SMEs keen on embedded finance, but more choice needed to increase take-up

Celent analyst Kieran Hines said embedded finance and BaaS were driving a lot of discussion in the industry. “We surveyed a number of banks in Europe at the beginning of last year, and 42% reported that BaaS or embedded finance was one of their leading investment priorities for last year, so it’s clearly high on the agenda for a significant minority of banks,” he added.

“We see this as part of the broader open ecosystem opportunity for the industry, in which banks can open new revenue lines, reach new customers and strengthen their connections with current ones through partnerships, and this is what drives the interest in these areas.”