The outcome of businesses embedding 昀椀nancial products to date has been very pos- itive. We’ve seen valuation multiple expansion across the board, and in most cases a step function improvement in experience for their end customers. One potential consequence that we are spending time studying is the long-term margin pro昀椀le of the underlying 昀椀nancial products. As 昀椀nancial products become more ubiquitous for consumers and enterprises, we fully expect the new issuers to compete on price. By way of example, for a software business that is already enjoying 75% gross margin, there may come a time when it’s perfectly happy o昀昀ering payments or debit cards at cost. Will these products simply be viewed as table stakes and features that are required to compete? If so, these newer FinTechs will need to continue innovating on brand new 昀椀nancial product experiences or else watch their margins be competed out. fintech partner banks have grown deposits faster than average40 Cross River deposits WebBank deposits Celtic Bank deposits Total deposits $M $M $M $T +3,391% 835% +438% +111% 3,039 458 1,050 16 8 49 149 87 2010 2020 2010 2020 2010 2020 2010 2020 Note: Deposits, All Commercial Banks from Board of Governors of the Federal Reserve System (US) as of 3/12/2021 EMBEDDED FINANCE MAKE TRANSACTIONS EFFORTLESS SHARE VISIT PG 28