Embedded Finance: Unleashing the Potential for Future Growth
Embedded finance (EF) has emerged as a transformative trend in the financial services industry over the past few years, with its mainstream attention skyrocketing in the last two years. By integrating financial services into non-financial platforms and experiences, embedded finance aims to redefine how we interact with money, payments, insurance and banking.
Embedded finance refers to the integration of financial services and products into non-financial platforms or applications, allowing customers to access financial services seamlessly within the context of their everyday activities. It essentially means bringing banking and financial services to where customers already are, rather than requiring them to visit traditional financial institutions (like ‘Buy Now, Pay Later’ (BNPL) services).
Traditional financial institutions and challengers have the power to provide consumers with a frictionless financial future. But how can banks seize this opportunity and create a clear strategy that reshapes customer experience and drives growth?