Earlier this week, Business Insider Intelligence revisited the fintech predictions we got right for 2018. Now it's time to take a look at the ones that didn't quite turn out the way we expected them to:
- We'll start seeing quantifiable results of fintech partnerships. Throughout 2017, we saw a plethora of fintech agreements being signed between countries, and this trend continued in 2018. However, even though countries remained interested in collaborating — the US and Singapore inked a fintech agreement in September, for example — these partnerships haven't yet produced tangible results. This year, we expected to see fintechs receiving funding and deals in their partner countries and agreement participants aligning their fintech regulatory regimes to make compliance easier for each other's startups. At the moment, though, it seems regulators are still very much in the information-sharing phase.
- Latin America will see a boom in fintech activity. We had high hopes for the fintech scene in Latin America for 2018, but it seems that it will still be a couple of years before it truly takes off. Fintechs in the region secured $271 million in funding in Q1 2018, which dropped 89% to only $30 million in Q2, and another 47% to just $16 million in Q3. The region's fintech scene is still largely carried by a few players, including Brazil-based neobank Nubank, which secured $150 million in Q1. Before a boom reaches this space, more players will have to establish themselves and pull in big funding rounds.
Check out our predictions for 2019 here.