Press release

Top UK retailers report positive revenue impact from embedded finance according to NatWest Boxed and BCG

20 March 20242 minute read

NWB Finance04 960x540

Leading UK retailers have reported incremental revenue growth as a result of embedded finance, according to a new report published by NatWest Boxed and Boston Consulting Group (BCG) today.

New research from leading retailers in the UK indicates that embedded finance could unlock a significant incremental revenue between 4-7%, according to a new report published by NatWest Boxed and Boston Consulting Group (BCG) today. 

Banking-as-a-Service (BaaS) allows retailers to partner with technology and/or banking providers to offer financial products and services to end-customers. When financial products and services are directly integrated by retailers into the customer journey, it is referred to as embedded finance. Retailers have reported a 5-12% boost in conversion rates, a 15-30% increase in average order values and a 4-7% incremental revenue growth overall from the use of embedded finance. 

Ecommerce has been a key driver of embedded finance growth, providing a widely adopted channel to reach customers. Research shows that segments with higher BaaS revenue tend to have higher ecommerce penetration of over 50%.

Technology platform capabilities and end-to-end customer support were identified as the top reasons for selecting a BaaS provider, more important than price. 

Andrew Ellis, CEO, NatWest Boxed:

“Embedded finance is reshaping the retail industry. With developments in cloud-native technology and product innovation converging, retailers are increasingly offering financial services and embedding them into customer journeys. But with an increasingly complex landscape of products, technology and suppliers to choose from, retail leaders need to ensure they focus on the right services with a trusted and secure BaaS partner to maximise the opportunity.” 

Mark Dynes, Managing Director & Partner, BCG:

“BaaS and embedded finance is enabling all types of retailers to become a distributor of financial services. As our research shows, retail leaders can rely on embedded finance to meet a broader set of customer needs and maintain control of critical brand experiences. The results have been game changing, with a compelling impact on conversion, basket sizes and long-term engagement.”

‘Bridging Finance & Retail: The Power of Banking-as-a-Service’

The report explores: 

  • The revenue potential for retailers from the use of embedded finance, with a focus on fashion, home improvement and marketplaces sub segments.

  • The key enablers driving the growth of embedded finance, including the correlation between ecommerce penetration and BaaS revenues across retail segments. 

  • How embedded finance has enabled an evolving credit value chain, with credit cards at risk of cannibalisation vs POS financing which shows growth potential. 

  • How retailers can get started with their embedded finance journey, focusing on identifying customer needs, choosing the right products and services and identifying a BaaS provider that has a clear understanding of the business’s customers, products, technologies and operational context and requirements. 

  • The range of BaaS providers in the market today offering an array of capabilities. When selecting a BaaS provider, technology platform capabilities and end-to-end customer support were identified as the top selection criteria, more important than price.

  • In-house vs. capabilities provided by BaaS providers: Retailers interviewed chose to retain the front-end UI / UX, customer journeys, marketing and branding, all in-house, leaving responsibility for the back-end technology, regulatory expertise and operations to the provider. 

To read the full research, download the white paper here


Notes to editor

Methodology: Interviews were carried out by BCG with 21 leading large retailers in the UK between October to November 2023.

About NatWest Boxed

NatWest Boxed offers a cloud-native Banking-as-a-Service platform that enables brands and fintechs to seamlessly offer financial services to their customers, securely and at scale. Boxed was established in 2022, through a strategic partnership between NatWest and Vodeno to create a new Banking-as-a-Service business in the UK.

Combining our technology stack, banking licence, compliance expertise and operational support, our vision is to power the UK’s best embedded financial experiences. Today, we employ more than 500 people across locations in UK and Poland. For more information, visit

About BCG

Boston Consulting Group partners with leaders in business and society to tackle their most important challenges and capture their greatest opportunities. BCG was the pioneer in business strategy when it was founded in 1963. Today, we work closely with clients to embrace a transformational approach aimed at benefiting all stakeholders – empowering organisations to grow, build sustainable competitive advantage, and drive positive societal impact.

Our diverse, global teams bring deep industry and functional expertise and a range of perspectives that question the status quo and spark change. BCG delivers solutions through leading-edge management consulting, technology and design, and corporate and digital ventures. We work in a uniquely collaborative model across the firm and throughout all levels of the client organisation, fuelled by the goal of helping our clients thrive and enabling them to make the world a better place.

Copy link
Copy link