Let’s back up: One year ago, we made our predictions for what would happen to banking and fintech in 2022. Given the outbreak of war in Ukraine, historically high inflation, and widespread economic uncertainty this year, the situation looks a lot different now than it did last December.
With that in mind, we look back at what we correctly predicted, what we got half right, and what we were woefully wrong about.
Our Big Tech in banking prediction: The Big Four will expand in embedded finance with Apple to offer additional products like buy now, pay later (BNPL)—while Meta and Google create more integrations between their digital wallets and existing banking or financing solutions.
Our hyper-personalization prediction: We foresaw that new players would build hyper-personalized experiences to help consumers take control of their finances. And that in 2022, banks and fintechs would focus on building products and services that address financial and social equity.
The Verdict: On the money. Banks and fintechs recognise that a one-size-fits-all approach to financial services excludes too many customers. Technology like artificial intelligence (AI) and real-time data is helping them to tailor experiences to ever narrower slices of their user base to boost customer satisfaction, growth, and loyalty.
Our fintech funding predictions: We said global fintech funding would reach a new peak in 2022 to pass $150 billion. We also predicted that fintech funding in Latin America would hit record levels, surpassing the $13 billion mark.
The Verdict: Way off. Black swan events like the Ukraine war have impacted funding and we failed to foresee economies on the verge of dipping or already falling into recession. Although full-year figures aren’t available yet, fintech funding both globally and for Latin America will be comfortably below 2021.
Our trading app prediction: We predicted eToro’s user numbers would exceed Robinhood’s by around 10 million by the end of 2022.
The Verdict: Probably right. eToro had 30.3 million users in total for Q3. And although there’s no data available for Robinhood’s total user base, its monthly active users have fallen steadily for five consecutive quarters to hit 12.2 million in Q3.
This article originally appeared in Insider Intelligence’s Banking Innovation Briefing—a daily recap of top stories reshaping the banking industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.