Publicis Sapient’s recently forecast that embedded-finance revenues would increase by more than 40% annually through to 2025. Unsurprisingly, therefore, banking groups are now increasing their focus on providing these third-party services.
According to banking technology provider BankFi, there is a war waging for who – or perhaps even what – will be the ‘front door’ for the digital services required to run a business.
In October, Sumitomo Mitsui Financial Group announced plans to expand its embedded-finance business in southeast Asia, while NatWest entered into a strategic partnership with Vodeno Group to create a new banking-as-a-service (BaaS) business in the UK.
Just a few weeks earlier, HSBC introduced what it described as the only solution that embeds banking services into a cloud enterprise resource planning system in conjunction with Oracle NetSuite.
Head of platforms, Aman Narain, says the bank is enthusiastic about a broad spectrum of BaaS opportunities, from automating account payables to making FX services available to customers of banks who are unable to do it themselves, to supporting customers’ sellers on a supply chain with point-of-sale solutions that enable them to get credit and keep growing their business.
“There