The integration of financial products within content-rich, contextually relevant scenarios is unlocking powerful new possibilities in Embedded Finance.Customers are increasingly drawn to platforms that deliver comprehensive, bundled solutions that not only meet their financial needs but are seamlessly integrated into their day-to-day digital experiences.
Key insights Embedded finance potential include:
Market Capitalization and Transaction Growth: With recent research paper placing Embedded Finance at a market cap of over USD 7 trillion within the next decade, B2C and B2B transactions will be a significant growth area. By streamlining corporate payments, trade, and treasury management, Embedded Finance is making once-complex financial processes more accessible and efficient.
Fintech Innovation & Banking as a Service (BaaS): Fintechs are developing innovative Embedded Finance solutions through BaaS platforms, which offer modular and programmable financial services. These platforms empower non-financial companies to integrate robust financial functions seamlessly.
Strategic Moves for Banks & NBFCs: For traditional banks and NBFCs, Embedded Finance presents an opportunity to expand into digital ecosystems and offer interoperable services.
Empowering SMEs: Small and medium-sized enterprises can leverage Embedded Finance by incorporating banking functions directly into digital platforms, driving operational efficiency and creating new avenues for growth.
Unified Financial Experiences through APIs and Self-Service Models: Financial services embedded into specialized digital platforms, supported by cutting-edge APIs, allow for streamlined onboarding and high-quality customer interactions.
Enhanced Product Distribution: Embedded Finance is not limited to new financial products. By offering existing products through new digital channels, companies can reach more consumers. Innovations in real-time risk assessment further support the expansion and diversification of Embedded Finance offerings.
Embedded Finance brings a host of benefits and growth drivers :
Increased Revenue per User for Fintechs: By embedding financial services within their offerings, fintechs can leverage additional revenue streams.
Customer Value, Loyalty, and New Revenue Streams: For non-financial companies, Embedded Finance offers a unique way to enhance customer experience by providing value-added financial services within their core offerings.
Platforms like EximPe can play a pivotal role in this transformation by serving sizable client segments—retail, SME, and corporate—through vertically specialized solutions. This high-frequency interaction model benefits all participants within the Embedded Finance ecosystem, including balance sheet providers, technology partners, distributors, and end-users. This empowers each participant to better meet evolving demand and capture new opportunities.
*Credits - Paypers
#Trade Finance #Banks #NBFC #Embedded Finance #Cross Border #EximPe
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