In our first podcast episode of “Embedded Finance: Unplugged”, we had the pleasure of delving into the world of embedded finance with our CEO, Nirav Patel. The conversation shed light on the incredible potential of this rapidly evolving sector and how Andaria is at the forefront of innovation. Let’s explore the key takeaways and insights from this engaging discussion.
Embedded finance is the seamless integration of financial services into non-financial offerings. Over the past few years, it has emerged as one of the most disruptive and valuable sectors in fintech. Nirav highlighted that embedded finance is projected to reach a staggering value of 7 trillion dollars globally over the next decade. But how did we get here, and what drives this transformative industry?
The driving forces behind embedded finance:
- Technological advancements: The growth of embedded finance is closely tied to technological advancements. Over the last five years, there has been a significant rise in API Suites and APIs, fostering the evolution of fintech.
- User experience: Embedded finance addresses the growing need for seamless user experiences. Customers no longer want to jump between platforms to execute payments. They seek convenience and efficiency, driving the growth of this industry.
- Digital transformation: The COVID-19 pandemic accelerated the digitisation of platforms and ecosystems. This digital transformation has further fueled the demand for embedded finance solutions.
- Regulatory changes: Open banking and regulatory changes have played a pivotal role in shaping embedded finance. It has paved the way for financial institutions and non-financial players to offer integrated financial services.
- Investment and innovation: Investors have recognised the potential of embedded finance and are backing its growth. Entrepreneurs are innovating in this space, creating new opportunities and solutions.
Embedded finance is not limited to a single sector; it has a broad reach. From membership-led sectors like sports teams to mobility such as private jets, Andaria can offer embedded finance solutions while ensuring compliance with regulations related to that area.
We have also been involved in the financial services space, specifically investment and trading. We offer our multicurrency IBAN solution that enables cost-saving for their clients, making it easier for users to credit their investment accounts without incurring FX fees. This demonstrates the versatility of embedded finance, as it can cater to both non-financial and financial sectors.
Andaria’s core focus lies in providing flexible and agile solutions to its clients. We don’t aim to create bespoke solutions but rather customise our foundational offerings to meet each client’s unique needs. This adaptability, coupled with a strong emphasis on security, positions us as a key player in the embedded finance landscape.
Embedded finance is just scratching the surface of its potential. As the industry evolves, we can expect deeper integrations, global expansion, and regulatory developments to shape its trajectory. Technologies like blockchain and artificial intelligence will play crucial roles in enhancing security and efficiency within the sector.
At Andaria, the journey has only just begun. Over the next 12 to 18 months, we aim to make a significant impact in the embedded finance space, aspiring to become the go-to provider in the industry. Our dedication to innovation, flexibility, and security positions us as a trailblazer in this space, and as we move forward, we eagerly anticipate the continued evolution of embedded finance and the groundbreaking solutions it will bring to the world of finance.
Listen to the full interview with Nirav on our YouTube channel
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