Embedded finance is an emerging software distribution model that is promising—or threatening—to reshape the financial services industry. Although the model allows financial companies to distribute their products more cost-efficiently and widely, it also requires them to surrender control over the customer relationship to nonfinancial companies. 

THREE KEY QUESTIONS THIS REPORT WILL ANSWER:

• What is embedded finance, and what will it mean for financial institutions?
• What opportunities does embedded finance represent, and which FIs are best-positioned to seize them?
• What risks does participation in embedded finance entail, and which financial institutions may find the transition hardest?

WHAT’S IN THIS REPORT? This report defines the concept of “embedded finance” and explains its potential impact on how financial services and products are distributed and consumed. It also provides real-world examples to illustrate how embedded finance works in practice.

KEY STAT: More than a third of fintech professionals expect Big Tech firms to distribute financial services to consumers by 2030, and nearly one-third expect them to dominate the financial services market—indicating that Big Tech companies are likely to control customer relationships within the next decade.