Insurance companies are leading the pack in terms of implementing new embedded finance solutions that can benefit themselves, their industry and their customers.
Thirty-six percent of financial institutions (FIs) said insurance companies are the types of customers most likely to adopt embedded finance solutions, according to the October edition of the “Embedded Finance Tracker,” a PYMNTS and Galileo collaboration.
Insurance companies are more likely than those in three other industries to adopt the technology, the report found, with just 11% of FIs saying the same of the sports industry, 23% saying it of healthcare and 31% saying it of retail.
That’s true of insurance companies of all sizes, the report added. Whether they are large enterprises, middle-market companies or small businesses, those in the insurance industry are more likely than other companies of the same size to adopt embedded finance solutions.
Insurance companies are looking to this technology to help them deliver the payments experiences B2B customers and consumers alike are coming to expect.
The issuance of insurance is one of the key areas of value when it comes to money movement, Galileo CEO Derek White told PYMNTS’ Karen Webster in an interview posted in July.
Read more: Galileo CEO Says Embedded Finance Gives Rise to Better B2B ‘Brand Experience’
For example, White said, a truck driver on a long-haul trip who blows a tire can now get a replacement authorized and paid for with just a few taps on a phone.
Customers’ expectations about payments are changing — so much so that it’s no longer the transaction they’re focused on. Instead, they are focused on the experiences tied to sending or receiving money, White said.
Meeting Customer Demand
Similarly, FIs are working to add embedded finance solutions in response to demand from both retail customers and corporate clients.
Nearly all the Fis surveyed by PYMNTS for the report— 92% —said they are implementing or planning to implement embedded finance experiences.
Just over half of them plan to add embedded finance experiences around payment processing. About four in 10 expect to do so with credit cards, loans, accounting services and deposit accounts, while about three in 10 plan to implement embedded finance experiences around cash flow management.
With solutions like these, both FIs and their corporate clients will be able to deliver quick and seamless online services to their respective customers.
“Seamlessness and ease of use are the names of the game, with customers expecting payments to be just as easy to navigate as eCommerce, social media or any other online interaction in their lives,” Alex Zerio, head of solution and platform architecture at Green Dot, told PYMNTS when interviewed for the report.
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