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How Embedded Finance Empowers Program Managers to Thrive Amid Fintech Competition

A number of financial organisations have fallen into the trap of using legacy technology for too long and not updating either their tech or their approach in the past. For those looking to avoid the same fate, embedded finance could provide an appropriate answer.

Ivo Gueorguiev, the co-founder and executive chairman of Paynetics, a regulated e-money institution, passported to provide its services across the EU and the UK, discusses the potential of embedded finance in remaining competitive against a strengthening fintech sector and improving customer experience.

Ivo Gueorguiev is the co-founder and executive chairman of Paynetics on Embedded finance fintech
Ivo Gueorguiev, co-founder and executive chairman of Paynetics

The financial industry has changed over the past five years thanks to technological advancements, new partnerships, and radically changing consumer behaviour. As a result, the co-habitation of banks and fintechs has been a rocky journey. Traditional banking relationships have taken a back seat, and there has been a shift towards exceptional digital customer experiences being valued the most.

Traditional and established program managers now face the dual challenge of meeting rising customer expectations and competing against the growing influence of fintech startups.

The rules of engagement have changed. Implementing embedded finance can help program managers maintain their competitiveness, enhance the customer experience and unlock new growth opportunities.

Adapting to the changing fintech landscape

The financial services sector is working under an exciting and dynamic landscape. Fintech companies are revolutionising the delivery of financial services and challenging conventional providers, including banks and incumbent program managers, by streamlining processes and offering a superior user experience.

In the competitive market, program managers must look to match the higher bar in terms of customer experience, time to market, flexibility and overall program controls.

There also needs to be a focus on value-added services such as personalised customer support, training programs and embedded payment solutions. Program managers can go beyond the core product or service to provide additional benefits that address specific customer needs.

The power of embedded payments

Embedded payments offer several benefits to program managers who deliver a product that requires a payment element. It enables them to stand out and successfully compete with emerging fintechs after their business and market share. Rather than redirecting users to external payment gateways or using separate payment methods, embedded finance enables users to complete transactions without leaving the application or website.

  • Enhanced User Experience – By digitising the overall proposition and then incorporating payment functionality directly into the application, embedded finance creates a better customer experience by making convenient and popular features such as same-page checkouts and seamless payments possible. These capabilities enable consumers to receive personalised financial services within their favourite brand’s digital ecosystem.
  • Increased Conversion Rates – Simplifying the payment process and reducing friction can significantly improve conversion rates. Users can seamlessly make purchases or payments within the application, making them more likely to complete transactions. This can lead to higher sales, improved revenue, and overall business performance.
  • Improved Retention and Loyalty – Embedded payments contribute to customer retention and loyalty. By providing a seamless and hassle-free payment experience, program managers can enhance customer satisfaction and encourage repeat usage of the application. In turn, satisfied customers will remain loyal and recommend the platform to others
  • Monetisation Opportunities – Embedding payments opens up various additional monetisation possibilities for program managers. They can offer additional premium features or content for a fee within the application, implement subscription models, and also earn transaction-based revenue through commissions or fees. This diversification of revenue streams benefits the financial sustainability and growth of the business
  • Valuable Data Insights – Integrated payment solutions often provide valuable data and analytics on customer behaviour and transaction patterns. Program managers can leverage this data to gain insights into user preferences, optimise pricing strategies, and also identify opportunities for upselling or cross-selling. Additionally, they can make data-driven decisions to improve app performance and revenue generation.
  • Security Compliance – Embedded payment solutions adhere to stringent security standards and compliance requirements to protect sensitive customer data and financial information. Reputable payment providers allow program managers to mitigate security risks and ensure that transactions are conducted securely and safely within their applications.
  • Regulatory Compliance – Embracing the automation of Anti-Money Laundering (AML) procedures, streamlining transactions and risk management will allow businesses to adhere to European regulations while maintaining a positive customer experience with reduced delays and issues. Program managers can also make informed decisions on technology and partnerships, ensuring regulatory compliance and trustworthy services.
Looking to the future

As program managers look to stay ahead in the industry, capitalise on the existing client base and prepare themselves against increasingly complex challenges, embedded payments offer a modular and scalable solution.

It gives program managers the opportunity to create a seamless, user-friendly payment experience within software applications or platforms enabling them to greatly improve user satisfaction, boost conversion rates, as well as ultimately increase revenue opportunities.

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