Member Exclusive

Incumbents take the pedal off ad spending to compete with fintechs

  • Banks and insurance companies are redistributing their ad spend budget to technology and innovation to compete with challengers.
  • Insurance companies will account for 45.6% of the industry’s ad spend.
close

Email a Friend

Incumbents take the pedal off ad spending to compete with fintechs

Digital ad spending in the financial sector is likely to slow down in 2021, according to Insider Intelligence. The rapid rise of fintechs will likely force the industry’s incumbents to reel back on ad spending. Instead, they’ll turn their attention and funds to technological innovations to compete with fintechs. 

Source: Insider Intelligence

Financial services institutions are expected to spend up to $24.5 billion on digital ads in 2021. Although that’s still some $4 billion more on ad spend than in 2020, spending growth is expected to grow by 16.7% — that’s down from the 20%+ growth in 2019 and 2020. This trend is expected to continue over the next three years. The financial services industry will collectively spend more on digital advertisements — up to $30.8 billion — but ad spending growth will slow to 11.3% by 2023. 

 


This content is available exclusively to Tearsheet Outlier members.

Tearsheet Outlier information and signup Missing out? Subscribe today and you’ll receive unlimited access to all Tearsheet content, original research, exclusive webinars and events, member-only newsletters from Tearsheet editors and reporters and much more. Join Outlier now — only $49/mo. Already an Outlier member? Sign in to your account

0 comments on “Incumbents take the pedal off ad spending to compete with fintechs”

Outlier OpinionsMakers

Member Exclusive, New banks

Banking Briefing — January 24, 2022

  • In this week's briefing, we've got Zopa converting to bankism, Current breaking the challenger bank mold, and banks shutting down branches.
  • The look and feel of banks is changing, but not always in the most predictable way.
Rivka Abramson | January 24, 2022
Finance Everywhere, Member Exclusive

Embedded Finance Briefing: What’s going on at Marqeta?

  • In this week's Embedded Finance Briefing, we take a deep dive into Marqeta's performance in Q3 2021. We review analyst discussions and the key takeaways from the recent earnings call.
  • We also look at the potential for embedded finance offerings in serving SMBs, and how incumbent banks might be under threat.
Subboh Jaffery | January 21, 2022
Green Finance, Member Exclusive

Green Finance Briefing: Sustainable lending solutions and the rise of climate fintech

  • New innovations in fintech are bridging the gap between financial institutions and understanding climate risks in loan portfolios.
  • We're also looking at startups that have launched over the past few years targeting the intersection of climate risks, sustainability, ESG, investments and banking.
Iulia Ciutina | January 21, 2022
Member Exclusive

Deep Dive: Current

  • Current is a challenger bank with a focus on improving consumers’ access to banking services and financial literacy through technology.
  • Starting out as a teen banking product, building its own core technology, and now diving into DeFi, the company has taken an interesting route compared to competitors.
Rivka Abramson | January 20, 2022
Member Exclusive, Payments

Payments Briefing: B2B payments are slowly catching up with B2C

  • This week, we look at how B2B transactions are going digital.
  • Bar Geron, co-founder and CEO of payments firm Balance, says that B2B ecommerce is following the same trends as B2C – just some years later.
Ismail Umar | January 20, 2022
More Articles