Over the years, mainstream finance has gone from being a buzzword to a concept that will radically change the way businesses and consumers interact with financial services. The best way to understand embedded finance is to seamlessly integrate these financial services with a non-financial company's product or service.

Even buying a car from a company like Tesla has had a positive impact on embedded finances. Once a car is purchased, Tesla offers customers the option to purchase insurance directly, rather than contacting a third-party insurer.

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Customer Benefit

There is no doubt that consumers will benefit from the proliferation of embedded financial solutions. Perhaps the most important advantage embedded finance brings to consumers is the elimination of many pain points. Unnecessary steps in the path to purchase are eliminated and friction when buying the product is removed, resulting in greater convenience for consumers. In the past, consumers had to save money, wait, or get a credit or credit card to cover relatively high up-front costs.

Business Value

Retailers can also use embedded finance to diversify their revenue and increase brand loyalty. Because customers purchase these financial services directly from the company, it is possible to receive payment fees and insurance premiums in addition to the initial purchase rather than relying on a third party.

Advanced Customer Insights

Advanced customer insights can also be gained from clients using embedded financial solutions. By using data collected from customers' credit score details, businesses can gain a deeper understanding of customer information and have a better matching experience.

Wealth Management

From payments and loans to insurance and wealth management; There seems to be no end to the areas where brands can add embedded finance. When it comes to integrated finance, apps like Acorn, which automatically reverse users' backup changes, are just the tip of the iceberg, and innovation is a hallmark of this technology.