The embedded finance market is now ranking and evolving, according to an update shared by CBInsights. The report notes that this is taking place where integrated financial services are maturing, emerging, and plateauing.
This latest research report uses the CB Insights TECH Framework in order “to rank embedded finance markets based on current commercial readiness and momentum.”
Increasingly, CBInsights points out that consumers and businesses alike now “expect transactions to be fully digital and frictionless.”
To meet this demand, CBInsights explains that businesses “across industries are embedding financial tools — from buy now, pay later (BNPL) to insurance distribution — into their platforms.”
CBInsights also mentioned in its detailed report that “integrating these financial services can help not only improve customer engagement, but also drive new revenue streams and loyalty in the process.”
To help strategy teams prioritize embedded finance markets in their planning decisions, the researchers have recently “plotted markets using CB Insights’ TECH framework,” which scores markets across 2 dimensions:
- Market maturity — This assesses the commercial readiness of technologies in a given market using 30+ signals including patents, year founded, headcount, and Fortune 500 business relationships.
- Startup momentum — Measures private market activity as a signal of the degree of overall market dynamism & growth potential. It is calculated using the average Mosaic score. Signals include number of startups, investor quality, startups’ management team experience, and startups’ financial health.
The degree of market maturity and startup momentum suggests 1 of 4 planning approaches:
- Track: Nascent markets to put on the roadmap.
- Experiment: Newer markets that are gaining traction quickly. Consider for pilots or evaluation.
- Champion: Major markets that are still expanding to new areas. Continue to prioritize.
- Hold: Established markets that are less dynamic. Hold off on immediate action.
As covered in May 2024, CBInsights says that they mined earnings calls, analyzed business relationships, and dug into investments and acquisitions in order to survey the AI [artificial intelligence] activities of some of the world’s largest companies across industries.
For many of the world’s largest companies, AI simply can’t be ignored, the CBInsights team note in their latest research report.
Salesforce CEO Marc Benioff called AI “the single most important moment in the history of the technology industry” in the company’s most recent earnings call.
JPMorgan CEO Jamie Dimon said, in his April 2024 letter, “we are completely convinced the consequences [of AI] will be extraordinary.”
Others are hyper-focused on AI’s potential in order “to drive new efficiencies and product development. Big pharma companies are pushing ahead with AI-powered drug discovery collaborations, with the goal of accelerating drug development timelines.”
Payments giants, meanwhile, are leveraging AI “to fight back against a wave of fraud.”
Much of the hype around recent advances “has yet to translate to revenue.”
No AI-discovered drug has been “approved yet for sale (though Insilico Medicine brought the first drug fully generated by AI into human trials in 2023), and Salesforce acknowledged its latest AI push would not have a material impact on its revenue this year.”