{"id":272,"date":"2022-12-13T10:28:16","date_gmt":"2022-12-13T18:28:16","guid":{"rendered":"https:\/\/embedded.gusto.com\/blog\/?p=272"},"modified":"2023-12-13T14:20:44","modified_gmt":"2023-12-13T22:20:44","slug":"evolving-smb-demands-drive-embedded-fintech-and-all-in-one-solutions","status":"publish","type":"post","link":"https:\/\/embedded.gusto.com\/blog\/evolving-smb-demands-drive-embedded-fintech-and-all-in-one-solutions\/","title":{"rendered":"Evolving SMB demands drive embedded fintech and all-in-one solutions"},"content":{"rendered":"<h2><span style=\"font-weight: 400;\">New research on <\/span><span style=\"font-weight: 400;\">key trends for embedded fintech and payroll.<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">In spite of recent economic conditions, vertical SaaS remains the darling of the software world. SMB customer demand for embedded fintech in all-in-one solutions continues to drive this evolution forward.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For SaaS platforms serving SMBs, keeping up with these changes can take time and effort. But, to stay competitive during these times \u2014 adding value for existing customers while growing your customer base \u2014 it&#8217;s vital to understand the attributes driving customer decisions.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To help SMB platforms businesses understand the characteristics that create value and drive spending for <a href=\"https:\/\/embedded.gusto.com\/blog\/embedded-finance-trends-benefits-and-growth-potential\/\" target=\"_blank\" rel=\"noopener\">embedded payroll<\/a> and fintech strategies, Gusto partnered with Qualtrics to survey 400+ small- to mid-size businesses \u2014 plus interviewed 30 business owners to understand their challenges and pain points. The goal was to understand the following:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">What do SMBs look for in bundled solutions (i.e. all-in-one)?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">How loyal are customers to their existing payroll providers?<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">What do budgets look like across the business process application spectrum?<\/span><\/li>\n<\/ul>\n<p><a href=\"https:\/\/mailchi.mp\/7911e25c2a1e\/embedded-payroll-research-report\"><span style=\"font-weight: 400;\">Download the report. Evolving SaaS Environments: Are You Ready for All-in-One?<\/span><\/a><\/p>\n<h2><span style=\"font-weight: 400;\">Three Key Trends:<\/span><\/h2>\n<p><b>A majority of SMBs (70%) are looking to switch to more integrated solutions.\u00a0<\/b><\/p>\n<p><span style=\"font-weight: 400;\">In our survey, 94% of the respondents are very satisfied or somewhat satisfied with their current payroll and HR solutions. However, 70% of respondents said they are somewhat or very likely to switch to new software. So why are customers willing to change?<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">They want one system of record to simplify management and billing.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">They want embedded solutions from providers that know their industry.<\/span><\/li>\n<\/ul>\n<p><i><span style=\"font-weight: 400;\">&#8220;Because I believe software created by people in my line of work will be most effective for my business.&#8221;<\/span><\/i><span style=\"font-weight: 400;\"> \u2014 <a href=\"https:\/\/embedded.gusto.com\/\">Gusto Embedded<\/a> Survey Participant<\/span><\/p>\n<p><img decoding=\"async\" class=\"aligncenter wp-image-273 size-full lazyload\" data-src=\"https:\/\/embeddedblog.wpengine.com\/wp-content\/uploads\/2022\/12\/image6.png\" alt=\"\" width=\"1166\" height=\"256\" data-srcset=\"https:\/\/embeddedblog.wpengine.com\/wp-content\/uploads\/2022\/12\/image6.png 1166w, https:\/\/embeddedblog.wpengine.com\/wp-content\/uploads\/2022\/12\/image6-425x93.png 425w, https:\/\/embeddedblog.wpengine.com\/wp-content\/uploads\/2022\/12\/image6-150x33.png 150w, https:\/\/embeddedblog.wpengine.com\/wp-content\/uploads\/2022\/12\/image6-768x169.png 768w\" data-sizes=\"(max-width: 1166px) 100vw, 1166px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1166px; --smush-placeholder-aspect-ratio: 1166\/256;\" \/><\/p>\n<p><b>SMBs want reliable, all-in-one solutions created by experts in their industry.<\/b><\/p>\n<p><span style=\"font-weight: 400;\">SaaS customers want multi-platform products that solve many business operations and financial service needs. SMBs care most about reliability when it comes to payroll and HR, followed closely by industry expertise, ease of use, price, and integration with other apps are also top of mind.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The data shows variations by vertical industry. For example, food and beverage respondents consider reliability and ease of use relatively more critical, while personal services and fitness value industry expertise, integrations, and payroll expertise more.<\/span><\/p>\n<p><img decoding=\"async\" class=\"aligncenter wp-image-274 size-full lazyload\" data-src=\"https:\/\/embeddedblog.wpengine.com\/wp-content\/uploads\/2022\/12\/image5.png\" alt=\"\" width=\"1030\" height=\"436\" data-srcset=\"https:\/\/embeddedblog.wpengine.com\/wp-content\/uploads\/2022\/12\/image5.png 1030w, https:\/\/embeddedblog.wpengine.com\/wp-content\/uploads\/2022\/12\/image5-425x180.png 425w, https:\/\/embeddedblog.wpengine.com\/wp-content\/uploads\/2022\/12\/image5-150x63.png 150w, https:\/\/embeddedblog.wpengine.com\/wp-content\/uploads\/2022\/12\/image5-768x325.png 768w\" data-sizes=\"(max-width: 1030px) 100vw, 1030px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1030px; --smush-placeholder-aspect-ratio: 1030\/436;\" \/><\/p>\n<p><span style=\"font-weight: 400;\">The report goes into greater depth in several industries as well as by size of company. For example, smaller businesses tend to want more tailored solutions because they have fewer resources to dedicate to customizing and integrating horizontal platforms.<\/span><\/p>\n<p><b>Customers are willing to pay for additional embedded services.<\/b><\/p>\n<p><span style=\"font-weight: 400;\">For SMBs, budgeting for software is critical to running a successful business. These applications do the heavy lifting for many of their business processes. Our survey participants showed a wide range of total spend from $1,000 to $3,000 annually.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As you can see by the following chart, POS and Accounting have the highest annual spend, with the rest of the business process apps coming in around the same annual cost for SMBs.<\/span><\/p>\n<p><img decoding=\"async\" class=\"aligncenter wp-image-275 size-full lazyload\" data-src=\"https:\/\/embeddedblog.wpengine.com\/wp-content\/uploads\/2022\/12\/image4.png\" alt=\"\" width=\"1100\" height=\"392\" data-srcset=\"https:\/\/embeddedblog.wpengine.com\/wp-content\/uploads\/2022\/12\/image4.png 1100w, https:\/\/embeddedblog.wpengine.com\/wp-content\/uploads\/2022\/12\/image4-425x151.png 425w, https:\/\/embeddedblog.wpengine.com\/wp-content\/uploads\/2022\/12\/image4-150x53.png 150w, https:\/\/embeddedblog.wpengine.com\/wp-content\/uploads\/2022\/12\/image4-768x274.png 768w\" data-sizes=\"(max-width: 1100px) 100vw, 1100px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1100px; --smush-placeholder-aspect-ratio: 1100\/392;\" \/><\/p>\n<h2><span style=\"font-weight: 400;\">So why should you have a roadmap focused on offering embedded fintech in all-in-one solutions?<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">When you look at these trends in aggregate, you can see the opportunities that embedded financial services, including payroll, can offer. Why? Because SMBs need operational and financial services that are critical to their business success.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">&#8220;In the future, we can expect more vertical SaaS companies to layer tech-enabled services onto their core SaaS offering to provide additional value to the customer and to expand their TAM.&#8221;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">JP Gschwind, Principal, <\/span><a href=\"https:\/\/www.fractalsoftware.com\/\"><span style=\"font-weight: 400;\">Fractal Software<\/span><\/a> <a href=\"https:\/\/www.fractalsoftware.com\/perspectives\/state-of-vertical-saas-2022\"><span style=\"font-weight: 400;\">State of Vertical SaaS 2022<\/span><\/a><\/p>\n<p><span style=\"font-weight: 400;\">Embedded fintech has opened the door for a broader range of all-in-one solutions. Most vertical apps are partially there by taking payments, issuing credit cards, or<\/span> <span style=\"font-weight: 400;\">connecting with bank accounts. Adding new features and functionality to grow is an ongoing trend for most vertical apps that serve SMB customers. This report adds evidence to this trend leaders can use to direct their strategy and roadmap.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As you work on your product strategies and roadmap, use the <\/span><a href=\"https:\/\/mailchi.mp\/7911e25c2a1e\/embedded-payroll-research-report\"><span style=\"font-weight: 400;\">Evolving SaaS Environments: Are You Ready for All-in-One?<\/span><\/a><span style=\"font-weight: 400;\"> to better understand the value of in-app payroll and validate your embedded fintech strategy.<\/span><\/p>\n<p><a href=\"https:\/\/mailchi.mp\/7911e25c2a1e\/embedded-payroll-research-report\"><span style=\"font-weight: 400;\">Download the report. Evolving SaaS Environments: Are You Ready for All-in-One?<\/span><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>New research on key trends for embedded fintech and payroll. In spite of recent economic conditions, vertical SaaS remains the&#8230;<\/p>\n","protected":false},"author":11,"featured_media":278,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-272","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-behind-the-paycheck"],"acf":{"exclude_from_embedded_resources":false,"popularity":0,"essentiality":0},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.7 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Evolving SMB demands drive embedded fintech and all-in-one solutions - Embedded Blog<\/title>\n<meta name=\"description\" content=\"Learn the key trends driving embedded fintech and payroll in all-in-one solutions, including SMBs adoption, loyalty, and budgets by vertical.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/embedded.gusto.com\/blog\/evolving-smb-demands-drive-embedded-fintech-and-all-in-one-solutions\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Evolving SMB demands drive embedded fintech and all-in-one solutions - Embedded Blog\" \/>\n<meta property=\"og:description\" content=\"Learn the key trends driving embedded fintech and payroll in all-in-one solutions, including SMBs adoption, loyalty, and budgets by vertical.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/embedded.gusto.com\/blog\/evolving-smb-demands-drive-embedded-fintech-and-all-in-one-solutions\/\" \/>\n<meta property=\"og:site_name\" content=\"Embedded Blog\" \/>\n<meta property=\"article:published_time\" content=\"2022-12-13T18:28:16+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-12-13T22:20:44+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/embeddedblog.wpengine.com\/wp-content\/uploads\/2022\/12\/emb_blog_101_research.png\" \/>\n\t<meta property=\"og:image:width\" content=\"2400\" \/>\n\t<meta property=\"og:image:height\" content=\"1256\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Brian Busch\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Brian Busch\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Evolving SMB demands drive embedded fintech and all-in-one solutions - Embedded Blog","description":"Learn the key trends driving embedded fintech and payroll in all-in-one solutions, including SMBs adoption, loyalty, and budgets by vertical.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/embedded.gusto.com\/blog\/evolving-smb-demands-drive-embedded-fintech-and-all-in-one-solutions\/","og_locale":"en_US","og_type":"article","og_title":"Evolving SMB demands drive embedded fintech and all-in-one solutions - Embedded Blog","og_description":"Learn the key trends driving embedded fintech and payroll in all-in-one solutions, including SMBs adoption, loyalty, and budgets by vertical.","og_url":"https:\/\/embedded.gusto.com\/blog\/evolving-smb-demands-drive-embedded-fintech-and-all-in-one-solutions\/","og_site_name":"Embedded Blog","article_published_time":"2022-12-13T18:28:16+00:00","article_modified_time":"2023-12-13T22:20:44+00:00","og_image":[{"width":2400,"height":1256,"url":"https:\/\/embeddedblog.wpengine.com\/wp-content\/uploads\/2022\/12\/emb_blog_101_research.png","type":"image\/png"}],"author":"Brian Busch","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Brian Busch","Est. reading time":"4 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/embedded.gusto.com\/blog\/evolving-smb-demands-drive-embedded-fintech-and-all-in-one-solutions\/#article","isPartOf":{"@id":"https:\/\/embedded.gusto.com\/blog\/evolving-smb-demands-drive-embedded-fintech-and-all-in-one-solutions\/"},"author":{"name":"Brian Busch","@id":"https:\/\/embedded.gusto.com\/blog\/#\/schema\/person\/6949674f58882ad7b05524e6bef4f5ed"},"headline":"Evolving SMB demands drive embedded fintech and all-in-one solutions","datePublished":"2022-12-13T18:28:16+00:00","dateModified":"2023-12-13T22:20:44+00:00","mainEntityOfPage":{"@id":"https:\/\/embedded.gusto.com\/blog\/evolving-smb-demands-drive-embedded-fintech-and-all-in-one-solutions\/"},"wordCount":690,"image":{"@id":"https:\/\/embedded.gusto.com\/blog\/evolving-smb-demands-drive-embedded-fintech-and-all-in-one-solutions\/#primaryimage"},"thumbnailUrl":"https:\/\/embeddedblog.wpengine.com\/wp-content\/uploads\/2022\/12\/emb_blog_101_research.png","articleSection":["Behind the Paycheck"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/embedded.gusto.com\/blog\/evolving-smb-demands-drive-embedded-fintech-and-all-in-one-solutions\/","url":"https:\/\/embedded.gusto.com\/blog\/evolving-smb-demands-drive-embedded-fintech-and-all-in-one-solutions\/","name":"Evolving SMB demands drive embedded fintech and all-in-one solutions - Embedded Blog","isPartOf":{"@id":"https:\/\/embedded.gusto.com\/blog\/#website"},"primaryImageOfPage":{"@id":"https:\/\/embedded.gusto.com\/blog\/evolving-smb-demands-drive-embedded-fintech-and-all-in-one-solutions\/#primaryimage"},"image":{"@id":"https:\/\/embedded.gusto.com\/blog\/evolving-smb-demands-drive-embedded-fintech-and-all-in-one-solutions\/#primaryimage"},"thumbnailUrl":"https:\/\/embeddedblog.wpengine.com\/wp-content\/uploads\/2022\/12\/emb_blog_101_research.png","datePublished":"2022-12-13T18:28:16+00:00","dateModified":"2023-12-13T22:20:44+00:00","author":{"@id":"https:\/\/embedded.gusto.com\/blog\/#\/schema\/person\/6949674f58882ad7b05524e6bef4f5ed"},"description":"Learn the key trends driving embedded fintech and payroll in all-in-one solutions, including SMBs adoption, loyalty, and budgets by vertical.","breadcrumb":{"@id":"https:\/\/embedded.gusto.com\/blog\/evolving-smb-demands-drive-embedded-fintech-and-all-in-one-solutions\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/embedded.gusto.com\/blog\/evolving-smb-demands-drive-embedded-fintech-and-all-in-one-solutions\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/embedded.gusto.com\/blog\/evolving-smb-demands-drive-embedded-fintech-and-all-in-one-solutions\/#primaryimage","url":"https:\/\/embeddedblog.wpengine.com\/wp-content\/uploads\/2022\/12\/emb_blog_101_research.png","contentUrl":"https:\/\/embeddedblog.wpengine.com\/wp-content\/uploads\/2022\/12\/emb_blog_101_research.png","width":2400,"height":1256,"caption":"Evolving SMB demands drive embedded fintech and all-in-one solutions"},{"@type":"BreadcrumbList","@id":"https:\/\/embedded.gusto.com\/blog\/evolving-smb-demands-drive-embedded-fintech-and-all-in-one-solutions\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/embedded.gusto.com\/blog\/"},{"@type":"ListItem","position":2,"name":"Evolving SMB demands drive embedded fintech and all-in-one solutions"}]},{"@type":"WebSite","@id":"https:\/\/embedded.gusto.com\/blog\/#website","url":"https:\/\/embedded.gusto.com\/blog\/","name":"Embedded Blog","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/embedded.gusto.com\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/embedded.gusto.com\/blog\/#\/schema\/person\/6949674f58882ad7b05524e6bef4f5ed","name":"Brian Busch","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/embeddedblog.wpengine.com\/wp-content\/uploads\/2022\/11\/HeadshotBB-150x150.png","url":"https:\/\/embeddedblog.wpengine.com\/wp-content\/uploads\/2022\/11\/HeadshotBB-150x150.png","contentUrl":"https:\/\/embeddedblog.wpengine.com\/wp-content\/uploads\/2022\/11\/HeadshotBB-150x150.png","caption":"Brian Busch"},"description":"Brian is currently Head of Marketing at Gusto Embedded; the only payroll API with 10 years of experience and actionable data behind it. Before joining Gusto, Brian held leadership positions at Cloud Elements, Kapost, and Captricity. He holds a BS in finance and a BA in philosophy from Boston College and an MBA from the Cal Berkeley Haas School of Business.","url":"https:\/\/embedded.gusto.com\/blog\/author\/brian-busch\/"}]}},"images":{"large":"https:\/\/embeddedblog.wpengine.com\/wp-content\/uploads\/2022\/12\/emb_blog_101_research-1200x628.png"},"authorDetails":{"id":11,"name":"Brian Busch","avatar":"https:\/\/embeddedblog.wpengine.com\/wp-content\/uploads\/2022\/11\/HeadshotBB-150x150.png"},"_links":{"self":[{"href":"https:\/\/embedded.gusto.com\/blog\/wp-json\/wp\/v2\/posts\/272","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/embedded.gusto.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/embedded.gusto.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/embedded.gusto.com\/blog\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/embedded.gusto.com\/blog\/wp-json\/wp\/v2\/comments?post=272"}],"version-history":[{"count":0,"href":"https:\/\/embedded.gusto.com\/blog\/wp-json\/wp\/v2\/posts\/272\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/embedded.gusto.com\/blog\/wp-json\/wp\/v2\/media\/278"}],"wp:attachment":[{"href":"https:\/\/embedded.gusto.com\/blog\/wp-json\/wp\/v2\/media?parent=272"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/embedded.gusto.com\/blog\/wp-json\/wp\/v2\/categories?post=272"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/embedded.gusto.com\/blog\/wp-json\/wp\/v2\/tags?post=272"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}