From Pymnts · PYMNTS · · 1m 20s
Middle Market Firms Struggle to Justify Tech Upgrades
Middle market firms face biggest hurdles in linking financial tech investments to business strategy.
In brief
Middle market firms face biggest hurdles in linking financial tech investments to business strategy. 45% of middle market firms with $250m-$1b revenue say strategic alignment and ROI block embedded finance upgrades. Originally reported by Pymnts.
Middle market firms report biggest obstacles
Middle market companies with $250 million to $1 billion in annual revenue cite strategic alignment, decision making and return on investment as the primary obstacle to financial tech upgrades.
Embedded finance adoption patterns
45% of middle market firms report strategic alignment as an obstacle compared with 24% of firms below $250 million in revenue.
Operating model diversity
32% of middle market firms build embedded finance in-house, 33% use one external provider and 35% use multiple third parties for embedded finance capabilities.
Upgrade plans remain high
79% of middle market firms plan to upgrade embedded finance within 12 months, nearly matching the 80% rate among firms below $250 million in revenue.
Partner requirements vary
32% of middle market firms require embedded finance partners to hold a bank charter, the highest rate among all revenue tiers.
Implementation challenges
Middle market firms face elevated concerns about strategic alignment and ROI, making business case, operating model and partner structure part of the same implementation decision.
The headline
45% of middle market firms with $250m-$1b revenue say strategic alignment and ROI block embedded finance upgrades.
