Trends In Embedded Finance

Jimmy Singh
Posted by Jimmy Singh | Dec 16, 2022

Embedded finance is a growing trend in the financial services industry, with more and more companies offering financial products and services directly to their customers through their existing products and platforms.

Here are the top trends in the embedded finance industry that are worth watching -

  1. Increased adoption of embedded finance by non-financial companies: Non-financial companies, such as retailers and technology companies, are increasingly offering financial products and services directly to their customers through their existing products and platforms. This allows them to create new revenue streams and improve the customer experience.

  2. Rise of platform-based models: Many embedded finance companies are adopting platform-based business models, which allow them to easily integrate with other companies and offer a wide range of financial products and services. This allows them to quickly expand their offerings and reach new customers.

  3. Growth of open banking and APIs: The use of open banking and APIs is growing in the embedded finance industry, allowing companies to easily integrate financial services into their products and platforms. This allows for more seamless and secure financial transactions.

  4. Emergence of new technologies: New technologies, such as blockchain and artificial intelligence, are being used by embedded finance companies to improve the security and efficiency of financial transactions.

  5. Increased focus on customer experience: Embedded finance companies are putting a greater emphasis on creating a seamless and convenient customer experience. This includes offering personalized financial products and services, as well as providing easy-to-use digital tools and interfaces.

  6. Expansion into new markets: Embedded finance companies are expanding into new markets, such as emerging economies, to tap into untapped potential and reach new customers.

  7. Consolidation in the industry: The embedded finance industry is becoming more consolidated, with larger companies acquiring smaller ones to expand their offerings and reach new customers.

  8. Increased regulation: As the embedded finance industry grows, it is facing increased scrutiny and regulation from government agencies and financial institutions. This is leading to greater standardization and transparency in the industry.

  9. Increased use of data and analytics: Embedded finance companies are using data and analytics to better understand their customers and offer personalized financial products and services. This allows them to improve the customer experience and drive revenue.

  10. Growth of mobile and digital payments: The use of mobile and digital payments is growing in the embedded finance industry, allowing customers to easily and securely make financial transactions on the go.

  11. Development of new financial products and services: Embedded finance companies are developing new financial products and services to meet the changing needs of their customers. This includes offering innovative savings and investment products, as well as specialized financial services for specific industries or customer segments.

  12. Increased focus on sustainability and impact investing: Embedded finance companies are putting a greater emphasis on sustainability and impact investing, allowing customers to align their financial decisions with their values and support socially responsible initiatives.

  13. Emergence of new entrants: The embedded finance industry is seeing the emergence of new players, including fintech startups and non-traditional financial institutions, who are looking to challenge the established players and offer innovative financial products and services.

  14. Growth of collaboration and partnerships: Embedded finance companies are increasingly collaborating and partnering with each other and with traditional financial institutions to offer a wider range of financial products and services and improve the customer experience.

  15. Development of new technologies and platforms: The embedded finance industry is seeing the development of new technologies and platforms, such as blockchain and cloud-based solutions, which are enabling more efficient and secure financial transactions.

  16. Increased focus on compliance and risk management: As the embedded finance industry grows, companies are putting a greater emphasis on compliance and risk management to protect against fraud and other financial crimes.

  17. Emergence of new business models: The embedded finance industry is seeing the emergence of new business models, such as subscription-based and pay-as-you-go models, which are allowing companies to offer financial products and services in more flexible and convenient ways.

  18. Growing demand for financial literacy and education: As more people have access to financial products and services through embedded finance, there is a growing demand for financial literacy and education to help customers make informed financial decisions.

 

Overall, the embedded finance industry is undergoing rapid change and growth, and these trends are worth watching as the industry continues to evolve.

Talk to us to find out more about embedded finance or our other white-label solutions. > 


Watch this space for more updates as we roll out more features to accelerate financial product innovation. As always, connect with us below to learn more about how innovative card programs and scalable features can power your financial product or fintech program.