Embedded Finance & How It’s Revolutionizing Financial Services

What is embedded finance and how is it revolutionizing financial services?

Embedded finance, which is also called embedded banking, has become a buzzword in the banking and fintech spaces. Embedded finance is set to revolutionize the world of fintech. 

Embedded Finance or Embedded Banking

Thanks to embedded finance, via Baas (Bank-as-a-Service), you, as a business owner can incorporate banking software right into your company’s websites or mobile apps as another service within your services. Consumers don’t need to be redirected 3rd party websites.

This means payments for purchases can be made over the internet without the need to submit details or get instant access to a consumer loan on digital platforms outside banks, and this isn’t the only option to get access to.  What does this mean for customers? Well, this means less friction, more convenience, faster, simpler, and more seamless purchasing experience. 

For you, as a business owner, this means greater customer loyalty and returning customers. You get an opportunity to own part of your users’ banking experiences, thus getting a better idea of your customer communities. As a result, you can enter into a more customized and seamless relationship with them. 

If you’re interested in embedded finance, turn to a true payment expert that can help you in the best possible way. In today’s increasingly digital world, you can’t move forward without using advanced payment processing solutions from reputable merchant services providers in your space. When applying, make sure you’re offered the most advanced, cheapest and the most secure payment processing services, including merchant funding, in the U.S.

Fintech Future: Embedded Banking 

As your learned from the above information, embedded banking allows non-financial services companies to deliver banking services. Companies get an opportunity to enter much larger markets, which will eventually result in numerous partnerships and access to new ecosystems across various industries. 

According to research by Lightyear Capital, embedded banking revenue streams are forecast to reach $230 billion in 2025. In 2020, that amount was $22.5 billion. 

Growth of Embedded Banking 

Through embedded banking, non-fintech companies can use Banking-as-a-Service and API-driven banking and payments services for the purpose of integrating financial services within other environments and ecosystems. The future of fintech goes hand in hand with embedded banking. 

Author Bio: Michael Hollis is a Detroit native who has helped hundreds of business owners with their (embedded finance) solutions. He’s experimented with various occupations: computer programming, dog-training, accounting… But his favorite is the one he’s now doing — providing business funding for hard-working business owners across the country.