Embedded finance predictions: insights into a fast-evolving market
To help us understand what’s in store for the embedded finance market in 2023, we have sourced contributions across a broad spectrum of areas. These include payments, lending, regulation, wealth management, banking and insurance.
We have contributions from large banking institutions, startups, scale-ups and venture capital. We also have contributions from across the world.
Embedded finance is evolving from single product and transaction-based to bundles and relationship-based. It is also extending into more complex and heavily-regulated services.
Embedded finance distribution is verticalizing: as SaaS goes more vertical, so is embedded finance, getting access to much richer data to personalise services and manage risks much more accurately.
Banks are getting more active: increasing numbers of banks are moving into providing banking-as-service, leveraging their balance sheet, regulation, risk management know-how, reputation, and existing customer relationships.
Regulation remains key. Open banking is essential to catalysing the embedded finance market and more regulation is coming into 2023. Also, the question of how best to manage regulation across ecosystems will become more pressing.