Embedded finance is the business model that helps in paying the bills, transferring money, purchase, and selling goods and services digitally through online mode in just one click that is gaining attention these days. Today, Amazon, Google, Paytm, and others are also trying their luck for market share in consumer financial services.
Embedded Payments
Embedded payments allow us to make payments from a single place without much hassle liquid cash or swipe cards. Food-delivery apps such as Zomato and Swiggy and dunzo etc. enable users to make purchases payments. These apps help consumers to make payments without switching between apps.
Embedded Card Payments
Embedded cards allow end-users to transfer funds electronically from one account to another account and to make purchases up to the limit or more of the card many platforms issue smart cards, virtual cards. These cards are alternative to cash. They are safe and secure as all the information is encrypted.
Embedded Lending
This removes the need for using third parties, lengthy processes customers can get personal loans at a single click of a button.
Embedded Investments
It simplifies the investment process by offering users a single platform to invest and manage their money. Embedded Investments allow the users to invest in the stock market and compare the different investments in mutual funds, retirement plans, without leaving the platform they’re on. Example – up stock, policy bazaar, etc
Embedded Insurance
Technical integration is important in selling insurance policies. as people are becoming more and more tech-savvy, provided the complexities in the traditional method of embedded finance is a much more viable option. Because it helps the insurance companies to approach customers easily.
Embedded Banking
In this banking-like services are offered by non-financial players. It replaces the savings accounts provided by banking institutions. From a single platform, you can make investments, apply for loans, apply for smart cards, or manage your transactions. This offers users a seamless banking experience. Embedded banking services are cost-effective compared to normal banking services.
Conclusion
Technology bridges the gap between financial services and customers. Embedded finance makes access to financial services fast and hassle-free, thereby improving the satisfaction of the customer.
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