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Editor's Choice Embedded Finance World-Region-Country

What Innovations Can we Expect in the Future for the World of Embedded Finance?

This April, The Fintech Times is focusing on all things embedded finance, the integration of financial services into non-financial products and services. As the space rapidly develops, we look to highlight the latest developments, initiatives and challenges embedded finance has to offer and overcome across the globe. 

Concluding our focus on embedded finance this month, we now turn to the future. Having looked into how embedded finance solutions have impacted various sub-sectors of finance, where could future innovations lead us?

Andrew Martin, CEO of SMEB
Andrew Martin, CEO of SMEB

Andrew Martin, CEO of SMEB, a fintech company dedicated to supporting small businesses in the UK, explains just how much of an impact embedded finance could have on the future: “Embedded finance will lead to some amazing innovations such as individualised pricing based on your history, credit rating, and loyalty. It will bring financial freedom to spending while making all activity real-time.

“The financial ecosystem will change dramatically as decision-making will become real-time with no need for deferred decisions. Even our customer support will morph into augmented advisors, enabling the easy and automated utility switching to more suited providers.”

To find out more about the potential impact of embedded finance, as well as the biggest innovations the space could bring to financial lives across the globe, we reached out to industry leaders.

Ensuring ‘a succinct customer experience’

Andy Davies, senior global payments specialist at Endava, also discusses how significant the impact of embedded finance could be: “Embedded finance is set to transform both the payment process and revenue streams for merchants and buyers.

Andy Davies, Senior Global Payments Specialist at Endava:
Andy Davies, senior global payments specialist at Endava

“Last year, EY conducted a survey of 20 global financial technology leaders of whom 94 per cent ‘believe the key to success is the relevance of a financial product in addressing customers’ real-time needs’. Customer centricity will be at the centre of the favoured innovations.

“Through integrating financial services into their offering, businesses are ensuring a succinct customer experience, whether in retail, automotive, insurance, or banking. Consumer expectations are changing, and reduced friction sits at the heart of many consumer buying journeys. In the future, you can expect to be able to park your car and walk away. Through embedded finance models, the car will take care of paying for the space when you leave, like a virtual valet.

“These joined-up approaches to service and finance make it far simpler to gather richer data insights, including customer location, visiting frequency, and their preferred payment method.

“Data collection is essential to the rapidly evolving AI market. For example, AI can be used to analyse activity to automate the prevention of fraudulent activity. We expect to see it play a fundamental role in detecting both fraud and potential security breaches. Looking ahead, it will become a necessity as immediate payments become more widespread.

“Over the next ten years, I predict a continuation of the move towards embedded payments as the new norm. For some markets, it already is. As adoption continues to increase, we can expect to see more options to create extra revenue streams, and innovative tools introduced to protect both consumers and merchants themselves. ”

Unlocking the ‘immense potential’ of embedded finance

Joan McGowan, head of US financial services consulting at analytics platform provider SAS, also explains: “Embedded finance will likely become more prevalent across industries, including e-commerce, health care, travel, hospitality and more, and we can expect to see a continued proliferation of embedded finance solutions.

Joan McGowan, head of US financial services consulting at SAS
Joan McGowan, head of US financial services consulting at SAS

“GenAI and AI-powered algorithms will drive the most meaningful innovation by enabling institutions to contextually analyse vast amounts of data to offer real-time financial insights, fraud detection, personalised recommendations and inclusivity.

“The Internet of Things (IoT) and wearable devices offer opportunities to further integrate financial services into everyday objects and experiences. For instance, IoT-enabled devices could facilitate automatic payments for utility bills or groceries based on consumption data. Blockchain technology and cryptocurrencies have the potential to make transactions more secure, efficient and transparent. We might see innovations such as decentralised finance protocols integrated into various platforms for lending, borrowing and other financial activities.

“Embedded finance holds immense potential for transforming how consumers and businesses access and interact with financial services. But it will be essential to address challenges such as security, privacy, and regulatory compliance for solution providers, merchants and consumers alike to realise the full benefits and potential of these innovations.”

Looking forward to a ‘brighter, more convenient financial future’
Denise Johansson, co-founder and co-CEO of Enfuce, Embedded finance innovations
Denise Johansson, co-founder and co-CEO of Enfuce

For Denise Johansson, co-founder and co-CEO of Enfuce, the female-led issuer processor, collaboration could be the biggest factor in driving innovation: “One big benefit of embedded finance is how it encourages collaboration between retailers, payment providers, banks and tech companies.

“This collaboration leads to innovative new solutions, pushing a whole range of industries forward and creating individual offerings that are exceptional in their specific area.

“More personalised offers, specifically tailored to our needs, is just the beginning. Banking as a service (BaaS) will empower businesses outside the traditional banking space to provide financial services, sparking innovation in unexpected places like retail, healthcare and infrastructure. It’s safe to say we can expect a brighter, more convenient financial future.”

Open banking driving innovation

Michael Bystrov, chief revenue officer at online payment processor Noda, also explains: “As we look to the future of embedded finance, open banking stands as a catalyst for innovation, driving the development of financial solutions that are more accessible, secure, and tailored to individual needs.

Michael Bystrov, chief revenue officer at Noda, Embedded finance innovations
Michael Bystrov, chief revenue officer at Noda

“The integration of sophisticated KYC mechanisms within open banking frameworks will be critical in safeguarding these advancements, ensuring that as financial services become more embedded in our digital lives, they remain secure and trustworthy.

“Anticipating the convergence of AI, blockchain, and IoT with open banking, we can expect a future where financial services are not only seamlessly integrated into everyday activities but are also characterised by an unprecedented level of personalisation and security, made possible through robust KYC practices.”

‘Embedded finance will redefine how we interact with financial service’

Finally, Eugene Krasicki, founder and CEO of neobank Keytom, breaks down which areas are likely to see the most impact: “Embedded finance is poised to become deeply integrated into our daily lives and business operations with several key innovations:

Eugene Krasicki, founder and CEO of Keytom, Embedded finance innovations
Eugene Krasicki, founder and CEO of Keytom

“Financial services will become universally accessible, eliminating banking deserts and financial exclusion. AI and machine learning will tailor financial services and advice to individual needs in real time.

“Smart contracts will facilitate automatic payments and agreements without intermediaries. Transactions will occur seamlessly, with payments made automatically in retail and bill payments.

“These innovations are just the beginning. As technology advances, embedded finance will redefine how we interact with financial services, making them more intuitive and integrated into our lives.”


  • Tom joined The Fintech Times in 2022 as part of the operations team; later joining the editorial team as a journalist.

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