Embedded Finance is an innovative way to create and run a new future of finance, digitally empowering the entire financial ecosystem. Capable of innovating and adapting current financial systems, “shaking” into a new future of finance, and creating a completely new financial ecosystem.
Embedded finance is a fintech innovation to create a new future of finance, enabling neobank, digital payments, co-branded cards, lending, and investment in a single solution that empowers other players via API and other means. Example: Embedded Payments, Embedded Credit, Embedded Insurance, Embedded Investments, etc.
Neobank is a financial service provider that provides financial services to consumers through digital channels. It can be a mobile app or a website or a computer program or a kiosk or even a human teller. It is a company that offers financial services to customers without having a physical presence. Example : Fi Money, Jupiter, FamPay, Mahila Money, Razorpay, etc.
Digital Payments are the new way to pay, offering greater convenience and security for all parties involved. Digital payments have been around for a while, but have only recently started to show their true potential. The world is moving to a cashless society, thanks to the rising number of people going online. The internet has completely changed the way we live and do business, and now people can easily pay for almost anything they need online. With the increased usage of smartphones, users are becoming more and more comfortable with making payments with their mobile devices. For example, if a user wants to pay for a product or service, he or she can use a credit or debit card, or a bank account, or UPI. As we move toward a cashless society, users are looking for more convenient and secure ways of making payments. Example : Google Pay, PhonePe, Paytm, Paypal, Samsung Pay, Apple Pay, etc.
Co-branded cards are cards offered by partners that are branded with both the partner and the issuers logo. Co-branded cards are issued by banks and the credit cards are offered under a business model in which the co-branding partner pays the issuer for the right to issue its cards on the issuer’s payment network and offer cards with its brand name on them. The bank can also provide other services to the co-branding partner, such as payment and data processing services. Example : Amazon Pay ICICI Bank Credit Card, Flipkart Axis Bank Credit Card, Yatra SBI Card, MMT ICICI Bank Signature Credit card, Axis Bank Vistara Signature Credit Card, etc.
When a business is seeking funds to start or expand, they often apply for a loan from a bank or an investor. Banks and investors are the main providers of finance, but they have to assess the risk of default by the borrower. This is the reason why a business may be turned down for a loan despite having a viable business plan. The risk of default is high, especially if the business is a startup. The business owner then has to resort to going to a financial institution such as an investment bank or an alternative lender. Example: Hydrogen, Modulr Finance, Lendflow, HUBUC, Google (Alphabet Inc), etc.
Digital capital investment is a new way of investing money available in the market. It is a form of fintech that provides financial services to individual and business customers. Digital capital investment is a new way to invest money, and helps customers to borrow money, make money and save money. Digital capital investment helps people to spend less, save more and borrow more with a variety of financial products. Example : Zerodha, Groww, Upstox, Phillip Capital, Motilal Oswal, etc.
Embedded finance refers to the technology that enables and unleashes the power of financial transactions, possibilities, business, and hence the life of the people. Embedded finance is the future and the future is now. In the times of dramatic changes in the international financial system, the Web3 technology is one of the most promising areas of development. The rapid development of the industry of digital assets, the emergence of new protocols, the introduction of new standards, the formation of new business models and the growing number of participants have created a sufficiently attractive environment for the companies and investors of the FinTech sector.
Web3 is a new decentralized internet. It’s a term for the interface between the existing web and the new decentralized web. Web3 has been used by developers to describe a vision of a more open, more secure, and more decentralized way of interacting with a web of decentralized applications (DApps). In the Web3 vision, the users have full control of their data, identity, and funds, and applications run as decentralized autonomous organizations (DAOs).
It’s no secret that the world of finance is changing. There are new methods and technologies emerging every day. FinTech is changing the way people think about their finances, their investments, and their spending. Even with traditional finance, people are finding new ways to spend their money. Mobile banking is growing faster than traditional desktop banking. People are starting to make major purchases on their phones and tablets.Co- branded cardsEmbedded CresitEmbedded FinanceEmbedded InsuranceEmbedded InvestmentsEmbedded PaymentsFintechNeobank