Issue link: https://read.uberflip.com/i/1485733
The arrival of fintechs, nonbanks and challenger banks into the financial services industry has caused major disruption. Legacy banks are now competing for customer engagement with a new wave of young, agile players. However, many legacy banks are seeing the change in the industry as an opportunity. With open banking- powered embedded finance, they can provide young industry entrants and nonbanks with the infrastructure and functionality they need to offer end-customers their own financial products and services. This service, provided from legacy banks, is known as Banking-as-a-Service (BaaS), and is seen as a key revenue stream and growth opportunity for the banking sector. As we can see, functions that are vital to providing BaaS – effective IT integrations, business APIs, advanced marketplace/ecosystem – are considered key priority initiatives among our banks' respondents. A KEY STRATEGY FOR BANKS MOVING FORWARD B A N K S P R E P A R E F O R E M B E D D E D F I N A N C E W H I T E P A P E R EMBEDDED FINANCE IN ACTION 02 MARKETPLACE AND ECOSYSTEM 03 WHAT PARTNERS THINK ABOUT BANKS' CURRENT ECOSYSTEMS 04 CHALLENGES FOR BANKS WITH EMBEDDED FINANCE 05 SOPRA BANKING'S SOLUTION 06 A KEY STRATEGY FOR BANKS MOVING FORWARD 01 Distributing our products and/or services via other marketplaces or ecosystems banking 25% Building our own market, platform or ecosystem 25% Improving business and IT integrations with our partners 32% Investing in improved business APIs to connect to partners digitally 27% 27% 25% 25% 32% PRIORITY INITIATIVES