Today, any brand can offer its customers access to financial products and services directly through its existing app or website. With the use of embedded finance, financial services are becoming more integrated with the products and services of non-banks, expanding the boundaries of fintech innovation across all industries.
It’s no surprise that the value of the embedded finance market, which was at $43 billion in 2021, is estimated to grow to $138 billion by 2026. Big brands are currently racing not to be the first, but to be the best at bringing progressive financial experiences to life for their customers.
The versatility of modern payment solutions has revolutionized the landscape of digital payments for both consumers and businesses across the internet. Customers are increasingly making financial decisions and executing them without the help of a traditional financial services provider. Digital convenience is the key driver here.
Because of this societal shift, big brands are focused on creating seamless personalized shopper experiences by offering customized financial tools and services in addition to core products. Embedding financial services attracts new customers, retain loyal customers, build new revenue streams, and improve customer engagement and lifetime value.
Customers today want streamlined financial interactions that are frictionless. The growing need for flexible financial services alongside the increasing number of online transactions continues to fuel the demand. The multi-faceted benefits of embedded finance support the creation of superior customer experiences. Brands like Starbucks, Amazon, and Doordash are just a few of the companies at the forefront of the movement to decentralize financial services to build better customer relationships.
In this Embedded Finance Innovators series, we explore how some of the world’s most successful brands have been visionaries in executing and delivering digital financial services. Highlighting the best implementations of embedded financial products and how modern financial technology is used to elevate customer engagement and retention while creating additional revenue streams for enterprises.
