By: Nirav Patel, CEO of Andaria
In the ever-evolving landscape of financial technology, the concept of embedded finance has emerged as a transformative force, presenting non-financial institutions (NFIs) with unparalleled opportunities to enhance their operations and reshape their relationships with customers.
Embedded finance is now central to innovation and future growth in the financial industry. With the increasing integration of savings, credit, insurance and investing tools into non-financial apps or websites, the market for embedded finance applications is projected to grow fivefold between now and 2032.
Embedded finance offers the ability for just about any business to operate as a fintech company, opening a myriad of opportunities for businesses to boost revenue and revolutionise the customer experience.
Scaling your NFI with embedded finance
Scalability is the basis of business growth, and embedded finance is the foundation upon which future success can be built. Embedded platforms empower businesses to effortlessly expand their range of financial services as they grow. The tangible scalability of the solution ensures that NFIs remain agile and responsive to evolving customer demands.
For example, robust transaction monitoring and regulatory compliance provides businesses with the confidence to expand their financial offerings without hesitation. Most embedded finance solutions provide a team of dedicated account managers and advanced fraud protection mechanisms to enhance operational efficiency and security, contributing to more sustainable growth.
Maximising profits through embedded finance
Embedded finance represents a revolutionary paradigm shift for NFIs, offering them the opportunity to tap into previously uncharted revenue streams. By seamlessly integrating financial products and services into their existing platforms, businesses can unlock new levels of sales and profitability while offering their customers a seamless and cohesive financial experience.
We’re seeing more and more success stories in embedded finance, with various leading e-commerce platforms integrating embedded payments into their platforms to offer virtual and physical branded debit cards to their customer base. By making this move, they are not only able to streamline the payment process but also foster brand loyalty, resulting in substantial revenue growth.
The versatility of embedded offering, including the availability of single or multi-use cards, caters to the diverse nature of customer needs, further enhancing revenue potential for businesses.
Shaping the path forward for embedded finance
As we look ahead to the future of the financial services industry, embedded finance is poised to play a pivotal role in its future growth. By simplifying Know Your Customer (KYC) and compliance processes, businesses could be relieved of regulatory burdens, allowing them to focus on the innovative and customer-centric solutions they built their reputations with.
The potential for NFIs to create additional revenue streams through financial products and services is boundless. The seamless integration experiences that embedded solutions provide makes it easier than ever for businesses to enhance customer satisfaction, and ultimately drive revenue growth. Strategic partnerships with major card networks and compatibility with popular digital wallets like Google Pay and Apple Pay allows for a more connected and convenient financial ecosystem to be established.
Embedded finance is representative of the profound transformation taking place in the financial services industry. As we continue to empower NFIs to provide a cohesive financial experience, unlock new revenue streams, and ensure regulatory adherence, we are dedicated to contributing to the future of embedded finance. The journey is not just about success; it’s about how embedded finance can empower a variety of businesses across the globe to thrive in a rapidly changing financial landscape.
