Galileo and Juniper Research Reveals Surge in B2B Embedded Finance Demand
September 28 2022 - 10:05AM
Business Wire
New Data Shows B2B Businesses Choose Fintechs
as their Preferred Embedded Finance Provider as Use Cases
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New research conducted by Juniper Research in collaboration with
Galileo Financial Technologies, a leading financial technology
company owned and operated independently by SoFi Technologies, Inc.
(NASDAQ: SOFI), reveals most U.S. B2B businesses are not only
familiar with embedded finance, but they are already offering an
embedded finance solution. The top three critical business pain
points being solved by embedded finance today are: customer
retention, cash flow management and revenue growth.
The research, published as the Galileo Embedded Finance Report,
highlights the inherent need for U.S. businesses to offer embedded
finance solutions to better enable payments, payroll, credit and
lending, insurance, banking and other financial services across the
B2B industry. Among the 63% of businesses who use embedded finance
today, the majority (78%) work with two or more providers to enable
their solution, with fintechs being the top preferred provider.
“The dramatic rise in the adoption of digital payments among
both consumers and businesses has enabled people and businesses to
do more with technology than ever before—paving the way for
enormous growth for embedded financial services,” said Seth
McGuire, CRO of Galileo Financial Technologies. “The market has
evolved at lighting speed and this new research confirms that
forward-thinking B2B executives are embracing embedded finance
solutions as a key part of their growth strategies.”
The survey of 450 C-level executives in B2B businesses across
the U.S. asked business leaders about their attitudes towards
embedded finance, what types of financial services they currently
or want to offer, how many providers they use, who they prefer as
their embedded finance partner and what value embedded finance
solutions provide to their clients. Key findings include:
- 85% of B2B businesses are familiar with the concept of embedded
finance
- 65% of those not currently offering an embedded finance
solution are now considering offering one
- 68% would prefer to offer embedded finance services from a
non-bank provider
- Payments, employee/employer services and credit and lending
solutions are the top three use cases in market today
“Customer retention, a major pain point for businesses, can be
significantly enhanced through embedded finance tools. This is a
critical differentiator that businesses must leverage, or they will
be left behind,” said Nick Maynard, study author and Head of
Research at Juniper Research. “As the demand for digital services
continues to grow rapidly, there is significant market opportunity
for businesses who go to market in an efficient, scalable
manner.”
The Galileo Embedded Finance Report also explores why businesses
are gravitating toward embedded finance, the newest use cases for
U.S. B2B embedded finance and how the B2B embedded finance market
is catching up with B2C offerings. Use cases include offering
third-party payment options such as fixed-rate installment loans or
Buy Now, Pay Later (BNPL) options.
To learn more, Juniper Payments Research Head Nick Maynard will
be hosting a webinar around the survey findings on Tuesday, October
4, 2022 at 11:00 MT / 1:00 PM ET. Register here to learn more.
About Galileo Financial Technologies
Galileo is a leading financial technology company whose
platform, open API technology and proven expertise enable fintechs,
emerging and established brands to create differentiated financial
solutions that expand the financial frontier. Galileo removes the
complexity from payments and financial services innovation by
providing flexible, open API building blocks and a secure,
scalable, future-proof platform. Trusted by digital banking
heavyweights, early-stage innovators and enterprise clients alike,
Galileo supports issuing physical and virtual payment cards, mobile
push provisioning and more, across industries and geographies.
Headquartered in Salt Lake City, Galileo has offices in Mexico
City, New York City, San Francisco and Seattle.
About Juniper Research
Juniper Research provides research and analytical services to
the global hi-tech communications sector; providing consultancy,
analyst reports, and industry commentary.
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version on businesswire.com: https://www.businesswire.com/news/home/20220928005145/en/
Sam Smith, Press Relations (Juniper Research) +44(0)1256 830002
sam.smith@juniperresearch.com
Alissa Clayton, Account Director (The Fletcher Group, on behalf
of Galileo Financial Technologies) 647-390-9085
alissa@fletchergroupllc.com
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