// LATEST INTELLIGENCE //

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Executive Summary

Welcome to the new era of platform potential. Platforms and marketplaces are at the center of a revolution changing the financial service industry as we know it. Emerging technology and growing user demand have opened a window of opportunity for platforms to provide the financial services their SMB users have been missing – but that window will only be open for so long.

The opportunity, in short

• There is universal demand from SMBs for embedded finance: 64 % of SMBs are interested in financial services embedded within a platform.

• Payments is the foundation on which platforms will grow embedded financial services: 30 % of the platforms offer embedded payments services already and 74 % of SMBs are interested in it.

• Platforms are uniquely positioned to address the finance needs of SMBs. Having built a central and trusted role in their user’ s daily operations, platforms are well-placed to deliver financial services directly into SMBs’ workflows at the exact moment of need.

• There are three key financial services categories – cash advances, bank accounts, and card issuing – that offer platforms the quickest path to market and a potential revenue uplift of up to 70 %.

• We estimate that together, cash advances, bank accounts, and card issuing represent an addressable market of ~$ 110bn of revenue in the US, Europe and the UK, which represents ~ 45 % of the total SMB banking revenue pool. �

12 Intelligent SME. tech