Embedded Finance
In 2020, this trend gained tremendous speed and is not going to slow down in the near future. Financial services are starting to operate behind the scenes, becoming an integral part of non-financial products.
Embedded finance
In 2020, this trend gained tremendous speed and is not going to slow down in the near future. Financial services are starting to operate behind the scenes, becoming an integral part of non-financial products.
Embedded finance tools allow businesses to integrate payments, debit cards, loans, insurance, and even investment instruments into virtually any user experience. For example, you can get a loan directly on an online store or supplier company website without filling out any forms. In turn, applications that seemingly have nothing to do with finance now enable money-sending features. This approach will be profitable for banks and fintech companies, as it will allow them to compete with players pulling customers into their banking applications.
- For software companies, embedded financial tools can increase the revenue per user two- to five-fold.
- For financial institutions, embedded finance essentially implies attracting users at zero cost and obtaining additional contextual data, including real-time data.
2021 will drive banks further away from customers, thus demonstrating the limited value of banking apps.
In Europe, financial institutions focus on distributed development and seek to integrate their services at a different, deeper level. They are encouraged to do so by open banking development.
At the same time, the UK market is known for the requirement of obligatory user consent for any data processing. In this context, fintech products need to clearly show their value to the user.
In 2021−2023, the trend of embedded finance development will lead to lower marketing and branding costs for traditional banks since aggressive promotion will not be necessary. As a result, some banks can become truly invisible.
At the same time, the UK market is known for the requirement of obligatory user consent for any data processing. In this context, fintech products need to clearly show their value to the user.
In 2021−2023, the trend of embedded finance development will lead to lower marketing and branding costs for traditional banks since aggressive promotion will not be necessary. As a result, some banks can become truly invisible.
Starling
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Railsbank
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Shieldpay
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Bsurance
Bsurance integrates custom insurance products, including claims settlements, into any digital platform.
Sberbank
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Wildberries
Wildberries marketplace is buying a small bank to implement card loyalty programs and settle accounts with suppliers based on their license.
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