Sustainability and embedded finance investments priorities for banks in 2022
Recently, Yobota surveyed more than 250 UK banking and financial services companies. Senior decision-makers within these firms confirmed that the majority of them (60 percent) launched a new digital product over the past 12 months in response to increased demand for fintech. When asked about recent trends within the fintech market, more than half (55 percent) agreed that embedded finance was the most significant in terms of elevating the customer experience.
In looking towards the year ahead, 44 percent of banking and finance firms plan to invest in buy-now, pay-later, or other embedded finance solutions in 2022. The vast majority (63 percent) intend to leverage open banking opportunities.
Yobota’s research also showed sustainability and financial inclusion are high on the agenda. More than two-thirds (69 percent) of respondents said their company plans to invest in new eco-conscious tools, while 64 percent will invest in products that drive financial inclusion. Elsewhere, three in five (58 percent) plan to invest in Banking-as-a-Service (BaaS) solutions.
To aid with these plans, companies want to see better regulation – 65 percent of banking and financial services firms said that UK regulators are not responding quickly enough to new trends, thereby hindering innovation within the sector. Further, 77 percent said the growing popularity of new fintech offerings must be supported with better regulation and compliance measures.
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