Maya Robertson
Europe’s finance app ecosystem is entering a new phase — one defined less by rapid expansion and more by fragmentation. According to new data from AppsFlyer, traditional banks, neobanks, investment apps, and money transfer services are pursuing sharply different paths for growth and retention, exposing structural weaknesses across the sector.
The analysis, based on 180 million installs across 187 finance and fintech apps in the UK, France, and Germany between 2022 and 2025, reveals that banks dominate retention but are stagnant in new user growth, while neobanks excel in acquisition but lag in long-term engagement. Investment and money transfer apps, meanwhile, are seeing faster shifts in user behavior, driven by global competition and volatile performance cycles.
Traditional banks continue to lead on customer retention, with 55–85% of their conversions coming from retargeting efforts. Cross-selling and converting existing web or branch users into app users have helped sustain engagement, with day-30 retention rates 1.5–2x higher than neobanks.
However, the data shows no significant growth in new users across Western Europe, leaving banks heavily reliant on their existing base. Analysts warn that this dependence could leave them exposed as digital-first competitors expand.
In contrast, neobanks are outperforming traditional banks in new user acquisition — particularly in France, where digital-first institutions attract twice as many users. Their growth stems from aggressive investment in search and social ad networks, including TikTok and Google, which have helped capture younger audiences.
Yet only 3–4% of conversions come from retargeting, suggesting weak long-term engagement and limited repeat activity.
Investment platforms, particularly those offering crypto or stock trading, are dominated by non-European providers, accounting for over 85% of all installs. Their growth fluctuates in line with cryptocurrency market trends — rising during rallies and collapsing during downturns. Retention is low: only 19% of users stay after day one, dropping to 4% by day 30.
Most paid installs come from smaller ad networks rather than major self-attributing networks (SANs), contributing to inconsistent traffic quality and higher churn rates.
Money transfer services are now the fastest-growing segment in Europe, led by US and Nigerian providers, with Indian platforms gaining traction in the UK. Their success is fueled by high re-engagement rates, with up to 40% of conversions driven by retargeting, indicating strong customer loyalty.
Each segment excels in one area but falls short in others — banks in retention, neobanks in acquisition, investment apps in scale, and money transfer apps in engagement. This lack of balance has created a fractured market, where no single player holds a complete growth strategy.
The report suggests that the next wave of growth will come from cross-segment learning: banks adopting digital-first acquisition tactics, neobanks embracing retention models, and investment apps stabilizing engagement beyond crypto cycles.
As Europe’s finance app market matures, the challenge is shifting from user acquisition to sustainable growth. With market saturation and evolving consumer expectations, success will depend on hybrid strategies that combine the strengths of every model — retention from banks, agility from neobanks, scale from investment apps, and engagement from transfer services.
In a market where users switch providers with unprecedented ease, the winners will be those who learn fastest — and adapt beyond their own segment.
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