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First-ever FIS Global Innovation Report: C-suite Sees Innovation As Matter of Survival

The inaugural FIS Global Innovation Report indicates top executives have a growing appetite for embedded and decentralized finance as well as “cautious optimism” with respect to cryptocurrencies.

According to information from FIS hosted by Yahoo! Finance, the first-of-its-kind report surveyed 2,000 senior and c-suite executives in a broad array of industries including fintech, banking, insurance, capital markets, gaming, digital content, travel and others. Himal Makwana, FIS’ global head of product strategy and web3, said the report shows companies in nearly every sector of the economy see innovation as critical not only as a means of growth, but of survival.

“As the threat of a global economic slowdown looms and businesses look for ways to thrive through the downturn, it is evident that unleashing growth requires focus, top-down executive support, a culture of innovation, and collaboration to anticipate and shape to consumer demand,” Makwana said in a statement. “Our findings show that many executives see decentralized finance, web3 infrastructure, digital assets and currencies as critical components of their long term strategy, both from a defensive and offensive perspective, to help lead the way into this next phase of the digital revolution.”

Of those surveyed, 44% of those working in the financial services industry said they expect significant investment in embedded finance products this year as consumer demand for such continues to grow. According to information from McKinsey & Company, embedded finance includes the “placing of a financial product in a nonfinancial customer experience, journey, or platform.” For example, nonbanks offering private credit cards at supermarkets, airlines and retail outlets, and auto dealerships offering financing options fall into this category.

Additionally, the FIS report also indicates close to two-thirds of those surveyed outside of the financial services industry said they believe it will be “strategically important” to develop some form of metaverse presence in the coming years. Further, environmental, social, and governance frameworks are also atop the minds of those interviewed as 60% of those asked said they expect to develop products and services to those ends.

From Twitter

Galileo Financial Technologies, LLC @GalileoFintech ·Jan 23

"63% of #B2B companies are already offering embedded finance as a solution to improve cash management, diversify revenue, and strengthen customer relationships. CRO Seth McGuire, shares his thoughts on this and more here https://bit.ly/3W4bAuZ #EmbeddedFinance #futureofmoney"

The report also explored the controversial and polarizing topic of cryptocurrency, which has experienced wild volatility both in value and public opinion in recent months and years. The opinions included in the survey ranged from “the most optimistic–who believe it is a major opportunity–to the most pessimistic–who see cryptocurrencies as an existential threat,” reads the FIS report.

Of those asked, one-third of respondents indicated they do noy have any interest in developing crypto services. While only 5% of those asked said they have ruled out offering crypto services, just 8% plan to develop these services in the next year, it adds.

“Embedded finance, crypto, DeFi and the metaverse are all significant industry transformations, and they’re developing faster than prior innovations. Those who make the right choices from the plethora of new technologies, innovations and trends at their disposal will dominate the markets of the future,” reads the conclusion of the report. “But as with all disruptive opportunities, there will be casualties too. Financial services organizations must implement clear strategies and devote the right talent and resources to these areas to be able to harness and adapt to the major innovations of our time.”

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