Embedded Finance
Future-proofing any company and brand to by enabling them to offer plug-and-play-ready Financial Services directly to their customer base, without the need to acquire a banking license, build up complex technology or expertise for providing Financial Services and Products.
How does it work in practice?
Embedded finance is used by both non-financial corporations (e.g. consumer brands, retailers, telcos, large techs and software companies, car manufacturers, airlines, insurance providers etc) and financial institutions (e.g. banks, fintech, financial services providers, remittance companies and more). This is how a Telco becomes a loan provider and an airline becomes a neobank.
Setting up an internal bank, digital wallet or payment scheme is a process that can be very complicated, costly and time consuming. Embedded finance represents the best of all worlds: It is the middle way to give companies control over financial products and services and increase margins. Without having to make significant investments and operational risks.
Benefits
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Reduced customer churn
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New revenue streams
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Expanded customer offering
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Increased customer lifetime value
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Boosted customer loyalty
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And more
While the specific benefits to your business will naturally depend on which products and services you choose to incorporate into your offering, all benefits are ultimately designed to
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Increase customer value, satisfaction and loyalty (business continuity)
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Increase customer retention (i.e. reduce customer churn)
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Modernize an existing offering (better UX and optimized processes)
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Scale and increase market share (take advantage of our licenses)
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Open new revenue streams (by offering new products and services)
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Cut costs (by tech optimization)