Beyond Banking Apps: How Embedded Finance Is Reshaping Finance

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Ivo Gueorguiev News

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Ivo Gueorguiev, co-founder at Paynetics. Read Ivo Gueorguiev's full executive profile here.

Banking executives are clutching at straws to convince consumers to stay loyal. Competition is fierce as young, shiny, modern challengers are swooping in to rid consumers of legacy siloed systems that ignore individual needs. Consumers are running away from any sign of clunky, fragmented payment experiences because integrated payment experiences are now a baseline expectation.

This article delves deeper into embedded finance, exploring its core functionalities and how consumer interactions are changing. I’ll explore the benefits, the challenges and how to navigate the path toward successful implementation.Embedded finance goes beyond transactions. The technology can integrate financial services like telecom billing, utility payments, insurance options or wealth management tools directly within other apps and platforms.

This is facilitated by application programming interfaces that connect the embedded platform with the lender’s system for real-time data sharing. Instead of relying only on credit scores, lenders can leverage this data to make more informed decisions. Security and privacy are also paramount. Integrating financial services necessitates robust data security measures to safeguard customer information. Building trust hinges on transparency; businesses must be upfront about data collection and usage practices.

 

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