BASINGSTOKE, U.K./SALT LAKE CITY– Most U.S. B2B businesses are not only familiar with embedded finance, but they are already offering an embedded finance solution, resolving three critical pain points in the process, according to new research conducted by Juniper Research in collaboration with Galileo Financial Technologies, a leading financial technology company owned and operated independently by SoFi Technologies.
According to the research, those top three critical business pain points include customer retention, cash flow management and revenue growth.
The research, published as the Galileo Embedded Finance Report, highlights the inherent need for U.S. businesses to offer embedded finance solutions to better enable payments, payroll, credit and lending, insurance, banking and other financial services across the B2B industry, according to the organizations.
Two or More Providers
The research found that among the 63% of businesses that 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,” said Seth McGuire, CRO 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 Questions & Key Findings
The survey of 450 C-level executives in B2B businesses across the U.S. 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.
The Key Findings
Key findings include, according to the companies:
- 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 an offering
- 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
‘Critical Differentiator’
“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,” said 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.”
The Galileo Embedded Finance Report also explores why businesses are gravitating toward embedded finance, the newest use cases for U.S. B2B embedded finance and how the B2B embedded finance market is catching up with B2C offerings. Use cases include offering third-party payment options such as fixed-rate installment loans or Buy Now, Pay Later (BNPL) options.
Maynard will be hosting a webinar around the survey findings on Oct. 4 at 1:00 PM ET. Register here.
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