By now, you’ve probably heard about one of the most exciting evolutions in FinTech: embedded finance.
This is central to what we do at Orenda, as we offer accessible, flexible, and scalable embedded financial products that businesses can implement into their multi-channel propositions.
Embedded finance is a real game-changer for businesses operating in pretty much any sector you can think of – but what sits behind this latest buzzword, and how can you harness the benefits within your own organisation? This article breaks down everything you need to know.
What is embedded finance?
Embedded finance enables organisations to offer financial products that can be integrated into a range of customer-facing channels, including brand websites and apps. It makes transactions simple, quick, and more convenient. All-in-all, it’s an opportunity for brands to meet growing consumer demands through delivering a seamless, end-to-end customer journey.
It helps to think about embedded finance from a consumer perspective. In the first wave of FinTech, consumers were introduced to online banking and mobile banking. This opened up a whole new world of digital financial management, but there wasn’t a great deal of functionality. Then, consumers were introduced to new, innovative challenger banks (think Monzo who are leading the industry) that had smarter features and much more flexibility. However, this kind of FinTech still has its limitations.
The latest wave of innovation builds on the previous two. Embedded finance combines these earlier capabilities to produce a seamless customer journey that’s fully branded, where transactions are much less centred around the underlying bank provider.
And the evolution of embedded finance is picking up the pace. With new developments in the market, such as no-code/ low-code solutions, it’s now more accessible than ever before. This means that it’s not only financial entities reaping the benefits. Traditionally non-financial brands can make the addition of embedded finance to their offering to increase revenue streams, grow sales and retain more customers in the process.
Why is embedded finance so important?
For years, we’ve had to deal with what FinTech and consumer demands have thrown at us: ever more complex products and service offerings. The more advanced financial services become – think robo-advice and virtual accounts – the harder it becomes for brands to remain competitive in this space, let alone getting a foothold within a new market.
That’s why embedded finance is different. With it, all you need to worry about is focusing on your customers, your business development, and the products that you’re bringing to market. The bottom line? No more being left behind the curve.
How to get it right
If you’re new to the world of embedded finance, it may seem a little daunting; after all, FinTech is complex and expensive, right?
Well, it can be complex and expensive, but that doesn’t mean it has to be. Some of the latest developments around embedded finance include no code and low code solutions. This means you can build new financial products into your offering from scratch without the time, cost, and requirement for expertise that you’d traditionally expect.
With Orenda, you can choose from a whole range of financial products that you want to offer. All you need to do is drag and drop your preferred widgets into your existing site or app. Or, if you don’t have your own site, you can build your own fully customisable web or mobile app using our easy-build platform to create a slick, branded financial offering without the need for any code.
The result? Building your own FinTech ecosystem can be done in a matter of minutes at a fraction of the cost it would take to source an API developer to do it from scratch for you. And, since you’re selecting products from our best in class financial partners, all the tricky compliance and regulation issues are already taken care of.
Embedded finance is here to stay, but the solutions behind it are constantly evolving, making FinTech the new norm within an array of consumer-facing brands. The main takeaway is that it’s much more simple and attainable than most people might think.
If you want to explore how your business could benefit from the introduction of embedded finance, get in touch.