What's Happening?
A recent report by Visa Consulting & Analytics and Equals has identified significant service shortcomings among embedded finance providers, which are hindering growth and causing revenue leakage. The study, which surveyed over 150 senior executives from
banks, fintech firms, trading platforms, and digital asset exchanges across the UK and Western Europe, highlights a disconnect between how organizations select payment partners and the factors that support long-term value, trust, and scalability. McKinsey estimates that embedded finance in Europe will surpass €100 billion by the end of the decade. However, operational inefficiencies are slowing momentum, with 45% of respondents citing service and support challenges as barriers to capturing full business value. Additionally, 82% of participants acknowledge the critical role of providers in enabling successful scaling.
Why It's Important?
The findings of this report are significant for the financial sector, particularly as embedded finance is poised to become a major component of the industry. The identified service gaps could lead to missed opportunities and financial losses for companies relying on these services. As embedded finance continues to grow, addressing these inefficiencies is crucial for maintaining competitiveness and ensuring that businesses can fully capitalize on the potential of this market. The report underscores the need for improved service delivery and support from providers to foster trust and scalability, which are essential for long-term success in the rapidly evolving financial landscape.
