In episode two of our new video series, A beginners guide for brands: What is embedded finance, (powered by Finastra) we get granular and discuss the scale of the opportunity.
Radha Suvarna, Head & Chief Product Officer, Embedded Finance / BaaS at Finastra and Lars Markull, Embedded Finance Advisor kick off by getting into the numbers. They begin with a review of that much touted and eye-watering value of embedded finance as the 7 trillion-dollar opportunity.
As Lars notes, stepping away from the hype, the time is right for a diverse range of non-financial brands to offer financial products to their customers, communities, and end-users. Whilst we may not be able to verify the accuracy of the numbers, both Radha and Lars agree, given the sheer number of potential distributors and need, it’s huge.
When it comes to the scale of embedded finance, to bring it to life, Radha and Lars analyse some of the potential use cases.
As noted, the future of embedded finance is wide, broad, and deep. Finastra is zeroing in on a number of interesting use cases, including embedded lending. There is a clear opportunity here, beyond BNPL and needs to be thought of as moving beyond the reach of existing lending products and not simply replacing them.
That means a broader reach, underpinned by what a distributor knows about their users, such as in the vertical SaaS space. That will include both those who may have been declined financing elsewhere and those who may not have even applied in the first place.
This is a fascinating discussion of the scale of the opportunity brought to life through actual use cases. Wondering about the use case for cross-border payments? Listen to the full conversation to learn more.
Join us at FTT Embedded Finance & Super Apps on 16 May in London to hear from an impressive range of experts, including Finastra, and make sure you are up to speed with all of the exciting opportunities.
And keep an eye out for the next episode in the series where we explore the partnerships translating opportunity into reality.