Multifaceted aspects of embedded finance

Embedded finance has skyrocketed in recent years, where businesses have started bringing financial services like loans, insurances and instant payments under their non-financial wing without involving banks. Projected to proliferate by trillions of dollars worth in the next decade, we are at the cusp of a fintech revolution that will pave the way for the future of finance.

Embedded finance services are becoming mainstream with the youth population who are also entering the workforce. As their buying power expands and the chronically online tech-savvy generation expands the frontiers of e-commerce further, we stand at an exciting point in fintech history. From NFTs ruling the Metaverse to A.I. systems channeling biometrics, the sky is the limit as far as embedded financial solutions are concerned.

Embedded finance is expected to grow in all the subfields:

– Banking services

As modern banking solutions come about to cater to new needs of customers, the banking system is only expected to make more positive changes that promote embedded finance. Banks will soon no longer require physical meetups as most of their services can be accessed online. Be it offering novel payment options to their Gen Z consumers or digitalizing all the services in a bank, embedded banking is here to stay.

– Lending solutions

Embedded lending is already taking off, from online marketplaces to offline retail stores offering many lending options. As more businesses come up with embedded lending features, consumers will only increase their purchasing patterns in a progressive way. This is especially true with the young adult consumerbase who buy most things on a Buy Now, Pay Later basis.

– Digital payment applications

Quick payment apps like Amazon Pay, Google Pay, Samsung Pay, Apple Pay, PayPal and Venmo have revolutionized the way we make transactions. As we lead into an even more paperless and cashless economy, consumers will soon give up on using physical money and carrying credit or debit cards. Everything can be stored in our digital wallets and shopping has never been easier or quicker.

– Easy insurance access

Embedded insurance has altered the way people can get insurance in under 24 hours. As more apps and platforms offer insurance as an additional feature while purchasing and booking, insuring your flight or concert tickets just became easier than ever. Soon, it will become the norm for most e-commerce and retailers to offer insurance policies to safeguard consumers instantaneously.

– Instalment option

One of Gen Z’s most beloved feature in online shopping is the installment plan. It is offered by platforms like Amazon, PayPal, Target, Klarna, Afterpay and Sezzle as Buy Now, Pay Later (BNPL) schemes. This trend is only expected to go mainstream soon as most businesses start to offer installment payback features to their consumers.

The article was written by Bahaa Abdul Hussein and has been published by the editorial board of Fintek Diary. For more information, please visit

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