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Vodeno: Two-thirds of European retailers expect embedded finance to boost revenue in the next 12 months

Vodeno: Two-thirds of European retailers expect embedded finance to boost revenue in the next 12 months | Fintech Finance

Europe’s retailers are expecting significant returns on investment as the majority plan to embrace embedded finance over the coming 12 months, new research from Vodeno has revealed.

The Banking-as-a-Service (BaaS) provider commissioned an independent survey among 753 senior decision-makers in retail and eCommerce companies from the UK (251), Germany (250) and Belgium (252). It found the majority (64%) have a strategy in place for adopting embedded finance solutions, with the UK (73%) well ahead of Germany (66%) and Belgium (52%).

Vodeno polled the retailers about their reasons for integrating new financial products into the customer journey. Generating new revenue streams (41%), growing the customer basket (40%) and enhanced customer loyalty (40%) were cited as the top motivating factors.

Meanwhile, 39% of retailers are keen to improve customer insights and similar numbers (38%) want to offer a more convenient checkout experience.

European retailers predict strong returns on their investment. Two-thirds (66%) expect their organisation’s revenues to increase in the next 12 months as a result of integrating new products, such as credit cards and insurance, into their offering.

An equal proportion of respondents expect to strengthen their brand reputation and deliver a more personalised service to shoppers, both 69%. Meanwhile, 66% of businesses believe that integrating novel financial products into their proposition will lower operational costs, while 64% expect to acquire new customers in the next 12 months as a result.

A significant percentage (66%) have already worked with a tech vendor over the past year to create and embed financial products into their business model.

The whitepaper is available for download here: https://vodeno.com/reimagining-retail/

Tom Bentley, Chief Commercial Officer of Vodeno, said: “The allure of embedded finance for retailers is evident: new revenue streams, enhanced customer loyalty and a more fully rounded business proposition are all priorities for progressive companies looking to step into the world of financial services.

“Our research suggests that the motivations behind embedding banking products into the customer journey vary, but are all underpinned by a desire to remain competitive in the digital-first landscape. Retailers want to make the buying process simpler for the customer, and ultimately deepen that all-important relationship between the buyer and the seller.”


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