Finance platforms are rushing to add prediction markets, but Inversion Capital founder Santiago Roel Santos warns of accelerated user churn due to the “casino-like” nature of these products. He believes focusing on easy-to-use financial services for retail clients is key to long-term success. Robinhood, Coinbase, and Gemini are all entering this space.

Blockchain-based prediction markets gained popularity during the 2024 US elections, with Robinhood partnering with Kalshi in March. Coinbase recently announced the addition of prediction markets, while Gemini’s affiliate secured a US license for event contracts. Santos believes these offerings pose a significant risk that could destabilize users in the long run.

Santos emphasizes the importance of financial superapps prioritizing products like credit cards, insurance, and savings vehicles to strengthen long-term outcomes. He argues that these “boring” products are essential for managing household liquidity and building a strong relationship with users. Prioritizing user needs as they mature financially is key for success in the finance sector.

Read more at Cointelegraph: Prediction Markets Hurt Fintech User Churn: Inversion CEO