In this second installment of our latest video series, Alec Donald, Retail Business Development Lead at Edenred Payment Solutions, discusses the complexities of integrating financial products into retail operations. He explains that the process is more challenging than it may appear at first glance and delves into the reasons why retailers are increasingly adopting embedded finance as a strategic differentiator during the cost-of-living crisis.
Understanding the customer’s perspective is crucial for achieving an effective embedded finance offering; it’s about aligning with consumer needs, whether that means offering insurance on premium products or fostering brand loyalty through rewards.
Retailers possess a wealth of “rich customer data”, Alec states, and highlights that by integrating embedded finance, brands can utilise this to customise a range of financial products that not only enhance customer benefits but also generate additional revenue and foster brand loyalty.
Alec sheds light on how Starbucks has used customer loyalty as a driving force behind it’s embedded finance strategy. The Starbucks Rewards programme, a key part of their embedded finance strategy, contributes significantly to their revenue, with the unspent balances on prepaid cards alone totalling $1.6 billion US dollars – underscoring the financial impact of getting embedded finance right.
Alec closes the interview with a tip for retailers embarking on their embedded finance journey: Start with the customer and map out the full UI you are aiming to achieve. Reworking once you’re halfway through the journey is extremely challenging!
Watch the full interview in just over 4 minutes here now.
To keep pace with the fast pace of change and meet the partners, both financial and non-financial enterprises, bringing embedded finance propositions to market, join us on the FTT Embedded Finance & Super Apps Stage at the next edition of the FTT Fintech Festival.
On the 11 & 12 November at the Brewery in London is where brands, banks and fintechs come together to plot the future of the industry.