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

LONDON, May 31, 2022 /PRNewswire/ -- A new survey of 753 European retail and eCommerce businesses reveals why the vast majority are investing in embedded finance:

• A majority (64%) of European retailers have a strategy in place for adopting embedded finance solutions in the coming year
• New revenue streams (41%), growth in customer basket (40%) and enhanced customer loyalty (40%) are the top motivators for offering embedded financial products
• 66% of retailers expect their organisation's revenue to increase in the next 12 months

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." 

About Vodeno 

Vodeno's mission is to revolutionise the Financial Services Industry. Combining a modern cloud-native, API-based platform with deep banking experience, we are uniquely positioned to help regulated and non-regulated entities offer compelling and unique financial products. The VODENO Cloud Platform (VCP) is one of the world's first and most comprehensive fully cloud-based 'Banking-as-a-service' platforms, enabled in partnership with ECB-licensed Aion Bank, to deliver embedded financial services for banks, lenders and merchants across multiple sectors. Vodeno offers the ability to meet the demands of regulation while enabling innovation at speed. 

 For more information, please visit https://vodeno.com

 About the research 

The market research was carried out between 11 and 22 February 2022 among 753 senior decision-makers within European retail companies by independent market research agency Censuswide. Censuswide is a member of the Market Research Society (MRS) Company Partner Service, whose code of conduct and quality commitment it strictly adheres to. Its MRS membership means that it adheres to strict guidelines regarding all phases of research, including research design and data collection; communicating with respondents; conducting fieldwork; analysis and reporting; data storage. The 753 respondents are all in senior management positions within European retailers – 251 from the UK, 250 from Germany and 252 from Belgium.