Most US B2B businesses are not only familiar with embedded finance, but they are already offering an embedded finance solution.
This is one of the findings from new research conducted by Juniper Research in collaboration with Galileo Financial Technologies.
The top three critical business pain points being solved by embedded finance today are: customer retention, cash flow management and revenue growth.
The research, published as the Galileo Embedded Finance Report, highlights the inherent need for US businesses to offer embedded finance solutions to better enable payments, payroll, credit and lending, insurance, banking and other financial services across the B2B industry.
Among the 63% of businesses who use embedded finance today, the majority (78%) work with two or more providers to enable their solution, with fintechs being the top preferred provider.
“The dramatic rise in the adoption of digital payments among both consumers and businesses, has enabled people and businesses to do more with technology than ever before – paving the way for enormous growth for embedded financial services,” says Seth McGuire, chief relationship officer of Galileo Financial Technologies.
“The market has evolved at lighting speed and this new research confirms that forward-thinking B2B executives are embracing embedded finance solutions as a key part of their growth strategies.”
The survey of 450 C-level executives in B2B businesses across the US asked business leaders about their attitudes towards embedded finance, what types of financial services they currently or want to offer, how many providers they use, who they prefer as their embedded finance partner and what value embedded finance solutions provide to their clients.
Key findings include:
* 85% of B2B businesses are familiar with the concept of embedded finance.
* 65% of those not currently offering an embedded finance solution are now considering offering one.
* 68% would prefer to offer embedded finance services from a non-bank provider.
* Payments, employee/employer services and credit and lending solutions are the top three use cases in market today.
“Customer retention, a major pain point for businesses, can be significantly enhanced through embedded finance tools. This is a critical differentiator that businesses must leverage, or they will be left behind,” says Nick Maynard, study author and head of research at Juniper Research. “As the demand for digital services continues to grow rapidly, there is significant market opportunity for businesses who go to market in an efficient, scalable manner.”