Embedded finance

Discover what embedded finance can offer for all financial services.

What embedded finance means

Embedded finance means that non-financial businesses are becoming part of the financing process. Embedded finance allows businesses that are not traditionally in the financial sector to offer financial services to their customers seamlessly.

By embedding financial services into their websites, apps or platforms, these companies are able to provide a more convenient and streamlined experience for their customers while also generating additional revenue streams.

Typically the term embedded finance covers the whole financing sector: embedded lending, embedded investing, embedded insurance.

Embedded finance market is growing

Non-financial businesses are keen to implement embedded finance solutions as a part of their service, as the demand for financing is at all time high level in many product segments.

Overall the embedded finance is a rapidly growing multibillion dollar market, embedded finance offers exciting potential for growth and innovation.

With more non-financial businesses jumping into the world of embedded finance, there are plenty of partnering opportunities and customer acquisition channels available for financial services that seize the opportunity.

Why to get started with embedded financing

Checking Account - Bnkly X Webflow Template

Unlock new customer acquisition Channels

Embedded finance helps you to increase application volumes by discovering new sales channels.

Investments - Bnkly X Webflow Template

Improve the quality of your customers

Attach your financing to the purchase of products or services and increase customer quality.

Loans And Credits - Bnkly X Webflow Template

Spend less on marketing

Discovering cheaper customer acquisition channels can reduce your total marketing costs.

Next-gen Banking Experience - Starthub X Webflow Template

Rahoo is an easy way to pilot in embedded finance

Use Rahoo Platform to get started with the embedded finance without any coding required.

Innovative - Starthub X Webflow Template

Fast time to market

The most of our embedded finance solutions are delivered within a one week.

Execution - Starthub X Webflow Template

No IT-resources Needed

Getting started with Rahoo doesn't require development from your end.

More about embedded finance

Embedded Finance is a big trendy umbrella term for all embedded finance. Please see also our other embedded finance related content for the more specific information for your use cases.

Embedded Lending
Embedded Insurance
Embedded Investing
Here is also a more thorough explanation in case we missed something important above.

1. Embedded finance definition

Typically embedded finance refers to the integration of financial services or products into non-financial platforms or apps, such as e-commerce websites, social media platforms, or mobile apps. It allows customers to access financial services seamlessly within the context of their daily activities, without having to navigate to a separate banking or financing platform.

Embedded finance also allows financial platforms, such as lending or brokering to expand their offering by integrating complementary services on their platform.

2. What is embedded finance

Embedded finance is often facilitated by seamlessly integrated application processes or application programming interfaces (APIs), which allow different systems to communicate and share data. The key differentiator between embedded finance and traditional finance is that embedded finance allows customer to finish the application process without having to switch to a other service.

3. Popular examples about embedded finance

For example, an e-commerce platform could offer an integrated lending service, allowing the customers to get a financing for their purchases without leaving the e-commerce platform. Another example is an invoicing app that allows users to finance their invoices without leaving the app. Embedded finance can be used also in launching partnerships between financial institutions. For example a consumer lending broker can easily embed insurance services as a part of their platform.

4. Benefits of the embedded finance

‍Potential to improve financial inclusion by making financial services more accessible and convenient for a wider range of customers.

5. Embedded finance vs banking as a service

Embedded finance and banking as a service (BaaS) are both terms used to describe the integration of financial services into non-financial platforms or applications. However, they differ in their focus and scope. Embedded finance typically refers to the integration of specific financial products or services, such as insurances or lending, into non-financial platforms or applications. The goal of embedded finance is to make financial services more seamless and convenient for users. Banking as a service, on the other hand, is a broader concept that refers to the provision of a full suite of banking services, including deposit accounts, card issuance, and lending, to third-party platforms or applications. BaaS enables non-banking companies, such as fintech startups or e-commerce platforms, to offer banking services to their customers without having to build their own banking infrastructure. In summary, while embedded finance focuses on the integration of specific financial products or services, BaaS provides a full suite of banking services to third-party platforms or applications.

6. Embedded finance market size

According to a report by FutureMarketInsights.com published in 2022, the global embedded finance market is likely to grow at a strong CAGR of 16.4% between 2022 and 2032. The market is valued at US$ 54.3 Billion in 2022 and is likely to reach US$ 248.4 Billion by 2032. The report highlights the rising number of fintech brands expanding their roots in the insurance market and enhancing innovative platforms building contextual insurance products and services, which is accelerating the growth of the embedded finance market in new market spaces. As digitization increases in the corporate structure, the digital lending sector flourishes and transforms. Fintech companies are evolving and introducing new technologies to enhance the customer experience. The Indian insurance industry has also helped in booming the embedded finance market, easing the complex processes through cutting-edge fintech. It is important to note that the projections are subject to change as the market evolves and new trends emerge.

7. Embedded finance trends & future

Increased Adoption of Embedded Finance Platforms: The use of embedded finance platforms is rapidly increasing in the embedded finance space. Using embedded finance platforms financial services can reduce their go to market -time to the zero, also enabling businesses to integrate financial services more easily and efficiently into their products or services.

Personalization and Customization: Embedded finance providers are increasingly offering personalized and customized solutions to meet the unique needs of customers. This trend is expected to continue, with businesses leveraging data and technology to provide tailored financial products and services.

Collaboration between Fintechs and Banks: Collaboration between fintechs and traditional banks is on the rise, with both sides recognizing the benefits of working together. This trend is expected to continue, with more partnerships and collaborations between these two sectors.

Increasing focus on Financial Inclusion: Embedded finance has the potential to improve financial inclusion by making financial services more accessible and convenient for a wider range of customers. This trend is expected to grow, with businesses and policymakers alike recognizing the importance of financial inclusion for sustainable economic growth.