target audience: TECH SUPPLIER Publication date: Feb 2024 - Document type: IDC Survey - Doc Document number: # US51550524
Embedded Finance: Gaining Momentum in Corporate Banking
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Abstract
This IDC Survey presentation examines how corporate bank embedded finance and collaborative ecosystem-driven initiatives are evolving in 2024. It is based on primary global research conducted by the IDC Financial Insights team in 4Q23.
Corporate banks have identified the potential impact ecosystem experiences can have on their businesses. Banks are modernizing their IT infrastructures to better exploit opportunities and new business potential arising from tighter integration with their partners. Collaboration and integration with partners will foster banks’ ability to meet ever-increasing customer expectations.
Selecting the right partners and business models is the first step to successfully operating in the open banking competitive landscape, where both partners and competitors may be found beyond the financial industry. Technological requirements and risks are clear operational challenges — but business challenges might prove more difficult to overcome.
The research explores the challenges and concerns associated with embedded finance, including issues related to technology, risk management, and governance.
“Beyond technological integration, risk management, and governance issues, banks must bear in mind that with embedded finance, customer ownership is under discussion. Beyond banks’ traditional asset of trust, customer interactions will drive customer perception. Brand, reputation, and relationship management are key to remaining relevant to customers.” — Research Director Maria Adele Di Comite, IDC Financial Insights