More than 50 per cent of top European business leaders are looking to launch more embedded finance schemes, a survey has revealed.
An independent poll of 753 bosses in retail and eCommerce companies spanning the UK, Germany and Belgium, indicated most would back such initiatives – which integrate financial services in non-financial companies.
The survey, exclusively shared with City A.M. today, was conducted last month by Censuswide, also outlined that nearly 40 percent of decision makers were unsure what the term meant.
It found almost 75 per cent of retailers are already offering products, such as as loyalty schemes, cash back and credit cards, ‘Buy Now, Pay Later’ (BNPL) schemes and overdrafts, while 56 per cent plan to have more schemes in the future.
Commissioned by ‘banking-as-a-service’ provider Vodeno, the poll revealed that Britain was leading the way, with 82 per cent of firms offering embedded finance products, ahead of the 74 per cent average, and of both Germany (75 per cent) and Belgium. (64 per cent).
Wojciech Sobieraj, CEO of Vodeno, said interest in the concept was “rising rapidly among non-financial businesses”, and that “smart brands understand the value of embedded banking because they know that creating a better checkout experience will increase conversion and customer engagement.”
While stressing the research showed growing interest, he stressed that the “technology must be coupled with a licence and the compliance and regulatory expertise in order to offer these products.”