Intelligent SME.tech Issue 26 | Page 39

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INDUSTRY UNLOCKED //

Adrian Toynton , Head of Banking Solutions , APAC , FIS
Businesses are seeing that creating a streamlined and frictionless process can boost revenue streams and expand their offering into adjacent services – providing more value for their customers in the process . Through the use of APIs , businesses also have the opportunity to collate data and understand how to better serve their customers . Having greater visibility of their transactions enables businesses to recommend tailored products for their consumers and personalise the experience .
What Embedded Finance brings
Banks aren ’ t the only ones to benefit from embedded finance though . The concept appeals to both consumers and businesses . From the consumer ’ s perspective , the Embedded Finance model streamlines financial processes via a ‘ one-stop shop ’ approach that makes it easier for people to access goods and services when and where they ’ re needed .
From a business POV , these innovations allow businesses to reinvent the services they offer customers , making financial services an integral part of the user journey . As an example , we have seen car manufacturers move into the space through embedded insurance . The likes of Tesla are now offering their insurance across the range of vehicles , streamlining the process for consumers and – in some cases – reducing the cost of the insurance overall .
Embedded Finance is the future
As Embedded Finance becomes more popular , financial institutions need to act now to modernise their platforms and have an open API strategy ready to provide BaaS . The priority is to deliver unique differentiating digital experiences that attract and retain new customers . The quality , depth and richness of the customer experience is ultimately powered by the core system . If that core is cloud-enabled via microservices and APIs then the bank is well-positioned to open new channels , using API-based services to connect with partners , regulators and different parts of the bank itself .
Embedded Finance has the potential to change how financial services are consumed and it is the financial institutions that stay ahead of these innovations and deliver the best solutions in the market that will see the most benefits . �
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