5 successful insurtech apps and lessons banks can draw from them

29th April 2021 |
4 min read

In the coming years, decentralization will be a prevailing trend in the business and tech sectors. Banks and other large corporations, in order to thrive, will have to learn from and work with start-ups. That’s why we decided to take a closer look at five successful fintech and insurtech apps and see what’s the secret of their success. And, more importantly, what lessons can banks draw from them?

Lemonade: Insurtech app (AI-powered Digital Insurance)

It’s an AI-fueled app that’s based on selling insurances online. With Lemonade’s AI bot, you can buy a policy within seconds, without the need for any paperwork or phone calls. Everything is simplified and quick.

WORTH FOLLOWING:

  • Comprehensive service working anywhere in the world;
  • Just one package for various natural phenomena;
  • Policy 2.0: Everything is written in a straightforward, understandable way;
  • Everything you need to know is available directly in the mobile app;
  • The lemonade giveback program–a business model based on transferring financial surplus to non-profit organizations;

LESSON FOR BANKS: Communicate with customers in a simple and transparent way. Make your products intuitive and comprehensive. And finally, remember about CSR.

Hippo: Home insurance app

Hippo’s policies offer modernized coverage adjusted to the way houses are used today. Especially regarding things like electronics and home office equipment. Interestingly, Hippo provides policies that include smart home monitoring systems, which increase the customer experience and decrease the risk of break-in.

WORTH FOLLOWING:

  • Modern solution adjusted to the way we use and work in our homes;
  • Hippo offers access to home-care services and ongoing home maintenance;
  • They use advanced technology to offer coverages for your home with just the right amount of protection;
  • 4x higher coverage limits on electronics than other providers and enhanced coverage on essential home appliances;

LESSON FOR BANKS: Adjust your products and services to the ever-changing market and customer needs. If you can offer some valuable (mind you, valuable from the customers’ perspective) additional services – do so!

Planto: Fintech app (personal finance)

Planto offers a solution for monitoring all your expenses, regardless of which bank you are in. But Planto also does more! It grants loans and credits, thanks to their business model based on intermediation in granting loans.

WORTH FOLLOWING:

  • No manual inputs needed; you can track your expenses by linking to 50+ financial institutions
  • Straightforward and intuitive interface
  • Planto aggregates all relevant public data to help you make informed financial decisions
  • The app helps you save money for your specific goals

LESSON FOR BANKS: Make your mobile apps straightforward and intuitive. Help your customers achieve various goals they set for themselves. You should implement automation whenever it’s possible.

Nubank: Fintech app (Brazilian neobank)

Largest neobank in Brazil. They offer modern and transparent solutions to manage your money. What is more, they can offer more online services and useful features, primarily because they don’t have to invest money in brick-and-mortar facilities.

WORTH FOLLOWING:

  • This all-in-one app has everything you need: Online banking account, credit cards, loans, business accounts, and insurance offer;
  • No annuity or maintenance fees;
  • Free and unlimited transfers to any bank;
  • Includes a card with a debit option, so customers can make purchases or cash withdrawals;
  • No credit checks in order to open an account;

LESSON FOR BANKS: Think about introducing at least one free account into your current offer. If you have a mobile app, make it as comprehensive as possible. In fact, mobile banking apps ought to have the same functions as the desktop version.

Robinhood: Investing app

It’s a US-based app that allows you to invest and trade with no commissions included. Interestingly, Robinhood makes money not on transaction fees but through their freemium model. All the premium subscriptions for advanced investors are paid. According to Bloomberg, Robinhood makes nearly half of its revenue (more than 40%) from high-frequency trading and payment for order flow[1].

WORTH FOLLOWING:

  • An all-in-one app: Allows you to invest, manage your money, and buy and sell cryptocurrencies
  • You can invest with options, stocks, gold, and cryptocurrencies
  • Referral program (for each recommendation, you can earn a reward stock)

LESSON FOR BANKS: Allow various investing options for your customers. Remember that cryptocurrencies are more and more popular! Finally, think about some referral program.

What insurtech apps teach banks?

As you can see, there’s quite a lot going on in the fintech and insurtech sector. Many banks and large insurers could learn from their smaller, yet more innovative, competitors. Would you like to put all this knowledge into action? At Innovatika, we help large companies (and start-ups, too!) be more innovative, improve CX, and recognize and respond to new market opportunities. Here, at our venture building studio, we give ambitious corporations a way to invest in modern solutions and build profitable businesses with sustainable business models.

Are you interested? Drop us a line today, and let the work begin!

Jan Molski
Jan Molski
Research Analyst, Junior Marketing Specialist
Management & AI student at Kozminski University. He is working on marketing, sales and business strategies with the Growth team by, among other things, preparing analysis and researches. He is also responsible for the company website and SEO.

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