header icon
Solutions
header icon
Products
header icon
Platform
header icon
Developers
header icon
Company
English
Portuguese
HOW CONSUMER BRANDS BENEFIT FROM PARTNERING WITH BANKS TO PROVIDE EMBEDDED FINANCE TOOLS

How Consumer Brands Benefit from Partnering with Banks To Provide Embedded Finance Tools

16 de maio de 2023

Download the latest Embedded Finance Tracker®, a Galileo and PYMNTS collaboration. 

The rise of Banking as a Service (BaaS) has created unprecedented potential for non-financial brands such as retailers and consumer goods manufacturers to partner with Banks to deliver financial services to their customers within their own-branded platforms and experiences. 

This BaaS-powered capability enables providers to fulfill pent-up demand from customers who want to receive such embedded financial services from their favorite brands. 

Brands that can capitalize upon this opportunity by successfully integrating financial tools into their offerings, with a Bank partner, stand to reap significant benefits, including increased revenue, enhanced loyalty and more valuable long-term customer relationships. 

Embedded finance’s popularity is growing rapidly among consumers and businesses.
Embedded finance’s popularity is growing rapidly among consumers and businesses.

Embedded offerings boost acquisition, engagement.

For non-financial brands, leveraging offerings from regulated partner banks, such as payments, lending, banking and insurance creates the opportunity to augment–and even transform–their entire customer value proposition by providing complementary, contextual financial services within the customer journeys already taking place across their own platforms. 

What’s more, customer demand for such embedded services is high, as evidenced by the findings of a recent study by Cornerstone Advisors. Based on a survey of 2,500 U.S. adults, the report revealed:

  • Three-quarters of video gamers were interested in an in-game account where they could deposit money and use it to buy and sell virtual in-game items and collect rewards for game achievements and progress.

  • Two-thirds of home fitness fans expressed interest in getting health insurance from home fitness providers with rates based on their personal fitness habits.

  • Nearly two-thirds of fashion aficionados would consider getting an investment account from a luxury brand that allowed them to easily invest in that company’s stock.

  • Six in 10 car buffs would investigate auto insurance—with rates based on their personal driving history and behavior—directly from a car manufacturer.

  • Half of home improvement do-it-yourselfers are interested in a savings account that automatically sets aside money to save for large home improvement projects from Home Depot or Lowe’s.

the majority of B2B companies are offering embedded finance options
the majority of B2B companies are offering embedded finance options

Brands that already have begun leveraging offerings from regulated partner banks to address this demand have seen tangible benefits beyond just increased revenue stemming from fees. In an Accenture survey of 1,000 non-financial companies

  • 88% of organizations that had implemented some degree of embedded finance reported increased customer engagement 

  • 85% of such companies reported that the embedded finance options helped them acquire new customers.

“Consumers are very interested in receiving embedded financial services from their favorite nonfinancial brands,” said Seth McGuire, Chief Revenue Officer for Galileo Financial Technologies. “Meanwhile, the rise of BaaS and embedded finance, in partnership with partner banks, affords these brands unprecedented opportunity to meet that demand, and in doing so reap significant benefits including increased revenue, better product offerings and deeper, more valuable customer engagement over the long term.”

To learn more about how non-financial brands can leverage BaaS-powered embedded finance to meet rising demand and transform their offerings, download the latest Embedded Finance Tracker®, a Galileo and PYMNTS collaboration. 

Click here for our in-depth guide to how brands can benefit from BaaS.

Industries Expected to Adopt Embedded Finance Solutions
Industries Expected to Adopt Embedded Finance Solutions

Platform
23 de setembro de 2024

3 Maneiras de os Bancos Superarem o Obstáculo da Modernização Tecnológica

As instituições financeiras devem modernizar sua tecnologia core bancária para atender à demanda dos consumidores por digital e permanecerem competitivas. Tania Grambo da Galileo oferece três dicas para realizar com sucesso essa transformação tecnológica crítica.

Ver Mais
Platform
17 de setembro de 2024

Fintech e Bancos Através de Parcerias Estratégicas Centradas nas Pessoas

Descubra como as parcerias centradas no ser humano impulsionam o sucesso no fintech por meio da colaboração, inovação e toque pessoal.

Ver Mais
Platform
16 de setembro de 2024

Como Marcas e Bancos Podem Ganhar Muito com Parcerias de Finanças Integradas

Bancos e marcas podem colher grandes recompensas ao unir forças para oferecer ferramentas de finanças integradas. Veja como ambos os lados podem aproveitar ao máximo essas parcerias de alto potencial.

Ver Mais
AI monitoring financial transactions for fraud.
Guide
12 de setembro de 2024

3 Passos para Otimizar Ferramentas de Detecção de Fraude Financeira

A fraude em pagamentos e serviços financeiros não vai desaparecer – e está se tornando cada vez mais cara. Aqui está o que os provedores precisam considerar ao desenvolver e analisar ferramentas de detecção de fraude que sejam economicamente viáveis.

Ver Mais
Platform
11 de setembro de 2024

Adapte-se ou Torne-se Irrelevante: Modernização Incremental do Core vs Transformação Completa

Os bancos precisam atualizar seus core bancários. Saiba mais sobre três das considerações mais importantes que sua instituição financeira deve avaliar ao planejar o caminho a seguir.

Saber Mais