Swan’s Post

🚀 Unlocking the Power of Embedded Finance: A New Era for Customer Experiences In recent years, embedded finance has emerged as a powerful force at the intersection of commerce, banking, and business services. But what exactly is it, and why should we pay attention? Let’s dive in: 1. What Is Embedded Finance? Embedded finance involves placing financial products within nonfinancial customer experiences, journeys, or platforms. Think of it as seamlessly integrating banking services into everyday digital interfaces. Unlike traditional private-label credit cards or sales financing, the next generation of embedded finance goes beyond standalone services. It’s about making financial interactions a natural extension of our daily activities—whether we’re shopping online, managing inventory, or scheduling employees. 2. Why Is It So Powerful? Digital Commerce Boom: As much as 33% of global card spending (and a whopping 50% in the US) now happens online. Small and midsize businesses increasingly rely on software solutions for managing their operations. Integrated Experiences: Users prefer accessing payments, lending, insurance, and other financial services directly within the software they use daily. It’s all about convenience and seamlessness. 3. The Numbers Speak Volumes: In 2021, embedded finance accounted for $2.6 trillion (nearly 5% of total US financial transactions). By 2026, it’s projected to exceed $7 trillion (over 10% of total US transaction value). The market could double in size within the next three to five years. 4. Key Trends to Watch: B2B Market Takeoff: Embedded finance is primed for growth in the B2B space. Account-to-Account (A2A) Transactions: Expect a surge in A2A transactions. Bank Partnerships: Traditional banks are entering the embedded finance equation. Emerging Technologies: Keep an eye on how technologies like blockchain and AI intersect with embedded finance. 5. Winning Strategies: Risk and Brand Calculus: Rethink risk and brand considerations. Integration Models: Embrace different integration approaches. Vertical Segments: Identify where to play—whether it’s payments, lending, insurance, or other value-added services. In summary, embedded finance isn’t just a buzzword; it’s reshaping how we interact with financial services. As businesses and consumers, we’re no longer satisfied with siloed banking experiences. The future lies in seamless integration, and those who adapt will thrive in this new value chain. 🌟 Feel free to share/comment your unique thoughts 📈💡 #EmbeddedFinance #Fintech #DigitalTransformation #BankingInnovation #CustomerExperience #FutureOfFinance #TechTrends #BusinessStrategy

🏦 The embedded finance market will reach $7 trillion by 2026, presenting significant opportunities for financial institutions globally. But to capitalize on this potential, financial institutions must first adapt their tech stack to meet the unique challenges and requirements of embedded finance. 🌐 From foundational API gateways and compliance solutions to value-added card issuance and lending platforms, a comprehensive embedded finance tech stack delivers seamless, secure, and compliant experiences to end-brands and their customers. 🤝 Get started on the right foot by making informed decisions and partnering with trusted providers. Read our latest guide, co-written with Treasury Prime, to learn more. https://lnkd.in/e8xaDvzr

As digital banking adoption grows among consumers across the world, there has been a surge in demand for embedded finance solutions. A new report from Boston Consulting Group (BCG) and QED Investors suggests that the embedded finance market is likely to exceed $320 billion in revenues by 2030, with small to medium-sized businesses (SMBs) accounting for nearly half the stated revenue.   To gain further insights on the embedded finance trend, we sat down for a chat with Phillip Rosen, Global Chief Technology Officer (CTO) at MoneyLion. Click on the link to read more.

Embedded finance is quickly growing as an viable alternative to traditional banking. As businesses and consumers continue to embrace digital transformation, the integration of embedded finance is being driven by the increasing demand for convenient and accessible financial solutions. Those who adopt embedded finance solutions, such as Banking-as-a-Service, will not only maintain relevance but also thrive in the dynamic landscape of 2024 and beyond. https://lnkd.in/emX46T8N #embeddedfinance #banking #bankingasaservice #bankingsolutions

Lowell Enhances Its Debt Collection Operations With a New Three-Year SaaS Partnership Extension With Tietoevry Banking “We are proud of our successful partnership with Lowell providing a solution that enhances their debt collection operations. This showcases the promise of our SaaS offering – enabling customers to focus on their core business and their own customers,” says Pär Johansson, Head of Credit and Wealth at Tietoevry Banking. https://lnkd.in/ewAuHU3g Edgar Kallestad Anders Wahlbom Jessika Laiõun Jon Bremnes Juha Wilkman Petri Koivunen Claire Halliwell #fintech #finance #banking #paytech #payments #fintechnews #paymentsnews

🖥 💰Why Embedded Savings? 💰 🖥 🏦 As explained effectively in this great Treasury Prime article, embedded finance technology provides software to banks, enabling them to easily run and manage embedded finance programs. 🌉 Sync's embedded savings act as a 'software bridge' so that banks can build better products to enhance customer experiences by offering seamless financial solutions in tandem with other services. 💡💰 Embedded saving options are a convenient and accessible way for customers to save. They are what we, at Sync, believe to be an effective solution to the UK's massive financial resilience deficit💰💡 https://lnkd.in/dEqTtmSC

Embedded Finance: Where Brands Meet Banking Embedded finance is reshaping the financial landscape. Brands that integrate financial services boost customer loyalty and unlock new revenue streams, while banks can leverage their trust advantage and partnerships to stay relevant in a rapidly evolving ecosystem. Those who embrace this shift now are primed for success in the future. 3 key takeaways - -**Consumer brands are being increasingly seen as credible financial players**: Consumer brands are increasingly offering embedded financial services, capitalizing on customer loyalty and convenience. With 63% of U.S. consumers aged 18 to 34 open to banking services from non-financial brands, brands can use Banking-as-a-Service (BaaS) to drive higher conversion rates and boost average order value, particularly in retail sectors like fashion. -**Trust is the core advantage for traditional banks**: Traditional banks hold a significant advantage in consumer trust, with 70% of consumers viewing them as the most reliable financial service providers. This trust positions banks to retain their relevance in the face of embedded finance by leveraging it to deepen customer relationships and capture market share, particularly in Europe, where embedded finance revenue could reach €100 billion by 2030. -**Strategic partnerships between banks and brands could help unlock value**: To stay competitive, banks must forge alliances with tech platforms and non-financial brands, creating co-branded financial products that resonate with niche audiences. Partnerships, like Uber and Evolve Bank & Trust’s debit card for drivers, illustrate how banks can expand their reach and offer tailored experiences that drive engagement. [Read the entire article here] https://lnkd.in/gq_Hv2hj

Embedded finance can often be a difficult concept to understand, and even harder to implement. In a new opinion piece for PaymentsNext, Michael Engel, Managing Director & Banking Software VP, explores the pain points driving the push for embedded finance solutions and outlines strategies financial institutions can take to simplify legacy banking technology as we know it today.  #bankinginsights #bankingtrends #bankingtechnology #futureofbanking

The report titled "The Embedded Finance Report: How Platforms Are Revolutionizing SMB Banking" produced by Boston Consulting Group (BCG) in collaboration with Adyen, examines the transformative role of #embeddedfinance in empowering #smallandmediumsizedbusinesses (#SMBs). This report highlights how integrating #financialservices directly into #digitalplatforms is changing the landscape for #SMBbanking by enhancing #customerexperiences and enabling #businesses to #streamline #financialoperations more effectively. Key Insights: Growth of Embedded Finance for SMBs: The report emphasizes the rapid expansion of embedded finance solutions, such as payment processing, lending, and insurance, integrated directly within platforms used by SMBs. This shift enables businesses to access financial services more conveniently, removing traditional banking barriers and simplifying cash flow management. Enhanced Customer Experience: Embedded finance offers SMBs a seamless experience by allowing customers to make #transactions within the platforms they already use, such as #ecommercewebsites and #digitalmarketplaces. This integration increases #customersatisfaction and loyalty by providing a more streamlined checkout process and personalized #financialservices tailored to their business needs. Access to Capital and Financial Inclusion: By leveraging platform #data, #embeddedfinance providers can better assess SMB creditworthiness, allowing for faster, data-driven lending decisions. This access to capital is crucial for SMBs, particularly those underserved by traditional #financialinstitutions, fostering growth and financial resilience. Operational Efficiency and Cost Reduction: Integrating financial services within platforms enables SMBs to automate processes such as invoicing, payroll, and expense management. This efficiency reduces administrative burdens, improves cash flow, and allows businesses to focus more on core operations rather than financial administration. Future Potential and Ecosystem Expansion: The report suggests that as embedded finance continues to grow, it will evolve beyond payments and lending to encompass a wider array of services, including wealth management and financial planning tools. This expansion offers a vast market opportunity for platforms and financial providers to further support SMB growth. Conclusion: BCG and Adyen’s report underscores the transformative impact of embedded finance on SMB banking. By integrating financial services directly into platforms, embedded finance not only enhances user experiences but also democratizes access to essential financial tools and capital, fueling SMB growth. As this ecosystem matures, the collaboration between technology platforms and financial institutions will play a vital role in reshaping the future of small business finance, making it more accessible, efficient, and customer-centric.

Embedded finance is the seamless integration of digital banking, along with other financial products and services, into nonfinancial companies’ platforms or applications. It enables these nonbanking businesses to offer their customers—and additional stakeholders, such as suppliers, partners, and employees—a wide range of financial services, including lending, insurance, and payments, without having to build the underlying financial infrastructure or hold the relevant regulatory approvals themselves. https://lnkd.in/eUvWx5c6