Embedded finance platform, Solaris, has detailed the evolution of embedded finance in a new report. The report looks at the market potential for the mobility sector across Europe.
The study titled ‘On the move: The embedded finance opportunity in the mobility sector‘ was conducted in cooperation with the Handelsblatt Research Institute. The report analyses the market potential for the mobility sector in the four largest European markets: Germany, France, Italy and Spain.
Of these four markets, Italy emerged as the strongest with 61.8 per cent of respondents saying they would use embedded financial services from a mobility provider.
Following Italy, the remaining markets ranked as follows:
2) Spain: 51.3 per cent
3) Germany: 36.1 per cent
4) France: 33.3 per cent
To determine the potential of all markets, the study analysed 25 of the most popular mobility providers in each country. To achieve this, Solaris conducted an online survey with the Handelsblatt Research Institute and YouGov Deutschland GmbH.
Using this survey data, Solaris detailed the correlation between brand attributes and the likelihood to use financial services from a mobility provider. It found that a digital approach is attractive to some customers, yet the most important factor is trust.
The survey also found that the higher respondents rated the safety and reliability of a mobility brand, the more likely they would be to use a financial service from the same brand.
Mobility providers must embrace embedded finance solutions
Chloé Mayenobe, chief growth officer at Solaris, offered her view on the results. She said: “The study results tie in with our previous market research and confirm our experience in the field. Interest from mobility providers for embedded finance has risen noticeably.
“We have already been able to close exciting partnerships in Europe. For many of these brands, understanding how to best leverage their ecosystem and build a profitable business case is a challenge. That is why this time we also looked at the question of whether certain brand attributes are promising and examined individual age groups.”
Solaris previously published its first report on the emerging trend of embedded finance and its market potential. In this, mobility was identified as one of the most promising pioneering industries.
Mayenobe spoke on what mobility providers must take into account to ensure growth in the future. She explained: “Sustainable growth of mobility providers in the coming decades will only succeed by building customer-centric ecosystems.
“Above all, embedded and customised financial services will offer a decisive competitive advantage. They can boost customer retention, increase the number of touchpoints, and create new revenue streams. Based on our study, it is safe to say that another success factor is brand trust, which is why partnering with a regulated platform such as Solaris is key.”