# Middle Market Firms Struggle to Justify Tech Upgrades

> Middle market firms face biggest hurdles in linking financial tech investments to business strategy.
- Title: Middle Market Firms Struggle to Justify Tech Upgrades · Pymnts
- Summary: Middle market firms face biggest hurdles in linking financial tech investments to business strategy. 45% of middle market firms with $250m-$1b revenue say…
- Keywords: middle market, embedded finance, financial tech, strategic alignment, roi, revenue tier, embedded finance upgrades, business, finance, Middle, Market, Firms
- Source: Pymnts — https://pymnts.com/news/investment-tracker/fintech-investments/2026/middle-market-firms-struggle-most-to-justify-financial-tech-upgrades-pymnts-finds
- Author: PYMNTS
- Published: 2026-09-28T08:00:37+00:00
- Read time: 1 min
- Topics: middle market, embedded finance, financial tech, strategic alignment, roi, revenue tier, embedded finance upgrades, business, finance
## 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.
## Key takeaway

45% of middle market firms with $250m-$1b revenue say strategic alignment and ROI block embedded finance upgrades.