Embedded Finance: 3 benefits to the consumer

3 minutes

As the world becomes increasingly more digitized, so does the way we handle our finances. Em...

As the world becomes increasingly more digitized, so does the way we handle our finances. Embedded finance is the next big thing in the financial industry, and it's changing the way we all think about and interact with money. In this article, we will be exploring how embedded finance is changing the fintech industry, and the top three benefits of embedded finance for the consumer. We'll then discuss how your business can take advantage of this new software by hiring Product Managers. 


So, what is embedded finance? 


Embedded finance involves integrating financial services into non-financial applications, such as social media, e-commerce platforms, and other digital platforms. This approach simplifies financial transactions and creates an intuitive user experience for consumers, so it’s no surprise that the technology is making waves across the United States. In 2021, embedded finance reached $20 billion in revenues according to McKinsey. They estimate the market will double in size in three to five years. 

It's without a doubt that embedded finance is revolutionizing the way we manage our finances. But why? Here are just three of the many benefits embedded finance brings the consumer: 

  1. Convenience 
  2. Accessibility  
  3. Personalization  


Three benefits of embedded finance for the consumer: 

1. Convenience  

By embedding financial services into everyday activities, we can perform transactions quickly and easily without having to switch between different apps.  

For example, an e-commerce platform that has embedded finance can offer customers the option to pay for their purchases using digital wallets or mobile payments, without having to leave the platform. This makes the payment process seamless. It's also more secure than traditional payment methods. 


2. Accessibility  

With embedded finance, people who previously had limited access to financial services can now easily access them through non-financial applications. This includes people who are unbanked or underbanked, who may have difficulty accessing traditional banking services.  

By integrating financial services into non-financial applications, you can reach a broader, untapped audience and provide them with the financial tools they need to manage and move their money. 

3. Personalization 

With the increasing amount of data available, fintech providers can offer more personalized services to consumers. This can be achieved by using machine learning algorithms that analyze data to provide customized financial services. Personalized financial services can be integrated into non-financial applications, offering a seamless and highly personalized experience to consumers. An experience that the majority of consumers are actively seeking out in the modern day. 


Challenges of embedded finance: 


With any new technology, there are also potential challenges with embedded finance. One of the biggest concerns is data privacy and security. With financial information being shared across different platforms, there is a risk of data breaches and unauthorized access to sensitive information.  

Businesses looking to invest in embedded finance should consider building out their product marketing team. Product marketers are well-versed in marketing new product launches to audiences and will be instrumental in selling its benefits and solutions to consumers. 

Despite any minor concerns, the future of embedded finance is bright and increased adoption means increasingly seamless customer journeys. These are pivotal differentiators in a crowded market. 

What role does a Product Manager play in the develop of embedded finance?

A Product Manager plays a crucial role in the development of embedded finance by identifying market opportunities, developing product strategies, and working with cross-functional teams to ensure a successful launch. They also determine the specific financial services to be embedded, understand the regulatory environment, and ensure that the product is user-friendly and meets customer and business needs. 

Organizations looking to invest in product for embedded finance should be searching for product people with domain knowledge who can bring experience in consumer facing fintech and payments products, particularly around digital wallets and mobile payments. This level of expertise will see the successful launch of embedded finance in your organization. 


Employing the right Product Manager for your business 


Looking for more advice on how to hire talent that will develop embedded finance within your organization? We can help.  

Whether you’re searching for Product Marketers or Product Managers, our specialist employment consultants can support your unique search. Get in touch with the team or upload a vacancy to start hiring with 3Search and get the best recruitment experience you will ever have.  

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