Embedded Finance

Embedded Finance
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Embedded finance is here and having global impact. Are you ready for it? In Embedded Finance: When Payments Become An Experience , veteran growth strategists, entrepreneurs, and fintech disruptors Scarlett Sieber and Sophie Guibaud deliver a thought-provoking and page-turning discussion on the most impactful and exciting trend of fintech yet: embedded finance. In the book, you’ll explore the past, present, and future of fintech, from how embedded finance is being leveraged today by industry heavyweights like Google and Amazon to supercharge their customers’ experience to the offerings of smaller, niche players who stand poised to dominate their own corners of the market as their answer unmet customers’ needs. The authors present: ● Practical examples around the world of how embedded finance is being used today by technology companies and brands to redefine our online and offline retail experiences as we know them ● The key trends, players, and technologies that are paving the way for embedded finance to take a dominant position in our lives  ● The role, opportunities, and strategies for banks, technology companies and brands, providing them with all necessary tools to define their own embedded finance strategy ● The impact of embedded finance on society, consumers, companies, and the economy as a whole, highlighting the dominant force that is embedded finance for our future ● An exciting view of how our day-to-day lives will look like in 2030, powered by embedded finance An indispensable and eye-opening exploration of one of the most exciting and influential technologies in development today, Embedded Finance details a revolution in financial services, banking, and technology that has already begun. Are you ready?

Оглавление

Scarlett Sieber. Embedded Finance

Table of Contents

List of Illustrations

Guide

Pages

Additional Praise for Embedded Finance

EMBEDDED FINANCE

CHAPTER ONE THE NEXT FINANCIAL REVOLUTION

WHY NOW?

WHY US?

WHY YOU?

WHAT YOU NEED TO KNOW

NOTES

CHAPTER TWO THE ORIGINS OF EMBEDDED FINANCE

HOW WE GOT HERE: BANKING IN REVIEW

CATASTROPHE AS THE MOTHER OF INVENTION

THE TECHNOLOGY THAT MAKES IT POSSIBLE

THE BIRTH OF INSURTECH

FINTECH RISING

Lending Club

Early Approach

THE ENTRANCE OF THE NEOBANKS

Simple

Early Approach

SIMPLE

Moven

Early Approach

MOVEN

BEHAVIORAL SHIFTS ACROSS GENERATIONS

Case Study: Tinkoff

LOOKING ACROSS BORDERS: THE CASE OF CHINA

EMBEDDED FINANCE IS HERE

Summary

NOTES

CHAPTER THREE BIG TECH AND BEYOND

A MATCH MADE IN HEAVEN

MEETING EVERY FINANCIAL NEED

Digital Wallets

Savings Accounts

International Cross-Border Payments

Lending and Buy Now, Pay Later

BIG TECH IS PART OF CUSTOMERS’ EVERYDAY LIVES

BEYOND GOOGLE, APPLE, FACEBOOK, AND AMAZON

Uber

Grab

Case Study: Shopify

BENEFITTING THE END CUSTOMER

THE CASE FOR E-COMMERCE

WHY EMBEDDED FINANCE MAKES SENSE FOR BIG TECH

Summary

NOTES

CHAPTER FOUR EMBEDDED FINANCE IN THE OFFLINE WORLD

A LOOK INTO THE FUTURE: THE SUPER APPS

THE DATA PLAY

OFFLINE TO ONLINE

The Ancestor of Embedded Finance Offline: Cards

Invisible Payments

In-Store Shopping: A Fully Checkout-Free Experience

Buy Now, Pay Later

Klarna

Early Approach

BNPL in Practice

Affirm

Early Approach

Case Study: Katapult

The Internet of Things

The Connected Car: Tesla and Beyond

Tesla

Early Approach

Connecting Cars and Payments

The Internet of Things at Home

Insurance

Embedded Insurance in Practice

Qover

Early Approach

Ornikar

Early Approach

Ping An

Early Approach

Case Study: Ping An

THE IMPACT OUTSIDE FINANCIAL SERVICES

Healthcare

Case Study: Peachy Pay

Media

Telecom

WHERE DO WE GO FROM HERE?

Summary

NOTES

CHAPTER FIVE THE RIGHT INGREDIENTS ARE NOW IN PLACE

THE TECHNOLOGY: KEY PIECES ENABLING BRANDS

Artificial Intelligence

Mobile Computing and Digital Onboarding

APIs

Open Banking

Banking-as-a-Service

THE ROLE OF THE REGULATORS

Regulation: Europe

Regulation: US

Regulation: Asia

BaaS: THROUGH THE LENS OF A BANK

BaaS: US Banks’ Early Success

Case Study: Goldman Sachs

BaaS Is Not Just for the Big Banks

BaaS: European Banks’ Early Success

Case Study: BBVA

ClearBank

Solarisbank

Case Study: Banking Circle

BaaS: Asia and Beyond's Banks’ Early Success

THE FUTURE FOR BANKS

BaaS: Through the Lens of Fintech

Case Study: Railsbank

BaaS in Practice

Stripe

Early Approach

Case Study: Stripe

Checkout

Early Approach

Case Study: Marqeta

THE REAL IMPACT OF EMBEDDED FINANCE

Summary

NOTES

CHAPTER SIX A MORE SUSTAINABLE AND EQUAL WORLD

DATA AS A FORCE FOR GOOD

ACCESS TO CREDIT

THE IMPACT ON SMALL BUSINESSES

FINANCIAL INCLUSION IN THE GLOBAL SOUTH

FINANCIAL PRODUCTS FOR THE UNDERSERVED

THE GIG ECONOMY: THE NEW WORKFORCE

Uber and Grab

UPSKILLING TODAY'S WORKFORCE

SUSTAINABILITY

THE LIMITS OF EMBEDDED FINANCE

THE QUESTION OF IDENTITY AND PRIVACY

Identification versus Authentication

THE NEW WORLD

Summary

NOTES

CHAPTER SEVEN 2030: HOW EMBEDDED FINANCE TAKES OVER THE WORLD

A DAY IN THE LIFE, 2030 EDITION. Mia

Mike

WHAT ELSE CAN WE EXPECT FROM LIFE IN 2030?

Data

Insurance

Health

Marketing and Advertising

Sustainability and Inequality

The Convergence of Online and Offline

The Wallet of the Future

The Interplay of AI and Human Decisions

The Future of the Web

THE VIRTUAL WORLD OF THE FUTURE

The Metaverse in Practice

AN EMBEDDED REVOLUTION

NOTES

ACKNOWLEDGMENTS

ABOUT THE AUTHORS

Index

WILEY END USER LICENSE AGREEMENT

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“The next phase of insurance is going to see two directions: embedding insurance into real-world services that can be delivered or accessed digitally, and incorporating real world services as features or benefits into insurance products. Integrated digital providers have shown the path by redefining industry boundaries and bringing together value propositions in a powerful way.”

—Jonathan Larsen, Chief Innovation Officer, Ping An

.....

Banks foreclosing on the homes of buyers who were encouraged to take out a loan they couldn't afford reinforced this perception. Fintech companies capitalized on this in the early days, emphasizing that banks make money when customers suffer, when they can't pay off their credit card balance every month, or when they overdraft their account. Customers wondered with some justification if their bank was even on their side. This misalignment of interest between banks and their customers led to further alienation and made consumers more likely to seek out nonbank solutions.

This misalignment is not just theory. In 2020, US banks in aggregate collected about $8.8 billion in overdraft fees. This is an unusually low figure from a very unusual year (Figure 2.1). The previous year, banks collected over $12 billion. JP Morgan Chase and Bank of America collect the most in absolute dollars, but overdraft contributes a smaller percentage of their bottom line than regional and midsize institutions.

.....

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