Galileo and Juniper Research Reveals Surge in B2B Embedded Finance Demand

Rhea-AI Summary

New research by Juniper Research in collaboration with Galileo Financial Technologies shows a significant trend in the B2B sector towards embedded finance. Most U.S. B2B businesses (63%) are adopting these solutions, with key benefits including customer retention, cash flow management, and revenue growth. The report indicates that 85% of businesses are familiar with embedded finance, and 65% are considering its implementation. Top use cases include payments and credit services.

Positive

• 63% of U.S. B2B businesses are now using embedded finance.
• 85% of surveyed companies are familiar with embedded finance.
• 78% of those using embedded finance are working with multiple providers, indicating strong market engagement.
• 65% of non-users are considering implementing embedded finance solutions.
• Top pain points addressed by embedded finance include customer retention, cash flow management, and revenue growth.

Negative

• None.

New Data Shows B2B Businesses Choose Fintechs as their Preferred Embedded Finance Provider as Use Cases Expand

HAMPSHIRE, UK & SALT LAKE CITY--(BUSINESS WIRE)-- New research conducted by Juniper Research in collaboration with Galileo Financial Technologies, a leading financial technology company owned and operated independently by SoFi Technologies, Inc. (NASDAQ: SOFI), reveals most U.S. B2B businesses are not only familiar with embedded finance, but they are already offering an embedded finance solution. The top three critical business pain points being solved by embedded finance today are: customer retention, cash flow management and revenue growth.

The research, published as the Galileo Embedded Finance Report, highlights the inherent need for U.S. businesses to offer embedded finance solutions to better enable payments, payroll, credit and lending, insurance, banking and other financial services across the B2B industry. Among the 63% of businesses who use embedded finance today, the majority (78%) work with two or more providers to enable their solution, with fintechs being the top preferred provider.

“The dramatic rise in the adoption of digital payments among both consumers and businesses has enabled people and businesses to do more with technology than ever before—paving the way for enormous growth for embedded financial services,” said Seth McGuire, CRO of Galileo Financial Technologies. “The market has evolved at lighting speed and this new research confirms that forward-thinking B2B executives are embracing embedded finance solutions as a key part of their growth strategies.”

The survey of 450 C-level executives in B2B businesses across the U.S. asked business leaders about their attitudes towards embedded finance, what types of financial services they currently or want to offer, how many providers they use, who they prefer as their embedded finance partner and what value embedded finance solutions provide to their clients. Key findings include:

• 85% of B2B businesses are familiar with the concept of embedded finance
• 65% of those not currently offering an embedded finance solution are now considering offering one
• 68% would prefer to offer embedded finance services from a non-bank provider
• Payments, employee/employer services and credit and lending solutions are the top three use cases in market today

“Customer retention, a major pain point for businesses, can be significantly enhanced through embedded finance tools. This is a critical differentiator that businesses must leverage, or they will be left behind,” said Nick Maynard, study author and Head of Research at Juniper Research. “As the demand for digital services continues to grow rapidly, there is significant market opportunity for businesses who go to market in an efficient, scalable manner.”

The Galileo Embedded Finance Report also explores why businesses are gravitating toward embedded finance, the newest use cases for U.S. B2B embedded finance and how the B2B embedded finance market is catching up with B2C offerings. Use cases include offering third-party payment options such as fixed-rate installment loans or Buy Now, Pay Later (BNPL) options.

To learn more, Juniper Payments Research Head Nick Maynard will be hosting a webinar around the survey findings on Tuesday, October 4, 2022 at 11:00 MT / 1:00 PM ET. Register here to learn more.

About Galileo Financial Technologies

Galileo is a leading financial technology company whose platform, open API technology and proven expertise enable fintechs, emerging and established brands to create differentiated financial solutions that expand the financial frontier. Galileo removes the complexity from payments and financial services innovation by providing flexible, open API building blocks and a secure, scalable, future-proof platform. Trusted by digital banking heavyweights, early-stage innovators and enterprise clients alike, Galileo supports issuing physical and virtual payment cards, mobile push provisioning and more, across industries and geographies. Headquartered in Salt Lake City, Galileo has offices in Mexico City, New York City, San Francisco and Seattle.

About Juniper Research

Juniper Research provides research and analytical services to the global hi-tech communications sector; providing consultancy, analyst reports, and industry commentary.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220928005145/en/

Sam Smith, Press Relations (Juniper Research)

+44(0)1256 830002

sam.smith@juniperresearch.com

Alissa Clayton, Account Director (The Fletcher Group, on behalf of Galileo Financial Technologies)

647-390-9085

alissa@fletchergroupllc.com

Source: Galileo Financial Technologies

FAQ

What does the latest Juniper Research report say about U.S. B2B businesses using embedded finance?

The report reveals that 63% of U.S. B2B businesses are currently offering embedded finance solutions, addressing key issues like customer retention and revenue growth.

What percentage of B2B businesses are familiar with embedded finance according to the Galileo report?

The report indicates that 85% of surveyed B2B businesses are familiar with the concept of embedded finance.

What are the main use cases for embedded finance in B2B businesses?

The primary use cases include payments, employee services, and credit and lending solutions.

What growth opportunities are highlighted for B2B businesses in the embedded finance market?

The report highlights significant market opportunities for businesses that efficiently implement embedded finance solutions to meet growing demand for digital services.

When will the webinar discussing the Juniper Research findings take place?

The webinar will be held on Tuesday, October 4, 2022, at 11:00 MT / 1:00 PM ET.