“Banks are in a constant battle for eyeballs on their digital site and to do that they need to provide a holistic experience of invoicing, accounting integrations, payments, matching and reconciliation. This is what we mean by embedded banking.” - Mark Hartley, BankiFi CEO and Founder.
Services typically offered exclusively by banks have been consistently picked off by fintechs and others who have offered specialist alternatives.This trend is set to continue as traditional regulatory hurdles and accessible, available and suitable technology continues to lower the barrier to entry for new entrants
What can banks do about it?
Our white paper looks as the best ways banks can respond, with a key emphasis around how to use technology to help small businesses with their bespoke financial needs and reimagine the their relationship with their business customers.
A poll conducted by IPSOS Mori reported in the EY SME research concludes that 36% of micros use either personal sources (18%) or family and friends (18%) for loans.
Only 39% applied for overdrafts in 2017 compared to 44% who chose to use the most expensive instrument, the credit card.
Even though the UK is the largest invoicing finance market in the world with a value of £300bn, 75% of which is provided by the five largest UK banks, only 40,000 businesses that turnover less than £500K use it.
For the banks, the challenge is: can they transform from simply providing payments to becoming an embedded workflow experience?
Get the answer to this question and much more by downloading your copy of Embedded banking: Time to reverse the trend here.
Leah Whittaker joined BankiFi as a business studies graduate in 2021 to support the sales and marketing team. Passionate about business, Leah enjoys learning about the world of open banking expanding her marketing knowledge.