Embedded finance: five charts

Discover just what embedded finance is, and how it can bolster your propositions in just five charts

By now, everybody in the industry knows that embedded finance is when non-financial businesses offer financial options to their customers via proprietary or third-party tech. What not everybody knows is in the rest of this article... 

Embedded finance can be broadly split into four main areas.

The benefits of adding embedded finance to your propositions are becoming clearer as we look at the success of GPS customers - like double unicorn Zilch, who has more than two million customers.

So we can see embedded finance has proved successful for some businesses and their growth, but there are further reasons why embedded finance could be key to future-proofing your propositions. 

Embedded finance is now a part of everyday life in the UK. From Global Processing Services’ customer WeLab offering BNPL, to a high street retailer offering insurance on the electrical items you buy, you - and your customers – are becoming more used to the convenience of embedded finances in everyday purchases.  

A study from Tuum reveals that 44 per cent of consumers are likely to want to take out insurance on items like holidays or mobile phones at the checkout; 41 per cent would like ‘Buy Now, Pay Later’ (BNPL) options, and 34 per cent would be likely to take out loans for high value items. 

The demand is there from consumers, but is your business ready? 

Businesses who have embedded finance will often use a Banking-as-a-Service (Baas) provider to add banking capabilities to their business. It means if you have a business without the capability to offer financial services, you could potentially integrate financial services into what you offer your customers.  

We work with partners, like Mambu who service more than 200 customers, with over 53 million end users, to help enable businesses offer embedded finance and BaaS.   

And the numbers speak for themselves.  

Want to find out more about embedded finance and how it can benefit your business? Get in touch. It’s more straightforward to get started than you think.