A progression with its origins in the epidemic and current favorable conditions for transforming all businesses into financial corporations is illustrated by several surveys. To assist provide client organizations more access to financial services, many kinds of providers (including FinTechs and others) across verticals are collaborating with banks more than ever.
Personalized Experience
A fortunate convergence of circumstances will enable embedded finance and BaaS to realize their full potential. Businesses perceive an opportunity to engage clients through a richer experience, which is driving them to want to incorporate FinTechs’ solutions into their own operations. Customers want financial services at our fingertips, firmly entrenched in the digital channels and ecosystems. Living our lives financially, on platforms and through apps means more than just opening accounts and juggling checking and savings activities. Embedded finance can help enterprises leverage customer-level data in real time to offer personalized credit and payment options.
FinTechs may choose the suppliers they want and develop the solutions they want thanks to the platform concept. A co-branded credit card between Mastercard and Instacart was created last year. The card offers a variety of redemption options that allow users to earn infinite cash back. Partnerships between FIs and BaaS efforts have inspired the emergence of several more use cases and examples.
