header icon
header icon
header icon
header icon
header icon

Embedded Finance Innovation for Fintechs and Digital Platforms

October 4, 2021

According to a new embedded finance report by Accenture sponsored by Plaid, a Galileo partner, embedded finance can offer opportunities everywhere.

By Seth McGuire, Chief Revenue Officer, Galileo Financial Technologies

The landscape of financial services is changing quickly before our eyes. Innovation that began with fintech startups and standalone apps has evolved. Banks and other financial institutions are leaning heavily into digital finance to deliver the types of integrated, mobile and connected experiences that consumers increasingly demand. Embedded finance is emerging as the next big wave in this transformation, as a new way to surface financial services in context and at the point of need for consumers.

At Galileo, we’re noticing that in addition to banks, insurance companies and investment firms, an increasing number of non-financial enterprise companies are embracing embedded finance for new ways to attract and retain customers, unlock additional revenue opportunities as well as reduce customer acquisition and service costs.

According to a new embedded finance report by Accenture sponsored by Plaid, a Galileo partner, embedded finance can:

Add $230B in revenues for financial services providers by 2025 (Lightyear Capital)

• Allow companies to increase revenues between two and five times per customer (Andreessen Horowitz)

Accenture surveyed more than 1,000 non-financial companies (director level and up) about their embedded finance strategies and found it is already a priority for many companies—nearly half (47%) of U.S. respondents said their companies are already developing related offerings. Those that have begun implementing embedded finance strategies said they were either “successful” or “very successful” at increasing engagement levels (88%) and at attracting or acquiring new customers (85%).

Market shifts are happening everywhere as consumers embrace digital finance, creating opportunities in almost every segment of the market. As with many pivots, change lies in asking the right questions. Non-financial companies considering this area should start with their customers: What are my customers trying to accomplish and how can financial services make that easier for them? It’s less about embedded finance as the goal and more about simplifying the jobs to be done.

Companies must be able to assess whether they embrace three core qualities if they hope to be successful in their embedded finance journeys:

  1. Customer trust

  2. Relevance

  3. Business impact.

This exercise is as much about measuring customer loyalty as understanding how the brand fits into their lives.

Working with partners like Plaid, Galileo is helping companies in many industries, including Fortune 100 companies, implement embedded financial services to extend revenue opportunities and engage customers in new ways.

In June, Galileo announced it’s supporting Verizon to deliver Family Money, a new service for parents to help their kids as they take charge of their financial future.

“With Family Money, we’re showing what’s possible when tech and financial services come together,”  said Todd Oberstein, Executive Director Product Management and Development at Verizon. “Family Money provides even more value to our customers based on their unique needs. It’s the perfect way to help kids learn the ins and outs of managing money and yet another way we’re providing real benefits to our customers outside of the reliable connectivity they know and love us for.”

Contact us to discuss how Galileo can help your company embrace the opportunities in embedded finance.

Download the Accenture report on Embedded Finance report from our partner Plaid here.

February 21, 2024

Why Banks Shouldn’t Wait on Buy Now, Pay Later Services

With high levels of consumer trust and troves of data on hand, banks are well-positioned to capitalize on the booming popularity of buy now, pay later services.

See More
February 12, 2024

How BitPay Makes it Easier to Spend Crypto in the Real World

Explore how BitPay, supported by Galileo's payment processing, is transforming digital currency use. Learn about the seamless conversion of crypto to fiat for real-world transactions, and the BitPay Card's role in enabling this shift. Discover financial innovation that caters to both seasoned and new crypto users.

See More
January 17, 2024

How Qube Money is Enabling the Future of Envelope Budgeting

Galileo supports a number of functions for Qube’s platform, including the movement of funds between qubes, payment authorization, Auth API, and card issuing

See More
November 20, 2023

4 Ways Your FI Can Deliver Customer-Centric Banking in 2024

Siloed models and disconnected journeys lead to missed opportunities for FIs. Here's how a smarter, tech-based approach in customer-centric banking can create longer-lasting, more profitable banking relationships.

See More
Learn about the crucial role of issuer processing in electronic payments, the benefits they offer, and the key components involved in selecting one.
March 22, 2023

What is an Issuer Processor Platform and How to Work With One?

Learn about the crucial role of issuer processing in electronic payments, the benefits they offer, and the key components involved in selecting one.

See More