Today, any brand can offer its customers access to financial products and services directly through its platform. With the use of embedded financial technology, financial services are becoming more integrated with the products and services of non-banks, expanding the boundaries of fintech innovation across all industries.
Banking-as-a-service (BaaS) has game-changing and far-reaching implications as it will become an essential part of our global financial ecosystem. This is why 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 their traditional financial services provider.
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. The implementation of embedded financial services aims to attract 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 for these services. The multi-faceted benefits of embedded finance support the creation of superior customer experiences. Brands like Starbucks, Amazon, and Doordash are just some of the companies at the forefront of the movement to decentralize financial services in order to build better customer relationships.
In this Embedded Finance Innovators series, Alviere explores how some of the world’s most successful brands have been visionaries in executing and delivering digital financial services. We highlight all the best implementations of embedded financial products and explain how modern financial technology is currently being used to elevate customer engagement and retention while creating additional revenue streams for big brands.
By mastering personalization at scale, improving customer data and analytics, and increasing financial accessibility and convenience, the progression of digital banking services has clearly been a success. It has both advanced and deepened customer relationships while solidifying brand loyalty, providing the kind of win every brand desires.