The Rise of Ecosystem-Driven Finance

By Chantal Dupont, Business Risk Services | Director Advisory at Grant Thornton

The financial sector is undergoing a major transformation. Traditional boundaries between banks, insurers and technology companies are fading as customer expectations, digital innovation and sustainability requirements continue to evolve.

Historically, financial institutions focused mainly on products such as loans, accounts and insurance policies. Today, the emphasis is shifting towards integrated value creation.

Customers expect financial services to be seamless, personalised and socially responsible.

As a result, financial institutions are being pushed beyond their traditional role. “Beyond banking” is no longer a trend, but a strategic necessity in an increasingly ecosystem-driven economy.

Embedded Finance Is Reshaping Customer Interaction

One of the clearest developments is the rise of embedded finance. Financial services are now integrated directly into non-financial platforms at the exact moment customers need them.

Examples include:

• Instalment payments offered automatically during an online purchase

• SMEs accessing financing directly through accounting software

• Mobility apps combining payments, subscriptions and insurance within one platform

This creates a smoother customer experience while changing the role of financial institutions. Instead of operating solely as direct providers, they increasingly function as enablers within broader digital ecosystems.

This shift also drives new forms of collaboration. Partnerships with fintechs, technology firms and retailers are becoming essential, while large platform companies are expanding into financial services themselves.

At the same time, embedded finance creates challenges around customer ownership, compliance and data management. Even when onboarding takes place through third parties, institutions remain responsible for Know Your Customer (KYC) and Anti-Money Laundering (AML) requirements. Trust therefore becomes a key differentiator, especially regarding the secure use of financial data.

Open Banking Creates New Opportunities

Open banking is accelerating this ecosystem approach. Through APIs, financial institutions can share data and integrate services with external partners. While initially driven by regulation such as PSD2, open banking is now increasingly viewed as a strategic opportunity.

Banks can, for example, integrate payment solutions directly into e-commerce platforms, improving customer journeys while gaining access to new markets and valuable data. Combined data sources also support more personalised financial planning, lending and wealth management services.

However, open banking also increases complexity. Cybersecurity, data governance and GDPR compliance are becoming critical success factors. Financial institutions must decide which data they share, with whom, and whether they want to act as ecosystem orchestrators or specialised service providers.

Sustainability Moves to the Core of Financial Strategy

Alongside digital transformation, sustainability has become a central strategic priority. ESG criteria - Environmental, Social and Governance - now influence product development, investment decisions and risk management.

This is visible in products such as:

• Sustainability-linked loans tied to ESG targets

• Green mortgages for energy-efficient properties

• Impact investment funds focused on measurable societal outcomes

For example, companies may receive lower interest rates when reducing CO₂ emissions within predefined targets. These structures create direct financial incentives for sustainable transition.

Sustainability is also becoming integrated into risk models. Climate-related risks, including physical risks such as flooding and transition risks linked to changing regulation, increasingly influence lending and investment decisions.

Implementation remains challenging due to inconsistent data, varying sustainability definitions and complex regulation. The risk of greenwashing remains significant, despite frameworks such as the EU Taxonomy and SFDR aiming to improve transparency.

ESG Data Becomes a Strategic Asset

A major challenge within this transformation is the management of ESG data. Unlike traditional financial information, ESG data is often fragmented, incomplete and difficult to validate.

Financial institutions increasingly need data on emissions, energy performance, supply chains and sector-specific transition pathways to assess climate risk accurately. Many organisations still rely on external providers and estimates, making consistency difficult.

As a result, institutions are investing heavily in data transformation. They are integrating ESG information into central platforms, strengthening governance structures and using advanced analytics to improve reliability and reporting.

Importantly, ESG data is no longer used only for compliance purposes. It increasingly supports:

• Credit pricing

• Risk management

• Portfolio decisions

• Client advisory services

ESG is therefore evolving from a reporting obligation into a strategic value driver.

Integration Will Define Future Success

The common thread across these developments is integration. Embedded finance, open banking and ESG are no longer separate trends. Together, they are shaping a new financial ecosystem.

For example, a financial institution offering embedded finance within a real estate platform can also integrate ESG data to guide customers towards energy-efficient investments. This creates value that is both commercially and socially relevant.

Success in this environment requires more than technology alone. Financial institutions need a clear strategic vision, strong governance, advanced data capabilities and flexible collaboration models.

Organisations that successfully combine these elements position themselves not only as financial service providers, but as long-term strategic partners within broader ecosystems.

At Grant Thornton Advisory, we support financial institutions throughout this transformation, from strategic definition to practical implementation, with a strong focus on governance, risk and sustainable value creation.