Pathward Research Reveals the Balancing Act Executives Face as they Navigate Delivering Embedded Finance Solutions
Eighty-two percent of
As the role of embedded finance grows, Pathward set out to gauge sentiment and better understand how executives are evaluating its role for their companies. Not surprisingly, the research shows that the expansion of embedded finance solutions is expected to take place rapidly. In fact, 82% of executives planning or considering offering embedded finance predict it will happen in the next two years.
Nearly half of executives reported their company is supporting an embedded finance solution today. Not only do 44% of executives work at companies that already offer it, but another 33% plan to, and 17% are evaluating it – and for good reason. Among the executives who currently offer embedded finance solutions, nearly all have seen embedded finance as a revenue driver, including 53% who note it is a primary driver.
“Embedded finance presents opportunities to improve customer experience, build loyalty and drive revenue,” said Pathward President
Executives Acknowledge Embedded Finance Comes with Complexities
As with any new fintech solution, executives have concerns when it comes to embracing embedded finance. Among the concerns, security (45%), fraud (42%) and compliance (42%) top the charts when looking at individual concerns, especially as cybersecurity and regulatory scrutiny remain hot topics for businesses everywhere.
Among companies that currently offer embedded finance solutions, a surprising 81% of executives surveyed reported that they somewhat or significantly underestimated the complexity of building an embedded finance solution. This highlights the importance of preparedness when it comes to implementing embedded finance.
“Embedded finance comes with a learning curve for organizations of all sizes, but the benefits far outweigh the challenges that the implementation process presents,” said Pathward Divisional President of Banking as a Service
Embedded Finance – Executive Perspectives provides results from an online survey by Pathward of 500 senior executives conducted in
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Source: Pathward