Embedded finance: an opportunity to grow exponentially
Fintech companies are still on the march and looking to rapidly grow their revenue by changing how they position and distribute services.
Nonetheless, the pandemic has made these efforts more challenging. Most fintechs are struggling to keep their customer acquisition costs within an affordable range. And, the already diminishing returns of traditional banks’ business models have worsened.
Similarly to what happened in the payments industry before, new regulatory efforts are triggering further innovation in the financial sector. This time, the new wave of financial disruption is tackling investment products.
As fintechs continue to unbundle the incumbent banks services, a new focus of B2B fintechs is set on enabling embedded finance. It is the latest industry trend that is creating new revenue streams and growth opportunities for companies not necessarily involved in finance and fintechs.