Embedded finance is hot right now, and with good reason. Juniper Research expects the embedded finance market to exceed $138 billion by 2026. There is a noticeable boom going on, as the market valuation was $43 billion in 2021. This surging advancement of fintech enables businesses to give consumers what they want. After all, a happy client is what every company wants. Embedded finance is the missing jigsaw piece to boost your profits. It can help give your business a welcome competitive advantage.
What Is Embedded Finance?
FinTech is helping companies to become competitive in more innovative ways. Companies are engaging with finance on a whole new level. It’s an exciting time for tech companies. The power of these financial mechanisms is clear to see. Many are now becoming part of business strategies. Organizations are actively using them to create new income streams.
So what is embedded finance, and how does it work? It is an integration of financial services or products into non-financial businesses. The implementation can go into business processes, mobile applications, or sites. It allows non-financial companies the opportunity to offer credit, insurance, payments, or savings.
Consumers Are Not Scared Of Embedded Finance
If you think it won’t work in your business, think again. Solarisbank and the Handelsblatt Research Institute found that 61% of German consumers would buy financial services from an online company. If you didn’t do it in 2021, it’s still not too late to jump on board the embedded finance train. Businesses need to stay competitive in any market. It makes sense to use this incredible tool to your advantage. If consumers are not scared of it, why should you be?
How Embedded Finance Can Help You Beat Your Competition
All businesses are searching for something to beat their competitors. It’s all very well following the latest trend and implementing it in your business. But the best way to be more competitive is to use something that will work. Embedded finance has changed the financial landscape forever. Here are some ways you can use it to improve your business and make it more competitive.
Streamlining Processes For Your Consumers
When you use embedded finance, you streamline the whole financial process for consumers. These happy customers can do everything all in one place. The customer doesn’t have to visit a bank to get credit, as they can do it all in one go. It can lead to consumers spending more as they have instant access to more money. The positive means consumers will share their experiences with others.
Increase Your Profits
These integrations can help improve the financial lives of both businesses and consumers. Businesses earn more money as consumers are more inclined to complete a purchase. Consumers can do everything in one place and complete their transactions with ease. This business confidence increases business profits as more consumers complete a sale. Also, a possibility of repeat business, as consumers stick with the best solutions.
Get Inside The Brains Of Your Customers
Imagine being able to understand more about your consumers. Embedded finance gives you the capability to do that. You can find out about your consumers’ spending habits and needs. This information helps you fill in the missing pieces in your marketing strategy. It’s also perfect for product development. It is like having access to the ultimate consumer panel with accurate deep intel. It all helps to boost your conversion rates.
The Importance Of Embedded Compliance
When laws, policies, and regulations change, it’s hard work for compliance teams to keep on top of it all. Everything changes so fast you need to keep a finger on the pulse of what is happening. So what is the key to managing compliance well? It is having access to immediate answers to regulatory questions. Embedded compliance works by unifying regulatory knowledge in a single repository.
It can help your business in three critical ways:
- Speed up your growth
- Decrease costs
- Reduce risks
The Advantages Of Embedded Compliance
There are many advantages of using embedded compliance. Here are a few examples so you can see how they can benefit your business.
- Add-On – Embedded compliance can work on top of any system. This flexibility means you have access at any point, wherever you are.
- Digitize – You can take all your current compliance processes and digitize them.
- Pre-Activity Checks – You can make compliance checks on a pre-activity basis. This system means that you can avoid compliance breaches.
- Post-Activity Checks – Compliance checks can be embedded into existing processes and tools. This automation means that you can reduce post-activity checks.
- Replace Policies – You can replace policies with accurate and actionable regulatory answers. You can do this for your most common and urgent regulatory questions.
The Best Solution For Embedded Compliance
The primary benefit of embedded compliance is using it throughout your company. You can have it in every digital transaction. Apiax is a fantastic example of a company that has mastered the art of embedded finance. Apiax specializes in building compliance infrastructures for all businesses. Apiax recently won a WealthBriefing Swiss Award for its embedded compliance solution.
Planet Compliance asked Apiax’s CEO, Philip Schoch, about the power of embedded compliance. Philip said, “By embedding compliance into their systems, financial institutions are able to get instant answers to regulatory questions when and where they are needed and focus on what matters most; which is to grow and reduce the time spent on compliance checks.”
The Future Of Embedded Finance
Embedded finance is your secret weapon to catapult your business to greater profits. It can also help to promote your brand further. The easiest way is to embed it into your business processes, systems, and tools. You can then access it whenever you want, with the press of a button.
It is imperative to make embedded compliance a priority. Instead of your compliance team spending hours looking for everything themselves. You can end worries about compliance and drive your business forward. It’s exciting to think about what will come next. Given its versatile nature, this is only the beginning.
Sally Leslie
Sally creates B2B content for businesses, entrepreneurs, and startups. She has a PR degree and a background in business development and sales. She is passionate about motivation, time management, and the changing world of finance.
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