Embedded Finance Investments Climb Despite Rising Risks and Uncertainty

New study from Green Dot and Wakefield Research finds more than nine in 10 leaders plan to increase investments despite growing uncertainty around security, regulation, agentic AI and more

PROVO, Utah, October 15, 2026--Embedded finance is now a core growth strategy for U.S. companies, and leaders are doubling down despite rising risk and uncertainty, according to new research from Green Dot Corporation (NYSE: GDOT) and Wakefield Research. Nearly nine in 10 (89%) embedded finance decision-makers say banking-as-a-service (BaaS) and embedded finance are a "moderate" or "strong" driver of their companies' growth and competitiveness, and 91% plan to increase embedded finance investments over the next three years. At the same time, 74% say the risks of offering embedded finance have increased over the past two years.

"Embedded finance is creating meaningful opportunities for companies to grow, differentiate and deepen customer relationships, but those opportunities come with real responsibility," said Renata Caine, senior vice president and general manager, embedded finance at Green Dot. "With AI agents moving into fraud and identity, regulatory expectations evolving, and data security top of mind, the companies that win will be the ones building on a foundation of trust, compliance and clear accountability."

The findings, published in "Embedded Finance: Smarter, Faster, Higher Stakes," show a market that has moved past experimentation. The study surveyed 250 decision-makers responsible for embedded finance, spanning both BaaS providers and the companies that embed financial services. Highlights from the survey follow, with more detail in the full white paper.

Embedded Finance Continues Gaining Ground as a Growth Lever

Nearly nine in 10 leaders (89%) say BaaS and embedded finance capabilities are a moderate (55%) or strong (34%) driver of growth and competitiveness. Beyond new or recurring revenue (54%), leaders say embedded finance helps them differentiate from competitors (49%), attract new customers (47%) and reduce churn (44%).

Commitments are broad and steady. Three-quarters (75%) of leaders plan to moderately increase embedded finance investments over the next three years, and 16% plan a significant increase, while less than 1% plan to cut back. Leaders also see their partners keeping pace: 78% say BaaS providers have become better at meeting their industry's specific needs over the past two years.

Risks Are Rising, From Fraud to Regulation to Integration