Treasury Prime has released the findings of its new survey, underscoring an increase in Embedded Finance adoption by community banks in the US.
As part of its research, conducted between 23 March and 8 April 2025, Treasury Prime surveyed 300 decision-makers at community banks, finding that more institutions are implementing Embedded Finance as a strategic growth supporter in a market where customer expectations are rising and economic uncertainty negatively affects the landscape. The company examined responses from individuals occupying senior leadership roles, Vice President or higher, and who were part of their institution’s decision-making process for IT, operations, risk management, compliance, commercial or retail strategy, or organisational strategy.
Community banks participating in Embedded Finance programmes
As detailed by Treasury Prime, 100% of community financial institutions are currently actively participating in, rolling out, or exploring Embedded Finance programmes. Additionally, institutions showcase confidence in their tech stacks, being optimistic about their ability to address regulatory uncertainty. Their approach toward Embedded Finance can be defined as compliance-first, with them aiming to balance efficiency and agility with regulatory discipline to achieve growth.
Among Treasury Prime’s key findings, the company mentions:
- Embedded Finance is no longer optional, with 99% of decision-makers saying that the technology plays an important role in their institution’s long-term survival and success, while 60% of them see it as extremely important;
- Higher expectations for Embedded Finance partners, with compliance-related factors ranking high together with tech considerations;
- Regulatory uncertainty influences approaches, with compliance being at the top of their mind while not withholding innovation;
- Confidence in their tech stacks, with 55% of decision-makers viewing them as fully modernised and upgraded with modern, flexible infrastructure;
- Real-time and instant technologies are viewed as a pillar for future growth, with 40% of decision-makers mentioning that real-time payment infrastructure is critical to their expansion strategy.
Furthermore, Treasury Prime highlighted that, by adopting Embedded Finance, vetting partners, navigating regulatory uncertainty, and continuing to improve their tech stacks to support instant and real-time payments, community banks can prepare their infrastructure and set the foundation for long-term growth.