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# Borut Hrobat, Finmesh Co-founder: Lessons from Coop's Exit & Future of Embedded Finance for Retailers
- URL: https://www.embeddedfinancereview.com/podcasts/borut-hrobat-finmesh-cofounder-lessons-from-coop-s-exit-future-of-embedded-finance-for-retailers/
- Published: 2024-08-13T13:11:00.000Z
- Updated: 2025-11-16T13:17:05.000Z
- Description: Coop abandons Swiss banking venture after 9 months. Key success factors for retailers in embedded finance. Expert insights on implementation and pitfalls.
- Author: Lars Markull
- Tags: Podcast, Embedded Banking, Retail, Insurances, Slovenia, CEE, Enabler, Finmesh

After Swiss retail giant Coop shut down its banking product just nine months after launch, we discuss with industry expert and [Finmesh](https://finmesh.com/?%5Fbhlid=34be82e9642fba61baf849b870075426d15f4c34&ref=embeddedfinancereview.com) co-founder [Borut Hrobat](https://www.linkedin.com/in/boruthrobat/?%5Fbhlid=17f7f684102550142152bd693f68408281365da2&ref=embeddedfinancereview.com) why retailers fail or succeed in embedded finance, sharing crucial insights about implementation strategies, common pitfalls and future opportunities in the European retail sector.

## Key Insights on Coop's Banking Product Closure:

- Launched in October 2023 with planned offerings including bank accounts, debit cards, investments, and insurance products
- Most additional financial products beyond basic banking never materialized
- Decision to exit after only 9 months suggests possible strategic misalignment or implementation issues
- Product reportedly lacked proper integration into customer journeys and daily retail operations

## Best Practices for Retailers Entering Embedded Finance:

- Adopt a step-by-step approach rather than launching multiple products simultaneously
- Start with closed-loop payments, then progress to open-loop cards, charge cards, and credit products
- Secure strong top management commitment and cross-departmental support
- Focus initially on younger customer segments (Gen Z and millennials) with a digital-first approach
- Partner with license holders rather than pursuing own banking licenses
- Ensure proper integration with existing customer journeys and digital touchpoints

## Embedded Finance Benefits for Retailers:

- Potential to reduce payment processing costs by 0.5%, significantly impacting net profit margins
- Opportunity to enhance customer loyalty through integrated financial services
- Access to valuable customer behavior data both in-store and external
- Ability to create personalized offerings based on transaction data
- Possibility to improve marketing efficiency and customer retention

## Common Challenges:

- Internal organizational silos hampering implementation
- Need for strong data analytics capabilities
- Requirement for technical infrastructure investments
- Importance of maintaining long-term management support
- Challenge of properly embedding financial products into existing customer journeys

## Future Outlook:

- Larger retailers expected to lead the way in embedded finance adoption
- Smaller retailers likely to follow once successful examples emerge
- PSD2 services in Europe making implementation easier than in US markets
- Growing importance of data analytics and customer behavior understanding
- Increasing demand for embedded finance solutions across retail sector

## Expert Recommendations:

- Don't treat financial services as a standalone profit center
- Focus on supporting core retail business objectives
- Ensure proper integration with loyalty programs
- Invest in digital capabilities and data analytics
- Take time to build internal support and capabilities
- Learn from successful examples like Target's RedCard