New fintech clients are onboarding via mobile apps for half the price on Android compared to iOS, according to a new report. Even so, they are twice as likely to register an account on the app.
The average cost to acquire a new fintech app user via advertising fell from $2.45 last year to $2.33 this year: $4.35 for iOS, $2.09 for Android .
Of course, installing an app is easy. Converting this app install into an actual login is more difficult, and activating this login for a customer who is depositing money, purchasing insurance, or transferring crypto is much more expensive. According to app marketing company Liftoff’s report, only about 20% of app installers actually sign up and only about 11% actually activate their account (full disclosure, I co-host Liftoff’s Mobile Heroes Uncensored podcast).
And that means the real cost of acquiring new mobile customers in the fintech space isn’t cheap.
Finding a new app user who actually logs into the app to create an account costs over $8 on Android (over $22 on iOS). And getting active customers is even more expensive: $13.17 for Android and almost $67 for iOS.
Why the inequality?
“Traditionally, iOS users monetize better and provide higher ROI than Android,” said Dennis Mink, CMO of Liftoff. “But that has evolved over time, and with Android users now costing so much less and being activated more than twice as often as iOS users, marketers of financial apps should continue to expand their Android -customer base.”
The new report is consistently good news: the cost of acquiring new users has fallen throughout 2022.
In November 2021, new customer activations in mobile fintech apps peaked at almost $25, on average across both major mobile platforms. The same active customer is now only an average of $13.55.
Interestingly, banking app users are the cheapest to acquire at just $1.50 per user, while fintech users cost $2.41 and investment app installs are the most expensive at $2.65 — and most difficult to get into actual customers to convert
The report is based on an analysis of 182 billion ad impressions, 2.4 billion consumer clicks and 16.5 million app installs. It is available on Liftoff’s website.