Zurich, 3rd November 2022: additiv, a leading embedded finance provider, today publishes the results of a recent survey in a new, in-depth report: Understanding the Embedded Finance Opportunity – Consumer study 2022.
For the survey, over 3,500 consumers, across multiple countries and demographics, were interviewed and a list of compelling insights were identified, including:
- Over half of consumers would consider switching from a bank or other traditional financial services provider to a non-financial brand channel if they provided more innovative services.
- Two-thirds of consumers would take investment services from non-financial service providers.
- 70% of consumers would like to use cashback and loyalty points to invest.
- Almost three quarters of consumers would be prepared to switch payment methods in return for rewards.
- More than half of consumers would like to remove complexity by bundling together services into a single monthly subscription (such as digital subscriptions, tax-free savings and investments schemes, different insurance products etc).
- Over two thirds of consumers are interested in putting aside money into online savings pots for different goals (from an organization other than a bank).
- Take-up and satisfaction with online trading and investment platforms is already high, at 34% and 63%, respectively.
Focusing on the ‘what, why and how of meeting consumer needs’, the report provides a thorough analysis of identified consumer activity and preferences. It also offers access to over 30 insight charts and statistics from an extensive range of questions including:
- Consumer perception of existing financial service providers and their offerings.
- Current unmet consumer needs, and the forms of financial services to satisfy these.
- Consumer willingness to consume financial services propositions through non-financial channels/brands.
The new report allows any brand to judge and accurately respond to consumers’ financial needs, helping highlight the gap for financial service provision and the opportunity for brands to create new sources of revenue. In effect, now every company has the potential to become a fintech company.
Commenting on the detailed survey report, Christine Schmid, Head of Strategy at additiv, said:
“The key takeaways from our survey provide essential data and considerations to enable any brand (financial or non-financial) to improve customer engagement and/ or build an embedded finance business case.
We previously estimated that the embedded wealth market will be worth over $100 billion in new revenues. Our new survey report looks at consumer needs within wealth management, but also other areas, such as savings and insurance. It underlines the extent of the opportunity for brands willing to go beyond transactional banking and move into relational financial services such as mortgages and wealth management. The survey results indicate that there is an unmet demand for these relational financial services and that consumers have a propensity to take services overall from non-financial services channels.”
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About additiv
additiv partners with leading brands across the world to help them capitalize on the possibilities of embedded finance, integrating wealth, credit and insurance into their value propositions.
additiv’s orchestration platform enables financial institutions to access new distribution channels through a Banking-as-a-Service (BaaS) model. It also allows financial firms and brands to embed financial services into their existing client proposition. In addition, it supports wealth managers looking for best-in-class Software-as-a-Service (SaaS) to deliver better engagement at greater scale.
Headquartered in Switzerland, with regional offices in Singapore, UAE, and Germany, additiv is supported by a global ecosystem of partners.
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Emma Wadey
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