ClearBank has shared embedded banking ROI insights from the Forrester Report.
ClearBank has, from its inception, been focused on “providing the infrastructure that enables firms to innovate, differentiate and grow.”
A core element of that vision is the Embedded Banking proposition “that offers firms the ability to launch high-quality services leveraging our banking license and infrastructure.”
ClearBank collaborate with innovative financial institutions in order “to bring their vision to life, saving them the time and cost of becoming a bank.”
But how do you calculate those savings and understand the real-world benefits it delivers?
ClearBank wanted to examine the value “that Embedded Banking can deliver with meaningful, real-world data.”
That led us to working with leading consultancy firm Forrester and its Total Economic Impact (TEI) model that reportedly “delivers an independent, proven and recognized model.”
The TEI methodology has been used “for over 20 years by technology consumers and technology organizations.”
Every TEI study is based on “due diligence, independent customer interviews and primary research, and a financial model framework including benefits, costs, flexibility and risks.”
It is said to be “a proven industry-standard framework that models all aspects of a piece of technology or solution and the associated impacts on the business and illustrates the ROI of products and services.”
Below ClearBank’s management summarize its findings.
90% ROI: showcasing ongoing financial returns
The Forrester report’s detailed analysis “of ClearBank Embedded Banking provides a clear picture of the substantial financial returns.”
With a 90% ROI, ClearBank demonstrates its ability “to enhance profitability and drive significant value for its clients.”
The report also underscores the impact of ClearBank’s innovation and “evidence that investing in Embedded Banking can deliver significant benefits.”
Forrester’s analysis considered various factors “that contribute to this high ROI.”
By leveraging ClearBank Embedded Banking organizations can “streamline their operations, reduce costs, and introduce new revenue-generating products.”
The research emphasizes the “long-term benefits of ClearBank Embedded Banking.”
The headline ROI figure highlights how the financial advantages “extend well beyond immediate gains, providing fintech organisations with a robust financial foundation for sustained growth.”
It also serves as a testament “to ClearBank’s effectiveness in delivering value over the long term.”
The Forrester report also highlights “the rapid 10-month payback period. That means organizations can swiftly recoup their initial investments and begin reaping the financial benefits.”
This rapid return on investment further reinforces ClearBank’s position “as a leader in the embedded banking sector, offering solutions that not only deliver long-term value but also provide immediate financial gains.”
Based on client interviews and market analysis, the Forrester report attributed “increased incremental profits of £9.7 million from product expansion and cross-selling to ClearBank Embedded Banking.”
This was due to the organisation “offering instant-access savings accounts to its existing investment customers, attracting and onboarding net-new customers via savings accounts, and cross-selling other services.”
Forrester’s report revealed these firms “saw a reduction “in customer churn due to faster inbound and outbound payments, FSCS eligibility, and improved user experience.”
Customers can invest and deposit money more confidently “since their deposits are, subject to eligibility, protected up to £85,000.”
They can withdraw money instantly and “use Confirmation of Payee (CoP) before completing a payment transaction, providing additional certainty that funds have been sent to the correct account.”
These benefits were further compounded “by significant operational efficiency gains.”
For example, Forrester calculated “that the organisation saved nearly £63,000 through the reduction of service desk tickets.”
This is a direct result of the customer services team “experiencing a 10% reduction in monthly service desk tickets opened by customers.”
