EMBEDDED FINANCE

Radha Suvarna : Recent economic headwinds have constrained technological investment , but in my experience , financial institutions are still prioritising rolling out BaaS and embedded finance use cases .

Faced with meeting increased customer expectations for much more seamless experiences in financial services , BaaS and embedded finance are timely enablers .

They offer the means for financial institutions to integrate their services into the apps , websites and other platforms that their customers already use .

This way , businesses can satisfy customers ’ expectations by meeting them where they already are , not vice versa .

Of course , banks need modern , open platforms in place that allow them to enable open finance , collaborate seamlessly with ecosystem partners and address challenges such as ensuring regulatory compliance and data security – but the right partnerships can help them overcome obstacles and accelerate the journey .

In fact , as BaaS and embedded finance models become increasingly advanced , and the functionalities they provide become simpler to integrate , organisations are now able to offer more all-encompassing tailored propositions .

Crucially , these models also offer a faster way of doing this than before . Over four in five ( 81 %) decision-makers in our 2023 research said that both BaaS and embedded finance enable quicker time-to-market ; leveraging these technologies eliminates the need to build banking products from scratch .

Karine Martinez : It ’ s hard to create this in-house , especially for industries that don ’ t have a strong finance background .

Depending on what you want to offer your customers , you ’ ll need access to banking schemes , licences or card processors , and depending on where you ’ re based and where your operations take place , you might need local financial regulation , eg . from the FCA , or NBB .

But the good news is the rise of BaaS and embedded finance companies in fintech means a lot of those more technical and time-consuming elements can be outsourced to experts , leaving the businesses to focus on what ’ s most important to them .

Edenred Payment Solutions can create an embedded finance solution in as little as 72 hours in some cases , due to having all of the infrastructure and relationships already in place . fintechmagazine . com 139