1、uncommon senseTMOpportunities for ERP and payroll SaaS providersEmbedded Finance02|OC&C Embedded FinanceEMBEDDED FINANCE IS A MATERIAL OPPORTUNITY FOR SAAS ERP AND PAYROLL PROVIDERS.OC&CS RESEARCH SUGGESTS THAT AN EBITDA UPLIFT OF 20-30%COULD BE ACCESSIBLE ON A 2-3 YEAR TIMESCALE,WITH A MUCH LARGER

2、OPPORTUNITY AVAILABLE IN THE LONGER TERM.We believe that a new generation of specialist embedded finance providers can offer rapid time-to-value and a proposition that allows you to keep full control of the customer relationship and workflow.Wed encourage you to take this opportunity seriously.In th

3、is paper,we aim to provide a short briefing on the opportunity.We will outline:1.How the Embedded Finance value chain works in ERP and Payroll and in particular how it now enables ERP and payroll software players to offer valuable financial services to customers with very low friction and no regulat

4、ory exposure.2.An overview of embedded finance products with most traction today.3.A worked example showing how a 20-30%EBITDA uplift is available on a 2-3 year time frame and an illustrative view of how transformational EBITDA uplift might be achievable over time something that has already been ach

5、ieved by some vertical software players(e.g.Toast in US Hospitality).4.Your potential options to move ahead and capture the opportunity.OC&C Embedded Finance|03EXHIBIT 1:EMBEDDED FINANCE VALUE CHAIN IN B2B SAAS The Embedded Finance value chainTHE VALUE CHAIN FOR EMBEDDED FINANCE IS TYPICALLY COMPOSE

6、D OF THREE STEPS,FROM THE END CUSTOMER(SUCH AS AN SME)TO A FULLY REGULATED FINANCIAL ENTITY,TYPICALLY VIA A SOFTWARE PLATFORM(E.G.ERP SOFTWARE)AND A FINANCIAL SERVICES ENABLER.We note that more financial services enablers are moving towards getting full banking licenses(e.g.Swan.io in France)and ban