The questions you MUST ask before adopting embedded finance

Reading time: 4 min

    Add a header to begin generating the table of contents
    Ian Hawkins

    Page written by Ian Hawkins. Last reviewed on June 13, 2024. Next review due April 6, 2025.

      Add a header to begin generating the table of contents
      Read this article to me

      If you think embedded finance solutions are the next big thing you’re wrong: they’ve already driven a huge spike in sales online. A recent publication by Bain states that embedded finance solutions are anticipated to surpass $7 trillion by 2026, a figure which includes embedded lending, projected to reach between $80 billion and $90 billion.

      If you’re seeking to onboard or change an embedded finance solutions provider, you will need to ensure you’re getting the right one: loyalty can be lost very quickly online, so Swoop has put together the most important questions you can ask before you embed finance on your marketplace.  

      What types of embedded finance services do you offer?

      Understand the range of financial services the provider offers, such as lending, payments, insurance, or credit scoring. Ensure their services align with your marketplace’s needs and goals.

      How do your services integrate with our platform?

      Inquire about the technical aspects of integration. Ask whether they offer APIs, SDKs, or other integration tools and how these can be customised to fit your platform seamlessly.

      What Is the onboarding process for sellers?

      Learn about the onboarding process for your sellers. How easy is it for them to access and use the financial services offered? Does the provider offer support and resources to assist sellers in getting started?

      What Is the cost structure?

      Understand the pricing model, including fees, transaction costs, and any revenue-sharing arrangements. Ensure the pricing aligns with your budget and business model.

      How do you handle compliance and regulatory requirements?

      Ask about the provider’s compliance processes and how they ensure adherence to financial regulations, including anti-money laundering (AML) and know your customer (KYC) requirements. Verify that they are licensed or regulated as needed in your jurisdiction.

      What security measures are in place?

      Inquire about their security protocols to protect sensitive financial and user data. Ask about encryption, data storage, and authentication methods to ensure robust security.

      How do you handle fraud detection and risk management?

      Understand the provider’s approach to fraud detection and risk management. What tools and strategies do they employ to minimise fraud and protect both sellers and buyers?

      What reporting and analytics tools do you provide?

      Explore the reporting and analytics capabilities of the provider. Can you access data on transaction volumes, customer behaviour, and other relevant metrics to make informed decisions?

      Do you offer customer support and service level agreements (SLAs)?

      Evaluate the level of customer support the provider offers. Are they available to assist with technical issues, seller inquiries, or dispute resolution? Ask about SLAs to ensure timely support.

      What is your track record and reputation?

      Research the provider’s history and reputation in the industry. Look for reviews, testimonials, and case studies from other businesses that have integrated their services.

      Can you provide references or client success stories

      Request references or success stories from other marketplaces or businesses that have used their services. This can give you insights into their performance and client satisfaction.

      What Is your scalability and global reach?

      If you plan to expand internationally, inquire about the provider’s ability to scale and operate in different regions. Understand their global reach and support.

      How do you handle disputes and issue resolution?

      Learn about their procedures for handling disputes between buyers and sellers related to financial transactions. Understanding their dispute resolution process is essential for maintaining trust in your marketplace.

      What future developments and upgrades can we expect?

      Ask about their roadmap for future developments and upgrades to ensure their solutions can grow with your marketplace’s needs and keep up with industry trends.

      Embedded finance offers marketplaces an opportunity to supercharge their revenue and profits. Handled right, it’s also an opportunity to deliver benefits along the whole chain, from marketplaces to vendors and customers. 

      Making sure that your first step is the right one as changing providers could be disruptive, expensive and leave a lot of disappointment and confusion in its wake. 

      Swoop is offering marketplaces an opportunity to discuss their needs – book in a call today. 

      Like what you see? Share with a friend.

      Written by

      Ian Hawkins

      Ian Hawkins is Head of Content at Swoop. As a freelance business journalist and filmmaker he has reported from Europe, Central and North America and Africa. His films and writing have appeared on BBC World, Reuters and CBS, and he has spoken at conferences on both sides of the Atlantic on subjects including data, cyber security, and entrepreneurialism.

      Swoop promise

      At Swoop we want to make it easy for SMEs to understand the sometimes overwhelming world of business finance and insurance. Our goal is simple – to distill complex topics, unravel jargon, offer transparent and impartial information, and empower businesses to make smart financial decisions with confidence.

      Find out more about Swoop’s editorial principles by reading our editorial policy.

      Ready to grow your business?

      Clever finance tips and the latest news

      Delivered to your inbox, every week
      Join the 70,000+ businesses just like yours getting the Swoop newsletter.
      Free. No spam. Opt out whenever you like.

      Clever finance tips and the latest news

      delivered to your inbox, every week

      Join the 70,000+ businesses just like yours getting the Swoop newsletter.

      Free. No spam. Opt out whenever you like.

      We work with world class partners to help us support businesses with finance

      Looks like you're in . Go to our site to find relevant products for your country. Go to Swoop No, stay on this page