Embedded Finance: Shifts in the Digital Distribution and Consumption of Financial Product
Recent technology and regulatory trends have dramatically lowered the barriers for non-financial, less-regulated firms to participate in the creation and digital distribution of financial products. Brands, non-financial software firms and fintechs are increasingly looking to leverage their complementary capabilities and large user bases to monetize opportunities centered around financial services. Downstream from this, financial services will increasingly be found in the digital experiences that add the most value and performance advantages to consumers—providing the ultimate customer-centric distribution model. This research feature sheds light on the underlying technology, business model and open finance regulatory forces contributing to this shift. The feature is a must read for existing manufacturers in banking, asset management and insurance, for whom this distribution model shift presents significant opportunity. For incumbent distributors, the shift presents both an opportunity to harness the underlying technology trends in the advisor toolkit, as well as a new and potentially significant competitive force.