Embedded Finance: A Fundamental Shift for the Financial Sector according to Rabobank

Beliefs and Implications

Regulation Alone Doesn’t Drive Embedded Finance: Most attendees believe that embedded finance goes beyond regulatory compliance and has far-reaching implications.

Distribution Channel Shift: Many see embedded finance as primarily a change in distribution channels, especially for large institutions.

New Revenue Streams and Innovation: Attendees anticipate significant new revenue opportunities, business models, and innovation.

Banks at Risk: While some fear that banks will lose out to competitors, most believe that embedded finance will require financial institutions to adapt and innovate.

Fundamental Shift: A majority of attendees believe that embedded finance will eventually cause a profound transformation in the financial sector.

Strategy and Alignment

Align Beliefs: Organizational alignment on the nature and implications of embedded finance is crucial for developing effective strategies.

Distribution Channel Focus: Companies that believe embedded finance is primarily a distribution channel may focus on building and investing in distribution channels.

Revenue Stream Prioritization: Those who view embedded finance as a new revenue stream may invest heavily in exploring opportunities.

Organizational Transformation: Companies that perceive embedded finance as a fundamental shift may seek to change their organizations from the inside out.

Take Action: Regardless of beliefs and strategies, it is crucial for financial institutions to take action and prepare for the impact of embedded finance.

Relationship Implications

Convenience and Relationship: While embedded finance enables digital convenience, it cannot fully replace human relationships.

Future Trends: Attendees speculate that even complex financial products like mortgages may become fully digitized in the future.

Consumer Demand: Consumer preference for digital services is driving the shift towards embedded finance.