EMBEDDED FINANCE

Radha Suvarna : We ’ re seeing the industry continue to move away from the ‘ euphoria stage ’ towards the ‘ prudent execution ’ phase where the focus is on the deployment of real use cases that drive client value .

Common reasons embedded finance programmes have failed previously include over-strategising , prioritising embedding over consumption , or pursuing use cases where others control the point of context – and economic interests .

To achieve success , it ’ s essential for banks to :

• Understand what use cases will deliver the most value to customers .

• Select monetisation models that deliver required capabilities and enable profits .

• Be clear on how to take a BaaS solution to market , selecting partners with capabilities that accelerate delivery .

Finastra will continue to act as an orchestrator and facilitator in this space . Our network of thousands of financial institutions and embedders ; together with our Fintech partnerships and suite of embedded finance solutions will help to accelerate market entry and monetisation .

Peter O ’ Halloran : Successful companies will be those that remain nimble and evolve their business models in line with a customer ’ s needs and preferences .

In recent years , the proliferation of digital commerce has driven consumer demand for choice and convenience in how they buy . What has become important for businesses is creating a more connected commerce experience .

So , whether the customer is ordering an item for collection through a mobile app or making a purchase directly in-store , embedded solutions should

140 May 2024