Super Apps are everywhere in Asia – but why aren’t any offering gold trading? Sylvia Carrasco, CEO of Goldex, looks at the soaring demand for allocated gold and how incorporating gold trading into a Super App with the help of fintech innovation – can win over a massive, untapped consumer market that has previously been shut out of this form of wealth creation.
The dominance of the Super App is already unfolding in Asia, which is leading the way for the rest of the world. These Super Apps represent the next frontier in consumer technology, becoming so deeply integrated into the consumer’s life that they become indispensable operating systems.
When it comes to their rise, it is clear that their success primarily originates from a native mobile payments system. Fintech integration has been a core accelerating factor, and for the next generation of Super Apps, offering gold trading matters more than ever.
Super Apps: multi-service marketplaces
Super Apps need no introduction in Asia. WeChat hosts over a billion users, and since then, there have been multiple Super Apps established throughout emerging markets, including Grab, Go-Jek, Kakao, and AliPay.
Users can talk with friends, order food, or book a flight – all within one app and without having to switch to any others. The app becomes a multifaceted marketplace rather than a single service offering.
Crucially, a native mobile payments system has been a crucial ingredient to rapid scalability, allowing once single-purpose apps to partner with various businesses and offer hundreds of products and services within a single app.
By comparison, fintech is a late-blooming industry. App-based finance was a relative latecomer to digitisation, with a significant level of mistrust for digital banking and an ingrained loyalty to long-established traditional banks, with face-to-face appointments preferred.
However, there are signs that the pandemic has accelerated the shift towards digitisation. A report by Baker & McKenzie showed that within Asia Pacific, the pace of digital transformation has been speeding up due to the impact of COVID-19, with 92% of business leaders re-evaluating their digital strategies and optimising digital infrastructure to remain competitive in response to COVID-19.
This recent shift has primed the fintech landscape to offer an expansion of their services, and start-ups are now desperately competing to build out their product suite to meet increasing demand.
Racing to expand coverage and products
The new generation of app users wants everything ideally in one place, with minimal friction – and at the same time, are more focused on their personal finance than ever before.
The behaviour and habits of Asia-Pacific’s finance consumers are rapidly evolving, with the new generation wanting to use a new suite of digital banking options, including challenger banks and fintech firms who are willing to meet their banking needs.
McKinsey reports that digital natives (those born between 1980 and 2012, including Generation Z and millennials) are likely to drive Asia’s consumption over the coming decade, as they make up over one-third of Asia’s population consumption.
A recent report found that 20 to 30 per cent of this generation spends over six hours a day on their mobile phones, and over 70 per cent of them are very confident of meeting their financial goals.
This is where the next generation of Super Apps need to think about the financial products they are offering.
As fintechs look to expand their global reach and product depth, sooner or later, they will need to offer alternative wealth and investment products, so it’s only a matter of time until they look to allocated gold.
The enduring allure of gold
Global investment demand for gold has increased at an average of 18% each year since 2000, and a World Gold Council study revealed that 61% of respondents trust gold more than fiat currencies.
Right now, investors are more tuned in than ever to innovative ways of managing their portfolios through turbulence. The recent implementation of Basel III pushes the industry towards physical gold over the paper, and demand for the precious metal has increased by 40% from 2019 to 2020.
Goldex, a UK fintech start-up, has pivoted to B2B, and the response from the sector has been overwhelming. As a multi-dealer marketplace, it recently launched a bespoke trading integration for financial companies.
Through a plug-and-play connection over API or FIX, banking apps – or any other fintechs with Super App aspirations – can offer their customers access to the best pricing on physical gold 24 hours a day, seven days a week.
‘B2C fintechs are racing to build their product suites; it’s a game of survival of the fittest,’ Sylvia Carrasco, CEO of Goldex explained. ‘Companies are looking for geographical domination and expansion of their product offering. Lose the game, and their users will flip over to the next platform. Goldex’s pivot to B2B integrations enables it to capitalise on the huge demand for allocated gold from fintech and operators of embedded finance.’
Goldex is already directly working with 20 fintech companies to become the most convenient option for allocated gold, creating a product that so far has no direct competition. Apps can offer their users allocated gold within six weeks.
As the world increasingly moves toward the Super App model, more companies will likely consider how they can integrate several services rather than focusing on the specialisation of one product.
To tap into the full potential of global growth, services like Goldex’s B2B integration product could shape the future of the fintech industry and the next generation of Super Apps.
Unlock the world of allocated physical gold for your customers with Goldex. Through an easy API or FIX integration with the Goldex marketplace, your customers can buy and sell physical gold in a matter of weeks.
Find out more about Goldex for Business.
Important disclaimer: this document is not an official research report and the views expressed in it are those of the authors. The authors are not registered research analysts and there is no assurance the trends mentioned will continue or that the forecasts discussed will be realised. Gold as a commodity is not a specified investment for the purpose of giving advice under the Financial Services and Markets Act 2000, therefore, this does not give rise to rights to claim compensation under the Financial Services Compensation Scheme.