Consulting firms are the architects of change in the business world, offering insights and solutions that guide companies toward growth and success. They navigate the intricate landscape of markets and industries, providing invaluable advice to their clients. In this evolving milieu, an opportunity is arising as embedded finance enters the scene, creating a unique and prospectively vital synergy between consultants and platform providers like Toqio.
We’ve observed that embedded finance, especially B2B embedded finance, is a hot topic right now among consultancies. That suits us just fine, we’ve been advocating the concept for a while now. From what we’ve seen over the last year, the outlook is actually quite positive.
To date, much of the initial traction in embedded finance has been in the consumer sector, with products such as no- or low-interest financing, buy-now-pay-later (BNP), and others. On the B2B side, there is an increasing amount of mobilization:
- Incumbent banks have either entered the BaaS market or are enabling their services through open banking.
- Strategy firms have been busy advising corporate entities on the potential routes they can take.
- MVPs and proofs of concepts have been on the rise.
- Early adopters have already made embedded finance a cornerstone of their digital or financial transformation programs.
So, what’s next? As we all peer forward, the market is starting to look for scalable use cases to take advantage of these big, predicted opportunities. They’re basically searching for solutions that go beyond the hype.
For consulting firms, the messaging remains positive. The fundamentals of embedded finance drive strong service revenue. Even more importantly, the business cases for their clients stack up as well. Numerous opportunities are on the table when consultants incorporate Toqio into their projects, including increased revenue, improved retention rates, access to a wider range of data for better decision making, increased loyalty generation, simple and easy to use system integration and orchestration, and many more. Take a look:
Further, those same clients will find themselves able to select from a wide array of financial levers that they can incorporate into their project in order to generate revenue, including interest on balances or balance sheet lending, loan commissions, card fees, and others. They can take advantage of as many levers as they like, in line with their goals and their target users.
The scale of the potential benefits is key. Honestly, the bigger the prize, the bigger the transformation program a company is willing to fund to get there.
The embedded finance platform advantage
Embedded finance platforms like Toqio are proving to be the latest addition to the consultant’s toolkit. They offer a wide array of solutions that enable businesses to integrate financial services into their products and services. What makes embedded finance platforms especially appealing to consultants is their adaptability and scalability.
Consulting firms understand the need for versatile solutions capable of addressing various business requirements. Toqio has certainly risen to this challenge, offering the ability to streamline and enhance B2B financial operations, including payment processing, lending, and the integration of many other financial services. Versatility and adaptability are key, giving consultants the flexible tools they need to deliver excellent results.
Alignment with embedded finance platforms
Embedded finance platforms are a natural extension of consulting firms’ capabilities. Platforms like Toqio offer a comprehensive range of financial solutions that integrate into businesses’ existing processes perfectly. This alignment provides consulting firms with several advantages:
Enhanced client services
Embedded finance platforms empower consultants to offer a broader spectrum of services. They can address intricate financial operations, ensuring that clients receive end-to-end solutions.
Data-driven insights
Consultants thrive on data, and embedded finance platforms, especially Toqio, provide a treasure trove of insights. They facilitate the collection and analysis of financial data, offering a data-driven approach to decision-making.
Streamlined processes
The integration of embedded finance solutions streamlines financial processes, simplifying project management and allowing consultants to achieve more with less effort.
Scalability and versatility
Embedded finance platforms are designed to accommodate businesses of all sizes. Consultants can work with small startups and large corporations, tailoring financial solutions to meet diverse needs. At Toqio, we offer a platform where the initial offering is fairly simple and uncomplicated but with plenty of room for customization and growth as the product takes off.
How consulting firms benefit from embedded finance platforms
The compatibility between consulting firms and embedded finance platforms is readily apparent. Consultants excel at diagnosing business issues, and platforms like Toqio provide a precise prescription for financial enhancements. Here’s how consulting firms benefit:
Diversified services
Embedded finance platforms augment the services that consultants offer. They allow consultants to present clients with solutions for intricate business ecosystem operations, such as payment processing, receivables management, and liquidity optimization.
Efficiency and simplicity
Though embedded finance platforms should be adept at simplifying financial processes, we can only speak to what Toqio can do. We streamline project execution and that can help consultants and their clients save time and resources. By introducing an embedded finance platform to clients, consulting firms can enhance efficiency and productivity.
Revenue generation
Partnering with an embedded finance platform can open up new revenue streams. On Toqio, for example, we offer a Marketplace where custom financial service modules built by reputable providers are housed. If a consultant’s clients decide to go the same route, they’re welcome to do the same, thereby exploiting previously untapped revenue.
Scalability
Embedded finance platforms are designed to be scalable and incredibly versatile. Consultants can use them to address the unique needs of any size project, whether working with a small business or a multinational enterprise.
Client satisfaction and retention
By introducing embedded finance solutions, consulting firms can strengthen client relationships. The ability to provide trustworthy financial solutions that are easily integrated fosters trust and loyalty among clients.
The symbiosis is hard to ignore
The relationship between consulting firms and embedded finance platforms isn’t just about expanding services, it’s about offering integrated financial solutions that improve efficiency, profitability, and competitiveness. This partnership drives results.
In a world where businesses seek comprehensive solutions, embedded finance platforms empower consulting firms to address complex financial challenges effectively. A partnership between a consulting firm and an embedded finance platform like Toqio offers a path to success that is rewarding for all the parties involved.
If you need to look into the matter further, here’s some recommended reading:
Mckinsey – “Embedded finance: Who will lead the next payments revolution?”
BCG – “Global Fintech 2023: Reimagining the Future of Finance”
Bain – “Embedded Finance: What It Takes to Prosper in the New Value Chain”