Education is key if embedded finance’s forecasted golden age is to achieve any real success; emphasises new Weavr insight.
The London-based company’s latest whitepaper analysed the future of embedded finance, and the benefits its foray into the mainstream will bring.
As per the data, the market for embedded finance will reach $138billion in the next four years, with a total available market of $15trillion.
Currently, the market value for embedded finance sits at $54.3billion, however as the whitepaper makes clear, the aforementioned predictions for the market can only be achieved if businesses fully understand the opportunities and market gains available to them.
As the company’s CCO, Daniel Greiller, explains in the whitepaper, “It’s clear, the businesses who best understand embedded finance are currently getting the most out of it.”
Greiller continued by saying that the benefits of embedded finance create a clear incentive for companies to
become more educated in this area.
“By studying what’s possible with embedded finance, you quickly become more open to the opportunities that this technology presents,” he added.
For Regina Lau, the company’s CFO, the progression of understanding around embedded finance will be aided by the developing generational attitudes of today’s decision-makers.
“I think we’re approaching an era where Gen Y, and older members of Gen Z are beginning to enter real decision-making roles,” Lau explains.
“These people have been brought up in a digital world, so they are more inclined to see the massive upsides of embedded finance.”
Aside from the need for a more widespread understanding of the sector, the whitepaper developed its insights by incorporating a range of case studies alongside industry commentary.
The inclusion of these sources underlined the company’s message that the success of embedded finance today really could be amplified if more businesses engaged with it.
The data brought to light industry cases in supplier finance, worker finance and the wider creator economy and customer retention; among others.
“Embedded finance has all the hallmarks of an unstoppable force that is revolutionising business, just like e-commerce did 20 years ago,” comments the company’s co-founder and CEO, Alex Mifsud.
Mifsud explains that the formation of the company’s latest whitepaper came from a vision where most financial services are purchased and consumed through digital products and services.
This capability will go on to serve broader and more fundamental customer needs like health, education, work, family and leisure.
“In these sectors,” Mifsud continues, “the focus would become more on the benefits of banking and less on the banking itself – with significant advantages to be had by both the businesses and end users.”
Image and article originally from thefintechtimes.com. Read the original article here.