Global Retail Banking 2022: Sense and Sustainability
Sustainability is moving up the priority list for all retail bank stakeholders. What does a “sustainable” bank look like?
Small and midsize businesses (SMBs) have long presented a puzzle to banking incumbents: they are too small to warrant the tailored services provided to large corporate clients, yet too diverse to be addressed in a scalable way, as retail banking clients are. This puzzle is now about to be solved through embedded finance: the integration by software platforms and marketplaces of an array of financial services into their offering. These services can be delivered to SMB users as part of their everyday workflow.
BCG and the financial technology platform Adyen conducted a comprehensive evaluation of the embedded finance potential, leveraging quantitative and qualitative data gathered from more than 50 leading platforms and marketplaces and more than 2,000 SMB users globally.
Our joint research shows that platforms and marketplaces are at the center of a revolution in the financial services industry:
The implications for the SMB banking industry will be far reaching. With the market for SMB embedded finance still at an early stage of development, the opportunity is too large to ignore. Platform companies are already staking out positions, supported by agile partners, and combining payments, account, lending, and card-issuance capabilities. The shifts will be profound:
The SMB banking revolution has already begun, with platforms leading the charge. Businesses looking to seize the moment in embedded finance must act now, as the window of opportunity may close rapidly.