Priya PatelTLDR:
- Embedded finance is the use of financial technologies in non-financial applications.
- It works through APIs connecting financial and non-financial platforms for transactions.
In this article, the concept of embedded finance is explored, defining how financial technologies are integrated into everyday apps for transactions. Embedded finance connects banking and payment services with non-financial platforms, offering convenience to users. The article discusses the benefits of embedded finance, such as simplicity, brand loyalty, and access to innovative services, while also highlighting challenges like security risks and increased costs for businesses. Examples of embedded finance include embedded lending, payments, investments, insurance, and banking services on various platforms. The article also touches on the relationship between embedded finance and FinTech, explaining how fintech solutions play a role in the integration process. Overall, embedded finance has revolutionized the way financial services are accessed and used, leading to a more interconnected financial ecosystem.
