Fintech predictions-At the end of last year, Business Insider Intelligence drew up a list of five fintech predictions for 2019. As we enter the new decade, we’re revisiting them to see how they stood the test of time. Here’s what we got right about 2019:
- We saw a number of UK marketplace lenders shut down as regulations tightened. This year saw a few marketplace lenders in the country fold: Lendy went into administration in May this year, with Funding Secure following suit in October. While perhaps not to the extent that we anticipated, this year has definitely been a tough one for the peer-to-peer (P2P) lending space due to the Financial Conduct Authority’s new rules regarding marketplace lenders; the rules, which limit investments for new retail investors to 10% of investable assets, for example, were proposed in 2018, confirmed in June this year, and went into effect earlier this month. We expect more small companies will struggle in the future — especially since the regulation is still relatively nascent and the long-term effects will only be seen over the next few years.
- The digital-only bank wave hit the US market. US neobanks made significant strides over the past 12 months that heated up the country’s neobank market. At the time of our last predictions, Chime, for example, had 2 million accounts — a number that now stands at 5 million. The neobank also scooped up $200 million in funding, making it a unicorn. Moreover, European neobank players entered the US market this year: N26 and Monzo both launched, while Revolut plans to roll out its services soon, further fueling neobank developments in the country. And big tech firms are also looking to get in on the fun, with Google planning to launch checking accounts next year. That said, last year wasn’t all good news for digital-only banks in the US, with JPMorgan Chase’s Finn having to shut down and the Office of the Comptroller of the Currency’s fintech charter taking a hit that made its future uncertain.