Embedded derivative and Embedded finance: Difference between pages

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A component of a hybrid security that is embedded in a non-derivative instrument.  
''Information technology - financial services.''
 
Embedded finance means tailored financial services offerings, integrated into a non-financial business platform.
 
Examples include online retailers.
 
 
:<span style="color:#4B0082">'''''How consumer-facing companies benefit from embedded finance'''''</span>
 
:"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''


An embedded derivative can modify the cash flows of the host contract because the derivative can be related to an exchange rate, commodity price or some other variable which frequently changes.


== See also ==
== See also ==
* [[Derivative instrument]]
*[[Bank]]
   
*[[Banking as a service]]
*[[Buy Now Pay Later]] (BNPL)
*[[Cambridge Centre for Alternative Finance]]
*[[Disruptor]]
*[[Financial services]]
*[[Fintech]]
*[[Friction]]
*[[Hyper-personalisation]]
*[[Information technology]]
*[[Interoperability]]
*[[Open banking]]
*[[Open banking APIs]]
*[[Tailor]]
 
 
==Other link==
*[https://www.treasurers.org/hub/treasurer-magazine/is-embedded-finance-the-next-big-thing?utm_campaign=Oktopost-TREASURER-TW&utm_content=Oktopost-linkedin&utm_medium=social&utm_post_source=OktopostUI&utm_source=linkedin Promising future: is embedded finance the next big thing]


[[Category:The_business_context]]
[[Category:Identify_and_assess_risks]]
[[Category:Manage_risks]]
[[Category:Risk_frameworks]]
[[Category:Risk_reporting]]
[[Category:Cash_management]]
[[Category:Financial_products_and_markets]]
[[Category:Liquidity_management]]
[[Category:Technology]]

Revision as of 15:49, 26 September 2022

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


Other link