4 charts, Member Exclusive

4 charts on why banks need embedded finance to be relevant in the future

  • Banks have an opportunity to rethink their transformation strategies.
  • FIs can consider turning invisible by powering ecosystems instead of going direct to customers.
close

Email a Friend

4 charts on why banks need embedded finance to be relevant in the future

Gartner predicts that by 2030, 80 percent of incumbent financial services firms will go out of business through commoditization and ineffective competition.

The Age of Assistance, a term made popular by Google, is turning the financial services industry on its head. With ease of access and exposure to a large and diverse set of digital services, customers are no longer satisfied with just getting what they want. Today’s consumer demands flexibility in how and where they engage financial services to get what they want.

“Banks that take advantage of this shift will outpace their customers and seize a new generation of customers across a multitude of channels. Banks that fail to adapt, risk extinction,” said David Donovan, executive vice president of financial services at Publicis Sapient, in a recent whitepaper.

Thinking outside the app

new dominant design

“Customers think about banking while they’re doing other things, like shopping, making travel plans, and talking to their friends,” said Citi’s head of technology for its consumer bank, Gavin Michael.

SPONSORED

 

Banks shouldn’t focus all their digital transformation efforts on making their brand visible and present everywhere. The true power of a digital transformation initiative is when banks understand the power of invisibility, suggests Donovan. By partnering, leveraging customer trust, and building an embedded ecosystem centered around the customer, banks can find a way to be more relevant for their customers.


This content is available exclusively to Tearsheet Outlier members.

Tearsheet Outlier information and signup Missing out? Subscribe today and you’ll receive unlimited access to all Tearsheet content, original research, exclusive webinars and events, member-only newsletters from Tearsheet editors and reporters and much more. Join Outlier now — $59/mo Already an Outlier member? Sign in to your account

0 comments on “4 charts on why banks need embedded finance to be relevant in the future”

Data Snacks, Member Exclusive

Data snack: A breakdown of North American e-commerce payments projections

  • Digital payments, mobile wallets, and BNPL services grew in 2020 and will continue to grow by 2024.
  • Bank transfers, charge cards and COD expected to decline further by 2024.
Shehzil Zahid | June 16, 2021
Member Exclusive

BankProv taps into the crypto market with Ethereum-backed loans

  • BankProv is financing Ethereum-backed loans through a collaboration with crypto custody bank Anchorage Digital.
  • Institutional investors can now get USD on credit without liquidating their ETH holdings.
Ismail Umar | June 15, 2021
Member Exclusive

Cheat Sheet: Will cryptocurrencies ever achieve mainstream adoption?

  • The crypto market crashed a few weeks ago, and has not shown any real signs of recovery yet.
  • What does this mean for the future of the industry, and what are the challenges toward mainstream adoption?
Ismail Umar | June 10, 2021
Member Exclusive

Millennials’ financial habits diverge from previous generations, according to research by BofA

  • A significant percentage of millennials seem to be less about paychecks and more about ethics.
  • Covid has shifted the way millennials think about spending and saving.
Rivka Abramson | June 09, 2021
Member Exclusive, New banks

What’s happening in challenger banking, June 2021

  • Tearsheet publishes Challengers, its bi-weekly newsletter on what's happening in digital banking.
  • Here are the the ins and outs of how digital is impacting the business of banking as of June 2021.
Tearsheet Editors | June 03, 2021
More Articles