“Embedded finance is banking. As we head into the next inning of embedded finance adoption, we will see more banks, non-banks, and fintech platforms look for ways to deliver integrated and unique experiences to their end users. Incumbent players, with their long-standing bank relationships and compliance expertise, are uniquely positioned to enable their ecosystems to drive adoption at scale.” 

— Roy Andrew Ng, EVP, Chief Business Officer, Platform and Enterprise Products at FIS

Embedded finance is reshaping industries and redefining how customers interact with financial services. While the concept isn’t new, its adoption has skyrocketed, driven by a confluence of factors such as digitization, customer demand for convenience, and advances in technology like AI and blockchain.

In 2023, the global embedded finance market was valued at $82.7 billion and is projected to grow at a 21.3% CAGR over the next decade. This growth stems from the desire for seamless integration of financial services into everyday customer journeys. 

Traditional banks are no longer the sole players; non-bank entities are also capitalizing on this trend to unlock new revenue streams. The key to thriving in this ecosystem lies in four factors: trust, insight, convenience, and speed. Banks and brands that master these elements will dominate the landscape, forging deeper customer relationships and unlocking new value streams.

As regulations like the CFPB’s Section 1033 push for transparency and competition, banks and brands must adapt to stay relevant. Success in this evolving market requires innovation, trust, collaboration, and a customer-centric approach.

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