🇫🇮 Finnish card infrastructure provider Enfuce explains why downturns are ideal to start EF
It is probably not a surprise that a company that wants to sell you software for launching Embedded Finance products is telling you that now is the right time to launch Embedded Finance. And Enfuce is obviously not the only infrastructure provider who has shared such believes. You are probably also not surprised that I have a similar opinion.
However, I think what we agree on is that venture funded companies have to identify their individual best way to optimise (or stretch) their runway. This means cutting costs or increasing revenue. Or perhaps both.
Companies can increase revenues either by growing their customer base or by increasing the revenue per existing customer. Every company will be aiming to do both and Embedded Finance is a potential strategy to achieve the latter of both options. I have written how companies can make additional revenue with Embedded Finance.
However, the path to a successful Embedded Finance proposition can be complex and can take long. There is no guarantee that every company will be able to make additional revenue in the short term.
But startups need to continue to make bets. They cannot take any bet, so they need to choose based on probability and investment required. The outcome of a bet will somehow always be uncertain. But what has changed is that building Embedded Finance products only cost a fraction compared to a few years ago. This means that building financial products is not just for companies who have big budgets and very high conviction of succeeding. Many more companies can explore Embedded Finance. And perhaps right now is a good time to do so.
