Customers seek financial solutions from mobility providers, finds Solaris
Built-in financial platform, Solaris, has detailed the development of embedded finance in a new report. The report looks at the market potential for the mobility sector across Europe.
The study entitled ‘On the move: The embedded financing opportunity in the mobility sectorwas carried out in collaboration with Handelsblatt research institute. The report analyzes the market potential for the mobility sector in the four largest European markets: Germany, France, Italy and Spain.
Of these four markets, Italy emerged the strongest with 61.8 percent of respondents saying they would use embedded financial services from a mobility provider.
After Italy, the remaining markets ranked as follows:
2) Spain: 51.3 percent
3) Germany: 36.1 percent
4) France: 33.3 percent
To determine the potential of all markets, the study analyzed 25 of the most popular mobility providers in each country. To achieve this, Solaris conducted an online survey with the Handelsblatt Research Institute and YouGov Deutschland GmbH.
Using this survey data, Solaris detailed the correlation between brand attributes and the likelihood of using financial services from a mobility provider. It found that a digital approach is attractive to some customers, but the most important factor is trust.
The survey also found that the higher respondents rated the safety and reliability of a mobility brand, the more likely they would be to use a financial service from the same brand.
Mobility providers must embrace embedded financing solutions
Chloe Mayenobe, growth manager at Solaris, gave his view on the results. She said: “The study results are consistent with our previous market research and confirm our experience in the field. The interest of mobility providers in embedded finance has increased noticeably.
“We have already been able to enter into exciting partnerships in Europe. For many of these brands, it is a challenge to understand how to best utilize their ecosystem and build a profitable business case. Therefore, this time we have also looked at the question of whether certain brand characteristics are promising and examined individual age groups.”
Solaris previously published its first report on the new trend in embedded finance and the market potential. In this, mobility was identified as one of the most promising cutting-edge industries.
Mayenobe talked about what mobility providers must take into account to ensure growth in the future. She explained: “Sustainable growth of mobility providers in the coming decades will only succeed by building customer-centric ecosystems.
“Above all, built-in and customized financial services will provide a decisive competitive advantage. They can increase customer retention, increase the number of touch points and create new revenue streams. Based on our study, it is safe to say that another success factor is brand trust, and therefore cooperation with a regulated platform like Solaris is key.”
