From PYMNTS:
Lenders across major global economies offer embedded lending. However, data suggests that the typical lender that serves consumers or small- to medium-sized businesses (SMBs) has not fully embraced the potential of embedded lending. For example, nearly half of lenders serving SMBs have not entered this space.
Roughly 1 in 5 lenders show high interest in launching new embedded lending products in the next two years. One key issue for lenders is a lack of external platform integrations, such as marketplaces or in-store point-of-sale
Other findings from the study include the following.
Lenders’ interest in offering new products is relatively low and out of step with consumer and SMB demand.
Lenders’ lukewarm interest in offering embedded lending options is out of step with consumers’ and SMBs’ interest in switching to providers that offer them. Among lenders that serve consumers, 22% show high interest in offering new embedded lending products in the next two years. Another 27% are somewhat interested. The trend is similar for lenders lending to SMBs, as 22% express high interest and 29% moderate interest. The report details how interest varies by market.
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