- Slice of Finance
- Posts
- Adyen & BCG Report Unveils $185B Opportunity in Embedded Finance for SaaS
Adyen & BCG Report Unveils $185B Opportunity in Embedded Finance for SaaS
Slice of Finance Team
03 Nov
Key Highlights:
$185 billion opportunity in embedded finance for SaaS, a 25% rise since 2022.
High demand from SMBs for embedded financial products like business accounts and loans.
Potential for 3-4x revenue growth for platforms integrating financial services.
Strategic playbook by Adyen and BCG to help SaaS platforms differentiate and expand.
50% of SMBs likely to adopt full suite of embedded finance products soon.
Source: PR Newswire
Notable Quotes:
"Embedding financial products creates a win-win scenario: SaaS platforms deepen user relationships and unlock new revenue streams by addressing SMBs' overlooked financial needs."
"We are observing an appetite from SMBs to consume a broader range of financial services from within their SaaS platforms, notably loans extending beyond simple cash advances or current accounts tightly integrated in receivables and payables workflows."
Our Take:
Adyen and BCG's report underscores a transformative period for SaaS platforms, emphasizing embedded finance as a critical growth driver in the financial technology landscape. By integrating products such as loans, accounts, and payment workflows directly into their ecosystems, SaaS platforms have a unique advantage to meet the expanding financial needs of SMBs—a segment often underserved by traditional banks. This strategic opportunity, supported by favorable economic conditions, is likely to encourage many SaaS providers to diversify and strengthen revenue channels. For SaaS platforms, adopting embedded finance could represent a crucial pivot to enhance user retention and create sustainable, long-term revenue streams in an increasingly competitive market.