Companies around the world are improving the way they deliver financial services to their customers, employees, and partners by using embedded finance technology. The improved end-user experiences, increased revenue share, and new customer spending insights make the move to using embedded finance technology a no-brainer for companies looking to find new avenues of innovation.
However, with widespread adoption comes additional oversight from regulatory bodies and external stakeholders who are demanding more attention to be put on the compliance and risk management components of these programs.
This is for good reason, as these financial services programs deal with end-users’ money. Whether it's paying out a freelancer for services through an online marketplace, issuing funds to a customer for joining a new program, or an employee taking advantage of earned wage access, ensuring safe and secure money practices is key to the success and sustainability of a financial services program.
"Brands don’t have the expertise in financial services, and regulators don't have the bandwidth to properly oversee rapid brand adoption - that’s why the embedded finance provider is so crucial for both parties - maintain trust and accountability in the eyes of the regulator, and steer brands in the right direction to create sustainable financial programs."
Luis Trujillo
Chief Compliance & Risk Officer
Alviere
Alviere's Chief Compliance and Risk Officer, Luis Trujillo, joined Money2020's podcast, The MoneyPot, along with Sara Weed, Fintech Partner at Gibson, Dunn & Crutcher LLP, and MoneyPot host, Ian Horne, to discuss the inflection point that we are experiencing in embedded finance. Pure speed to market and customer adoption are no longer the only two focus points of financial services programs. Sustainable programs must have strong risk management foundations.
Podcast highlights:
- US vs. EU risk management regulatory approaches
- Speed to market vs. sustainable program development and success
- End-user transparency
- Low risk starting points for companies looking to use embedded finance technology
- Acquiring money transmission licenses vs. partnering with an embedded finance provider
- Applications of embedded finance technology as a treasury function
- Program liability across all parties
- Key questions to ask as you find the right embedded finance partner
Listen to the full episode through the link below or search for the MoneyPot Podcast wherever you listen to podcasts:
https://www.money2020.com/content/moneypot/compliance-and-risk-management-first
Video Highlight:
Luis Trujillo on card issuing being popular for companies as a starting point using embedded finance. Learn more about branded cards, here.
