As the financial world continues to change at a rapid rate, a new opportunity for banks has presented itself in the form of embedded finance. By leveraging existing expertise, technology, infrastructure and licences, banks can generate new and sustainable revenue streams by allowing nonbanks from a host of different industries to embed financial products — across payments, lending, investing and insurance — into their own customer-facing offers.
However, our study – conducted with Forrester Consulting in late 2021, in which we surveyed 900 decision makers at banks globally – found that many banks are facing significant challenges when it comes to offering services via a digital ecosystem/marketplace.
By improving internal culture, technology capabilities and focusing on how to better integrate with partners, banks can secure a firm footing in the financial ecosystem, ensuring new revenue streams and invaluable partnerships for the future.