Embedded finance

Information technology - financial services.

Embedded finance means tailored financial services offerings, integrated into a non-financial business platform.

Examples include online retailers.

How consumer-facing companies benefit from embedded finance

"For consumer-facing companies, the promises of embedded finance are clear and within reach.

To understand how these companies might benefit, it helps to think of embedded finance as a process whereby a firm integrates a specially tailored financial infrastructure into its business model, enabling customers to carry out transactions with that company in a self-contained, frictionless way – without involving traditional banks.

As such, embedded finance products tend to revolve around individual, ‘in-context’ accounts that customers will set up at the [non-financial] business in question."

The Treasurer online, 2 December 2021

See also

• Bank
• Cambridge Centre for Alternative Finance
• Disruptor
• Financial services
• Fintech
• Information technology
• Interoperability
• Open banking APIs
• Tailor

Other link

• Promising future: is embedded finance the next big thing