- How has embedded finance evolved as an opportunity for financial institutions and fintechs to partner in providing innovative client solutions?
- What are some successful examples of embedded finance alliances powering traditional banking solutions, and what new applications inside and outside the industry are customers eager to add to the list?
- How can financial services companies and technology providers identify opportunities to expand client relationships beyond current individual and business sectors and sizes?
- What challenges and risks exist with bank/fintech partnerships domestically and across borders?
- What factors might help (or hinder) banks’ partnering efforts, and what steps are recommended to take best advantage of emerging opportunities in the growing embedded finance universe?
Embedded finance has been a relationship expansion engine for financial technology companies for decades. It has enabled a large and growing (estimated at $80-90 billion annual revenue) list of powerful partnerships between many banks and fintechs. Mutually beneficial product and service alliances – often crossing industry sectors as well as country and regional borders – continue to expand in number and scope. Many recent and proposed embedded finance solutions offer product ideas and functionality to stretch the legacy financial institution’s pool of customers beyond its previous constraints.
Savvy consumers and businesses have helped propel Banking as a Service (BAAS), Payments as a Service (PAAS), Lending as a Service (LAAS), and other products offered by once tiny financial technology upstarts into mainstream acceptance and usage. Now, amid a fast-growing slate of proven customer experience successes in the marketplace, opportunities are emerging to help companies more effectively manage not just their main banking requirements, but also numerous other “outside the box” needs beyond the traditional financial services arena.
Amid increasingly blurred operational and marketing boundaries in the new digital economy, financial institutions and their prospective partners must understand the embedded finance landscape. They have to weigh the tremendous opportunities available to attract new and profitable customer relationships vs. the ‘hype’ surrounding some financial and non-financial product partnerships which haven’t panned out or may not ‘deliver’ on their promises. It’s time to explore what’s truly at stake, learn how to make the most of the myriad of collaboration options now and becoming available, and grasp the challenges and risks of acting – or not – to embrace present and future embedded finance opportunities.
Sign up for this Finextra webinar, hosted in association with Visa, to join our panel of industry experts who will discuss the benefits, and challenges, of embracing established and emerging embedded finance opportunities.
Speakers:
- Gary Wright – Head of Research, Finextra [Moderator]
- Alessandro Figueroa – Head of Strategy and B2B Partnerships, Visa Commercial Solutions
- Ranjit Balijepalli – Head of Product, UKI, Stripe
- Stephen Carter – Director of Product Marketing, iValua
- Sukhy Atwal – Head Non-Bank Financial Institutions, ClearBank
