Embedded finance is an emerging trend that has been gaining more traction in recent years. It refers to the integration of financial services into the customer journey, allowing customers to access banking services in the context of the product or service they are using. This can be seen in companies such as Amazon, PayPal and Apple, who have all integrated banking services into their customer experience.
The role of banks in the embedded finance era is changing significantly. Banks are no longer the gatekeepers to financial services, as companies such as Amazon and Apple have become just as powerful. This has resulted in a shift in the banking industry, as banks are now competing with these tech giants for customers. Banks are also now being forced to become more innovative in order to keep up with the competition.
Banks must now focus on creating an integrated customer experience, providing customers with personalised banking services and products. This requires banks to collaborate with technology companies, leveraging their expertise in data and analytics to provide customers with tailored advice and services. Banks must also ensure that they are compliant with regulations and data security standards, while also keeping up with the latest technologies.
In order to remain competitive in the embedded finance era, banks must also focus on developing new products and services that are tailored to customer needs. This could include offering products such as mobile banking apps, digital wallets and peer-to-peer payments. Banks must also ensure that they are providing customers with the best customer service possible, while also ensuring that they are keeping up with the rapidly changing technology landscape.
The role of banks in the embedded finance era is evolving, and it is clear that banks must adapt to the changing landscape in order to remain competitive. Banks must focus on developing innovative products and services, while also leveraging technology to create a seamless customer experience. By doing this, banks can ensure that they remain competitive and continue to provide customers with the best banking experience possible.