Independent Banker - June 2022 - 63

ADVERTORIAL SPOTLIGHT
GUEST EXPERTS
Innovation
The Double-edge Sword of Embedded Finance
CHALLENGE: As global tech companies and vertical industry UX specialists increase their usage of new forms of embedded
finance, more financial interactions shift away from banks and financial institutions..
SOLUTION: Financial institutions can take advantage of embedded finance rather than being victims of it with individual
and integrated solutions from FIS® that can help keep your customers from looking elsewhere.
When it comes to embedded finance,
the question for banks is no longer
about whether they should jump in
but rather how they can offer their
own embedded solutions.
Embedded finance describes
banking and transactional solutions
offered by non-financial institutions
like food delivery apps or fintech
companies like Buy Now, Pay Later
providers. However, today's banks
have the opportunity to broaden
their customer bases, develop new
revenue sources in the form of fees
from third parties and stay just as
relevant as those big tech companies
and fintechs who offer consumers
high-concept apps.
Matt Collicoat,
VP of Strategy
and Business
Development
and tap into experienced technology
partners to develop the best-fit
solution.
WE'RE FAR FROM HITTING THE
PEAK FOR THE EMBEDDED
FINANCE MARKET, AND IT'S
LIKELY TO CONTINUE TO
GROW WELL BEYOND 2026.
Developing enhanced embedded
finance capabilities is no small
endeavor, which is why many banks
will ultimately work with a partner
like FIS who can help create the best
possible user experience. Banks can
then hone what makes their services
and offerings unique in the market
FIS has a range of individual and
integrated solutions that keep your
customers from looking elsewhere
for their banking needs. Instead
of turning to startups or tech
companies, customers can go
directly to you for faster, cheaper
and seamless financial activities
like invoicing, cash flow analysis,
accounting integration, insurance
and moving money in and out.
Additionally, you can take your
banking services to the end-users of
your own fintech customers through
experienced APIs and developer
portal integration.
For banks still on the fence, it's wise to
offer embedded finance capabilities
sooner rather than later to create
valuable distribution partnerships
and fend off the competition. One
FIS client success story began
when a financial institution in the
southeast was worried about PayPal,
Square, and other third-party
payment providers poaching their
customer relationships and deposits.
They positioned the embedded
receivables modules powered by
Autobooks as a competitive response
to these third parties and are using
the product to protect their client
base. Since then, the bank has seen
significant early demand, and they
are planning a full training and go-tomarket
rollout.
We're far from hitting the peak for
the embedded finance market,
and it's likely to continue to grow
well beyond 2026. The benefits for
consumers are undeniable, and both
tech companies and legacy financial
institutions are embracing the shift -
embedded finance is definitely here
to stay.
Matt.Collicoat@fisglobal.com
877.776.3706 *
fisglobal.com

http://www.fisglobal.com

Independent Banker - June 2022

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