Embedded finance solutions used by three in five UK adults, study finds

A study by composable banking platform Temenos has found that three in five – 60% – of UK adults use embedded finance services when shopping online.

The study identified that the availability of embedded finance services has grown substantially over the past few years.

These include the use of an e-wallet, which has increased by 42% of UK adults over the past year, the use of BNPL solutions has climbed by 17%, rounding up the payment at checkout to donate to a charity or transfer to a personal investment has increased by 15%, purchasing insurance when buying a high-value product has gone up by 13% and taking out a loan at checkout to cover the cost of expensive items climbed 6%.

Meanwhile, embedded finance services are particularly popular amongst younger generations, with four in five within the 18-34 age bracket having used one in the past year. The use of e-wallets, for example, rose to 51% amongst those aged 18-34. Of those who have checked out using an e-wallet, almost three quarters do so at least once a month, with speed and security as the most appealing factors at 66% and 40% respectively.

Temenos chief strategy officer Kanika Hope said, “From retailers to airlines, ride-sharing apps and coffee chains, brands are embedding financial services into their online and mobile offerings to increase revenues, increase customer loyalty and gain deeper insights into their customers. The findings in this survey show that the use of these services is starting to gain real momentum, particularly among Gen Z looking for seamless and integrated online experiences in their daily lives. This presents new opportunities for incumbent banks as well as new entrants like the banking-as-a-service providers.”

Earlier this year, Temenos released an ESG investing-as-a-service to help banks and wealth managers meet the demand for sustainable investing.

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