GAUGING THE MARKET
Embedding finance into the client journey
The report finds that as clients become accustomed to hyper-personalised end-to-end experiences , they will be less willing to accept friction when accessing finance solutions .
Leveraging ecosystem and customer data and insights generated by Artificial Intelligence , financial institutions can be ready to serve their clients whenever and wherever a financial need arises .
Embedded finance enables traditional banks to engage with clients on the digital platforms and marketplaces they ’ re already using , integrating via secure application programming interfaces ( APIs ).
This puts ecosystems at the heart of a successful business model .
In addition to owning all levers in a product-centric value chain , CEOs can now also create business value through ecosystem collaboration . Client and business relationships are no longer transactional – they ’ re symbiotic .
AI and participation in a robust ecosystem of partners is paramount to a successful banking strategy in today ’ s industry .”
While 80 % of all consumers surveyed currently prefer to deposit their salary and keep their savings in traditional banks , 16 % of respondents globally are already comfortable embracing the full digital experience with branchless institutions . Many consumers are seeking a higher level of engagement from their financial institutions with 79 % of younger respondents being open to receiving insights on their better ways to save and 75 % being open to guidance on investing .
Both banking leaders and consumers cited security as their most important priorities but banking leaders overestimated the importance of peerto-peer payments and buy now pay later ( BNPL ) compared to priorities cited by consumers who designated good customer experience as their second highest preference , followed by mobile wallet functionality and rewards respectively .
Based on the study , gaps in technology infrastructure modernisation , lack of application programming interface ( API ) standards and the portion of resources devoted to privacy and security are slowing progress toward realising the business opportunities associated with embedded finance platforms and stand to impede the potential of exponential technologies – such as generative AI .
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