Credit Management Apps: Performance and Competitive Dynamics in 1H24

Key Takeaways:

• The credit management cohort had experienced a consecutive YoY decline in downloads for two years, with a 9% drop in 2022 and an additional 8% decrease in 2023, aligning with rapidly rising interest rates. With the Federal Reserve holding interest rates steady in early 2024 and expectations for possible cuts later in 2024, the cohort has displayed signs of recovery as of late. In 1H24, the cohort saw a 2% YoY increase in downloads, with Credit Karma (+13%) and Kikoff (+45%) each achieving a double-digit YoY increase

• Credit Karma has outperformed competitors in user engagement, boasting a 30-day retention rate of 12%. Its success could be attributed to its diverse financial services through a partnership with MVB Bank. Additionally, the introduction of features such as no-fee overdraft protection and early access to government benefits in Dec’23 contributed to an 11% QoQ increase in average MAUs in 1Q24

• Experian and Kikoff aggressively bid on competitor brand names for ASA to boost their app visibility. In 2Q24, Experian led with an impressive SOV on ASA, appearing in the top position for 96% of searches for “CreditWise” and 66% of searches for “Credit Sesame.” This aggressive strategy led to a significant portion of potential users, who were searching for these competing brands, to download the Experian app. These downloads accounted for 9% of Experian’s total downloads from search

• According to Hub Entertainment Research, consumers are more likely to pay attention to ads if the ad break is shorter. Recognizing this trend, Experian has strategically shifted its focus to 15-second OTT ads in 1H24, increasing the proportion of its OTT ad spend on these ads by 46 ppts, from 32% in 1H23 to 78% in 1H24

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