UK Financial Institutions Are in Search of Embedded Finance Solutions, Report Suggests

According to a recent whitepaper published by Weavr, embedded finance is seen as a significant growth opportunity for banks in the UK. The whitepaper presents findings from a survey of 250 executives and managers from UK banks and financial firms, offering insights into current attitudes and actions towards embedded finance.

Key findings from the research include:

– 63% of respondents view embedded finance as a significant commercial growth opportunity for banks.
– 58% of UK banking executives encounter the term “embedded finance” at least once a week.
– 84% of UK banking executives agree on a definition of embedded finance, understanding that the customer’s user experience falls under the non-financial brand rather than the bank’s brand.
– 75% of UK banking executives say their business lacks a clear and shared action plan for embedded finance.

The full whitepaper provides details on the survey results and examines the nuances influencing the approach to embedded finance innovation across UK banks and financial institutions. The research, conducted in collaboration with Censuswide in May 2023, delves into ten crucial questions, providing thought-provoking answers.

While the survey responses indicate that embedded finance presents a promising commercial growth opportunity, many businesses appear to lack a defined strategy to capitalize on it. Executives express concerns about the compliance implications of embedded finance implementations, leading some firms to undertake cautious internally-focused research and development. However, this approach may limit the potential for speed to market and scalability offered by partnership approaches.

In response, UK banks and financial institutions are seeking partnerships with embedded finance technology providers that can offer proven solutions capable of scaling with the support of the banks’ capabilities and balance sheets. Weavr’s launch of the Embedded Finance Cloud in June, a proprietary technology stack that enables banks to create and distribute embeddable financial products, exemplifies this trend.

Alex Mifsud, CEO and co-founder of Weavr, highlighted the research’s significant findings, noting that 79% of financial services executives in the UK discuss embedded finance at least once per week. He emphasized that embedded finance should not be seen as a derivative of past open banking efforts and that solutions like the Embedded Finance Cloud allow banks to build financial products designed for embedding, ensuring risk and compliance are integrated. By embracing such solutions, financial institutions can tap into new revenue channels swiftly and safely.

For more details, refer to the full whitepaper.

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