While almost any company can add banking products to their products and services, the financial services industry will cease to be independent and finance will suddenly appear everywhere. Embedded finance provides a tremendous opportunity for non-bank merchants to get closer to their customers, open up new revenue streams and completely change people's interactions with money. Learn Further about embedded finance on here https://geniusee.com/single-blog/what-is-embedded-finance-and-how-it-works. 

Embedded Finance

Traditionally, financial services such as payments and loans have been the exclusive prerogative of banks. After all, banks are highly regulated entities, and these institutions have long built their own special technology stacks. Together, these facts have made it virtually impossible for banking services to breach bank walls.

Paying Attention to Embedded Finance

Embedded finance will undoubtedly be one of the hottest trends in the world of financial services and the economy in general in the coming years. Renowned Silicon Valley VC Andreessen Horowitz recently noted that embedded finance can increase revenue 5x per client. So understanding how it works will not only help you read in depth, it will be a must for any product manager or innovator looking to significantly expand their product offering, improve user experience, and increase revenue.

Control Over the Payment Process

Embedded finance eliminates the need for banks, allowing any business to become a financial services business. One of the main advantages of being a financial services company is the ability to monitor the journeys of these paying customers. Instead of redirecting customers to third-party sites, businesses can now ensure that the entire process takes place under one digital roof.

Added Value to Customers

With finances in place, companies can completely rethink their customer relationship. By controlling the payment path, merchants can offer alternative payment methods and localized solutions that may be more convenient for their target customers. For example, if they are for the younger generation, Buy Now, Offer to Pay Later will help increase conversions.

Lower Costs

Another great benefit for businesses is that by setting up a checkout process, merchants can eliminate multiple intermediaries such as card networks or expensive payment providers, making it much cheaper to process payments.

Higher Revenue

On the other side of the balance sheet, companies can turn embedded finances into additional revenue streams. By lending to customers, merchants can earn cash income in the form of interest payments. The most obvious example is BNPL solutions that offer credit at the point of sale.