Embedded Finance is a modern approach to financial services that involves seamlessly integrating financial offerings into non-financial platforms, applications, or processes.
This trend represents the convergence of the finance and technology sectors, enabling non-financial companies to augment their offerings with financial services. Companies of all sizes and across industries — from startups to established enterprises — can leverage embedded finance to diversify their offerings and generate new revenue streams.
Examples of embedded finance include the following:
- an e-commerce platform offering insurance products
- a financial planning app that integrates loan application services
- a social media platform providing digital wallet payment options
This paradigm shift in the delivery of financial services not only provides users with more convenience and a superior experience but also allows companies to capitalize on customer loyalty, boost engagement, and foster long-term relationships.