Embedded Finance Usage Driven by Gen Z Enthusiasm

Embedded lending is already reshaping how consumers and smaller businesses access credit through its convenience and flexibility. Lenders recognize the transformative potential, but they also recognize implementation challenges that could get in the way.

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Consumers are turning to embedded lending more for essential expenses like groceries and bills, our data finds. This usage trend spotlights embedded lending’s developing role as a practical solution for managing cash flow gaps. Gen Z and millennial consumers are especially likely to use embedded lending. They are particularly likely to switch to providers that offer attractive embedded lending products.

For microbusinesses and small businesses (MSBs), embedded finance can serve as a key support for handling many operational and growth needs. MSBs that try embedded lending are more likely to prioritize it in the future, data shows, suggesting that experiences with the products tend to be positive and emphasizing the potential importance of first impressions in fostering loyalty.

Embedded finance offers lenders a meaningful opportunity to grow their revenue and reach new customers, particularly in the underserved microbusiness market. To do so, they must invest in technology and infrastructure to offer compelling embedding lending solutions. Challenges such as compliance, scalability and third-party integration must be navigated to unlock embedded finance’s full potential.

Read the December 2024 eBook to explore the transformative impact of embedded finance:

• Gain insights into embedded lending use trends across consumer and MSB markets.
• Discover which demographic segments are most interested in embedded lending.
• Learn how embedded lending empowers MSBs with greater financial flexibility.
• Understand the challenges that lenders face in offering embedded lending solutions.

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Download the eBook here.

This eBook delves into 10 impactful insights supported by data and analysis, offering valuable perspectives on the growing embedded lending landscape. Download the report to uncover how embedded lending is revolutionizing the consumer and small business segments.