The rise of embedded finance
From a recent study and questionnaire, international IT consultancy Accenture found that in 100 non-financial companies in the US, 47% of respondents are already investing in and planning to launch embedded finance. It turns out that 88% of those who already introduced embedded finance into their business are happy with the integration, and 85% say it helped them attract new users.
For the uninitiated, embedded finance refers to the use of financial instruments by non-financial enterprises. It allows any type of company or online store to incorporate banking software directly into their websites or mobile applications using BaaS (Banking-as-a-Service) without diverting consumers to third-party portals. Customers, for example, will no longer need to input their credit card information for each transaction and will be able to pay in installments, get insurance, and so on.
Over the next five years, embedded finance growth globally is expected to be 215%. It will be contingent on financial service providers’ expanded availability of APIs (Application Programming Interfaces). The easy integration of these APIs will lower barriers to financial services access and give embedded financial service providers considerable new income potential.
There are a number of factors involved, importantly: 
Rebundling — smooth transition from fragmented and decentralized packages of services to umbrella-like offers. Services become attractive to more categories of users, and as a result, customer base increases. 
One-stop shops — all financial and non-financial transactions are carried out in one interface (including pay-in and pay-out services). 
Open banking — to supply part of the connective tissue for the embedded financial ecosystem. Platform and product suppliers will be able to include pay-in and pay-out procedures, as well as account aggregation, providing end to-end financial experiences. Many banks, like Halifax, Revolut, and others, have already implemented this.


High conversion rates, due to the fact that no further processes are required. Users who wish to buy anything will not be turned away due to a seamless payment system and fast checkout — there is no need for users to wait. When making a purchase, time is saved on things like loan approvals, bill settling, period for payment confirmation, and so on. 
New business methods (direct-to-customer sales, subscriptions) combined with a bid to distinguish out in a crowded market. 
Controlling cash flow (reduction of day sales outstanding). 
Add to this the fact that nearly nine out of ten people (according to the Linnworks survey of ordinary shop customers) agree that having a variety of payment choices makes it easier to make decisions and encourages them to spend more. In comparison to a year earlier, 78% of shoppers now favor convenience in e-commerce. 
According to a recent study conducted by Accenture, 87.5% of non-financial organizations that have begun to offer financial solutions have raised engagement levels, while 85% have drawn new clients.

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