London, UK, November 14 2023 – New data from OpenPayd, a leading global Banking-as-a-Service (BaaS) platform, spotlights an imminent embedded banking boom. While only 7% of large European companies offer embedded banking services today, 48% have specific plans to launch them in the next three years. 89% of those organisations will partner with BaaS providers to bring embedded banking services to market.
One in five (20%) UK-based firms offer embedded banking services today, a number set to climb to 67% in the next three years. In Germany, while only 3% of firms currently offer embedded banking services, that will rise to 69% in three years. 50% of Italian, 46% of French and 39% of Spanish companies all plan on offering embedded banking services in the next three years. The remainder report giving serious consideration to launching embedded banking services, but do not have specific plans in place. Critically, every firm surveyed had discussed the possibility.
European brands anticipate that embedded banking services will make a major contribution to year-on-year revenue growth. On average, organisations anticipate a 2% revenue bump in the first year, ramping to 16% growth in five years. In total, European firms expect embedded banking to generate €297bn in additional revenues over the next five years.
For nearly nine in 10 (89%) companies planning their launches, collaborating with a BaaS provider is the favoured route for building embedded banking products. Almost two thirds (65%) of these companies also intend on building new, internal fintech teams to work alongside them.
“European businesses that have embraced embedded banking services are already seeing the result. They’re experiencing material revenue growth and setting the pace for adoption”, said Barry O’Sullivan, Head of Payments and Banking infrastructure at OpenPayd.
“We’re also seeing a clear role emerging for BaaS providers as the enabler for embedded banking projects. That brings with it enormous opportunity and responsibility. It’s critical that BaaS providers are bringing the technology, the licences and the compliance oversight to ensure the success of their partners.”
The full report Embedded Finance in 2023 can be downloaded here.
– Ends –
Notes to editor
Conducted by Coleman Parkes, respondents included 150 senior executives from payroll and B2B fintech, B2C and B2B marketplaces, horizontal and vertical SaaS brands and gig economy platforms generating a minimum of €50 million in annual revenue across the UK, France, Germany, Italy and Spain. The survey was completed in August 2023 in accordance with the Market Research Society’s Code of Conduct. Respondents were responsible for the identification and implementation of new product and service offers to customers.
OpenPayd is a leading 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 the seamless user experiences needed to drive business growth.
OpenPayd’s platform removes the need to contract with multiple providers for different services and across different markets. Instead, businesses can access accounts, FX, international and domestic payments, acquiring and Open Banking services globally via a single API integration. With licensing across the UK, Europe, Canada and others, OpenPayd is committed to providing businesses with a fully compliant solution across all markets, leaving your business to focus on growth.
For additional information on OpenPayd, please visit https://openpayd.com/.