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The Death of Bank Branches and Rise of Embedded Finance

October 20, 2022 | 0 min read


As bank branches slowly fade away, Oracle predicts the embedded finance market is expected to exceed $7 trillion in the next 10 years, according to the recent Pardon the Finterruption discussion at Money Experience Summit 2022.    

Modeled after the popular ESPN talk show “Pardon the Interruption,” industry experts Jim Marous, co-publisher of The Financial Brand, and Ron Shevlin, Chief Research Officer at Cornerstone Advisors, talk through top trends and topics across finance and fintech. Top opportunities? Reaching consumers effectively with digital banking solutions and capitalizing on the opportunity of embedded finance.  

The Demise of Branches 

Branch closures across the U.S. increased to a record-breaking 38% in 2021, according to S&P Global Market data. This isn’t a new trend — the record broken in 2021 was set in 2020. 

“There is no role for branches in the future of banking,” Ron asserted. That’s not to say that human interaction is completely obsolete. There’s better technology available now to enable those interactions, Ron said. 

Some banks claim customers prefer an in-person banking experience. Jim challenged this idea and suggested it’s simply because banks don’t offer a quality digital banking experience. He invited banks to enhance their digital banking experience and adapt to digital finance.

Embracing Embedded Finance 

Jim’s warning to financial institutions looking to capitalize on the opportunity of embedded banking is simple: innovate processes for a digital future. Don’t simply digitize existing processes — change them completely.  

“You can’t have legacy systems in the back office and serve the future of embedded banking going forward,” Jim explained. 

Watch the full fast-paced discussion with Ron and Jim here: Pardon the Finterruption from Money Experience Summit 2022.

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