What Does Embedded Finance Mean?
Embedded finance tools allow seamless integration of payments, insurance, debit cards, loans, and investments into non-financial products. These tools enable features like offering credit or installment options directly within e-commerce platforms, enhancing transaction rates, profitability, and consumer loyalty without requiring customers to visit a bank. The financial industry is evolving rapidly due to new competitors, commodity payments, regulatory changes, and shifting customer expectations. Traditional banks must adapt quickly, similar to FinTech companies, as the disruption of payments is no longer exclusive to FinTechs.