Three Unique Embedded Fintech Distribution Models Growing Fast


Embedded financial services– whereby any company layers financial services into its offering – is all the rage in fintech. Indeed, I’ve also been a longtime proponent.

Yet for many, what this means in practice remains amorphous. To make this real, we cover three rapidly growing and exciting embedded fintech categories.

1. Marketplaces embed financial services to turbocharge their service

An ecommerce marketplace brings merchants and consumers (sometimes businesses themselves) to meet and transact – think eBay or Amazon
on the consumer side and Alibaba on the business side.

Embedded financial services can be a win-win.

Many merchants (particularly small businesses) face a ubiquitous challenge: capital constraint. And with more capital, they would purchase more inventory to sell more on the marketplace.

Whereas traditional financial services can be hard to access, expensive or require personal guarantees, marketplace providers benefit from unique structural advantages. They can acquire merchants cheaply –…

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