W
e believe that banks should seek a broader role, delivering
integrated value in developing and orchestrating true
digital ecosystems, offering a large range of services to
their customers and other organizations. Embedded
finance is a new way of distributing financial products, while modular
banking and open finance will offer means to gain the agility, launch new
solutions and reach new customers.
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.
BANKS
PREPARE
FOR
EMBEDDED
FINANCE
W H I T E P A P E R
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