Whether it’s about agility, collaboration or strategic planning, the Olympics offers insights that can help lenders stay competitive and thrive in the ever-evolving embedded lending landscape.
1. Agility and Adaptability: The Key to Staying Ahead
Olympic athletes are renowned for their ability to adapt to different conditions, be it weather, competition or even unexpected challenges. This agility is a critical trait for lenders in 2024. The financial landscape is rapidly changing, with new technologies, regulations and consumer preferences emerging frequently. Lenders must be prepared to pivot quickly, adopting new strategies and technologies to meet the needs of their customers.
A prime example of this is the adoption of digital wallets, which have become the world’s fastest-growing payment method. Apple Pay alone has 500 million users globally. This presents a tremendous opportunity for banks and lenders that have the ability and agility to provision their consumer loans into the world’s leading digital wallets, particularly since Apple Pay has discontinued Apple Pay Later.
2. Collaboration and Teamwork: Strength in Unity
One of the most inspiring aspects of the Olympics is the emphasis on teamwork. From relay races to synchronized swimming, athletes must work together seamlessly to achieve success. Similarly, lenders can benefit from collaboration, whether it’s partnering with fintech companies, leveraging embedded lending solutions or working with financial service providers to expand their offerings.
By embracing collaboration, lenders can create more comprehensive and innovative solutions that better serve their customers, deliver cost-efficiency and help them stand out in a crowded market.
3. Strategic Planning: Winning Starts Long Before the Competition
Olympic athletes don’t just show up on the day of the event; they spend years planning and training for their moment of glory. Lenders, as well as merchants, should take the long-term strategic view to embedded lending. In 2024, this means staying ahead of BNPL regulatory changes, anticipating shifts in consumer behavior and investing in the right technologies to enhance the customer experience.
Embedded lending should be viewed not just as another revenue stream – it is also a valuable new-to-bank customer acquisition channel and long-term brand-building tool.
4. Focusing on Strengths: Be the Best at What You Do
Just as Olympic athletes excel by focusing on their specific disciplines, lenders should hone in on their core strengths rather than trying to be the best at everything. In the world of finance, a bank’s strengths lie in its lending capabilities, balance sheet management and underwriting expertise. By concentrating on these areas, banks can deliver exceptional value to their customers.
Instead of diverting resources to become tech innovators, banks can partner with technology companies that specialize in developing cutting-edge solutions. This collaboration allows banks to offer top-tier financial products without the burden of building and maintaining complex tech infrastructures themselves. By focusing on what they do best and leveraging the strengths of tech partners, banks can achieve greater efficiency, innovation and customer-centricity.
5. Customer-Centric Approach: Building Long-Lasting Relationships
At its core, the Olympics is about people—about each athlete building their personal brand through their athletic prowess as well as how they conduct and present themselves to the audience throughout the competition. Similarly, lenders must adopt a customer-centric approach in 2024. This involves understanding the unique needs of different customer segments, providing personalized financial solutions and ensuring a seamless user experience across all touchpoints.
Lenders who prioritize their customers will not only build stronger relationships but also foster loyalty and trust in a competitive market.
Going for Gold in Embedded Lending
By focusing on agility, collaboration, strategic planning, innovation and their core strengths, lenders can position themselves for success in the financing and lending space.
Looking to stay ahead in the competitive world of embedded lending? Contact one of our experts to learn how we can help you leverage the latest technologies and strategies to achieve your goals.
