Embedded Finance

About

Embedded finance is the integration of financial services into non-financial platforms, enhancing accessibility and convenience for users. It allows companies outside the financial sector to offer banking, lending, insurance, and investment services directly within their apps or websites. This integration is facilitated by technologies like APIs, enabling seamless transactions and user experiences. Embedded finance includes services such as "Buy Now, Pay Later" options, which are popular in e-commerce platforms. The concept leverages existing customer engagement platforms to provide financial tools at the point of need, fostering loyalty and revenue growth. It also extends financial inclusion by reaching underserved populations through familiar ecosystems. Embedded finance is distinct from open banking and decentralized finance (DeFi), as it relies on centralized technologies and partnerships with traditional financial institutions. Its growth is driven by evolving consumer expectations and technological advancements, promising significant expansion in the financial services landscape.