The data compiled by market intelligence company Sensor Tower from January 2019 to August 2022 revealed CommBank remained ahead of the pack in terms of downloads of its banking app.
Big-four counterparts in Westpac, ANZ and NAB trailed behind, having recently been overtaken NAB-owned ubank.
The number of Aussies switching to ubank coincides with increases to the cash rate, as ubank has passed on each increase in full to its customers with a Save or USave account.
On the other hand, the big-four have not been as generous with their increases to savings accounts, passing on limited increases to savings accounts since May.
Earlier this year, neobank 86 400 was absorbed by ubank with its app features such as savings and bonus interest targets adopted to benefit customers.
Westpac has recently attempted to up the ante in a bid to keep customers using its app, introducing spend tracking, budgeting set-up and insights into top expenses after it acquired MoneyBrilliant last year.
The rise in competition within the banking app space has left some behind, with popular budgeting app Pocketbook ditched by buy now pay later provider Zip as a cost-cutting measure.
Sensor Tower Managing Director APAC Tom Cui said the rise of neobanks in Australia has been a slower burn than first anticipated, but it appears a tipping point may be on the horizon.
“CommBank downloads are steadily on the decline whilst ubank, Up and Revolut continue to climb,” Mr Cui said.
“It’s surprising to see that Gen Zer’s are swaying more towards the big four banking apps - perhaps this is because they’re still tied to their parent's preferences and will make the switch to neobanks as they become more financially independent.”
Mr Cui said the next big trend in the financial services sector is the rise of super apps.
“These are the ‘Swiss army knifes’ of the world, providing one app for many purposes and will be at the centre of the next battle for banking customers - watch this space,” he said.
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Harry O'Sullivan
Harrison Astbury
Alex Brewster
