Key takeaways from webinar: Creating Value in a Platform Economy
Date: 16 May 2025
Author: FINTECH Circle
On May 13th, 2025, FINTECH Circle hosted an insightful webinar titled, “Creating Value in a Platform Economy” The session was led by Susanne Chishti, Founder & Chair of FINTECH Circle, alongside guest speaker Philipp Buschmann, Co-Founder & CEO of AAZZURR.
In the ever-evolving world of fintech, staying ahead of the curve requires a deep understanding of customer needs, market dynamics, and technological advancements.
In a recent panel discussion, industry leaders shared their insights on building successful fintech businesses, the importance of customer-centric strategies, and the future of embedded finance.
Here’s a comprehensive overview of the key topics covered during the session. takeaways:
1.Understanding Customer Differentiation and Speed to Market
One of the foundational principles for fintech startups is the need to go live quickly and scale rapidly. As one of the panelists emphasised, their company’s approach is to enable customers to launch as fast as possible and onboard users swiftly.
This speed-to-market strategy sets them apart, as many traditional players struggle with slow rollouts and cumbersome processes.
They noted that while customers often find it challenging to differentiate their offerings, those who can clearly articulate their value proposition stand to gain a significant competitive advantage.
2. Advice for Startups Integrating Embedded Finance
The discussion also addressed common challenges faced by startups looking to integrate embedded finance. Initially, these companies often work with a broad range of clients before focusing on a more refined target market.
A critical piece of advice for these startups is to prioritise customer acquisition over perfecting the technology. As one panelist pointed out, the most significant cost for financial businesses today isn’t necessarily technology development, but rather marketing and customer acquisition.
He highlighted the example of N26, which initially customers for as little as €5 each, while traditional banks often pay upwards of €100 per customer. This stark difference can be a compelling pitch to venture capitalists, as it directly impacts the startup’s ability to scale.
3. Conversion Rates in Embedded Finance
When asked about conversion rates for various embedded finance products, the panelists acknowledged that this is a complex topic. Conversion rates vary widely depending on the product and context.
For instance, a customer actively seeking a loan will convert at a much higher rate than someone passively encountering a loan offer within an unrelated app. The complexity of the financial product also plays a significant role.
Products like simple payments and digital wallets tend to convert more easily online, while complex financial products, like life insurance or long-term investment plans, often require a more personalised, human touch. This is where understanding the customer journey and context becomes critical.
4. Customer Engagement Phases: Explore, Configure, and Operate
Fintech companies often structure their customer interactions into three distinct phases: Explore, Configure, and Operate. In the Explore phase, the goal is to create a viable prototype within the first one to two months.
This stage involves working closely with clients to align on goals, define technical requirements, and ensure that the proposed solutions are feasible.
The Configure phase focuses on fine-tuning the solution to match the client’s specific needs, while Operate phase ensures seamless long-term functionality & ongoing support.
5. Balancing Global Scale and Regulatory Complexities
The panelists also discussed the challenges of scaling embedded finance solutions globally. One panelist shared a particularly complex case involving a global cash logistics company that wanted to pay employees worldwide using a single financial platform.
However, they quickly realized that cross-border data regulations, such as those in the EU, China, and the US, make this an extremely challenging proposition.
As a workaround, companies often opt for multiple localised platforms with unified user interfaces to comply with diverse data protection laws.
6. Licensing and Long-Term Customer Relationships
The discussion also touched on the importance of licensing for companies looking to own their financial relationships. While some businesses prefer to leverage third-party licenses through banking-as-a-service (BaaS) providers for rapid market entry, others opt to secure their own licenses over time to gain full control over their customer relationships.
The panelists noted that while some companies may eventually move away from BaaS models, many remain loyal to their initial providers if the quality of service remains high – a prime example being Revolut, which continues to work with its original processor despite having the capability to build its own infrastructure.
7. Cost of Building a Modern Challenger Bank
Finally, the panel concluded with a discussion on the costs of building a challenger bank. Today, the barriers to entry have significantly decreased, with the initial cost of launching a fintech platform dropping from tens of millions to as low as €500,000, depending on the scope of services offered.
This reduction in cost, combined with advancements in technology, has democratised financial innovation, allowing startups to challenge established players with lean, agile business models.
As the panelists emphasised, the future of fintech will be defined by those who can effectively balance technology, regulation, and customer experience to create innovative financial solutions at scale.
For entrepreneurs in the space, the opportunity has never been greater.
Final Thoughts: Success in Embedded Finance
Success in embedded finance isn’t just about building fast—it’s about building smart. By guiding customers through clear phases—from exploring ideas to configuring solutions and operating efficiently—businesses can avoid common pitfalls like regulatory hurdles and overcomplexity.
As Philip highlighted, focusing on a minimal viable product, understanding licensing needs, and leveraging proven platforms ensures a smooth, scalable journey.
Remember, strong partnerships and clear strategy alignment are the keys to unlocking lasting fintech innovation and growth.
Here are the key takeaways:
Phased Customer Engagement: Embedded finance projects work best when broken into Explore, Configure, and Operate phases, allowing focused development and smoother execution.
Start with a Prototype: Building a clear, minimal viable product early helps avoid overcomplexity and aligns stakeholders on realistic goals.
Regulatory Strategy Matters: Decide whether to hold your own financial licenses or rely on partners’ licenses early to navigate compliance effectively.
Global Expansion Challenges: International projects face major hurdles from data privacy laws, requiring multiple platforms rather than one unified system.
Use of Established Platforms: Leveraging existing banking-as-a-service providers accelerates time-to-market and creates sticky customer relationships through reliable service.
Watch the Full Webinar On-Demand below 👇👇👇
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