6 out of 10 banks are investing in embedded finance solutions. What are their reasons to enter the market? Which challenges do they observe? We have surveyed 120 executives from German banks and provide the detailed insights in our latest study.
Embedded finance is one of the most important financing trends for retailers, OEMs and banks. In the last years, banks in particular have left the field of developing new age financing solutions to FinTechs and international groups, whether it is “buy now, pay later” solutions, subscription models or pay-per-use. Providers such as Klarna, Afterpay or Amazon are shaking up the market, while financial institutions are at risk of completely losing their traditional role in payment transactions for private customers.
This is a shortcoming that the institutions are now becoming painfully aware of. Every second decision-maker regretfully admits to having underestimated the potential of embedded finance and institutions are rethinking their setups and strategies for the future. The market leader, Deutsche Bank, has already entered the market as one of the pioneers – now other institutions also want to participate.