According to the report, only 7% of large European companies provide embedded banking services presently, with 48% having concrete plans to initiate them within the next three years. Of these, 89% intend to collaborate with BaaS providers to introduce embedded banking services to the market.
In the UK, 20% of firms currently offer embedded banking services, a figure expected to rise to 67% in the next three years. In Germany, the current adoption rate is 3%, projected to reach 69% within three years. Additionally, 50% of Italian, 46% of French, and 39% of Spanish companies plan to offer embedded banking services in the next three years, while the remainder are contemplating such services without specific plans. It's worth noting that all the surveyed firms have discussed the possibility of launching embedded banking services.
European brands anticipate that embedded banking services will significantly contribute to year-on-year revenue growth. The whitepaper further reveals that, on average, organisations expect a 2% revenue increase in the first year, escalating to 16% growth in five years. Collectively, European firms foresee embedded banking generating EUR 297 billion in additional revenues over the next five years.
Of the companies planning launches, 89% prefer collaborating with BaaS providers to develop embedded banking products. Additionally, 65% of these companies intend to establish new internal fintech teams to complement their efforts.
Representatives from OpenPayd talked about this new information and highlighted that European businesses that have embraced embedded banking services are already seeing material revenue growth and setting the pace for adoption. They also mentioned witnessing a clear role emerging for BaaS providers as the enablers for embedded banking projects. Specifically, BaaS providers are expected to bring the technology, the licenses, and the compliance oversight to ensure the success of their partners.
OpenPayd is a global payments and Banking-as-a-Service platform for the digital economy. Through its API-driven technology, businesses can embed financial services into their products and create a seamless user experience to drive business growth.
In February 2023, OpenPayd was chosen by UK-based fintech Citizen to become its real-time payments provider. The partnership aimed to give the end-users of Citizen’s clients a simplified payments experience via OpenPayd’s BaaS platform, which offers plug-and-play banking and payments infrastructure through a single API.
For more information about OpenPayd, please check out their detailed profile in our dedicated, industry-specific Company Database.
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