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Banking is continuously changing , especially as the world becomes increasingly digital . Adrian Toynton , Head of Banking Solutions , APAC , FIS , tells us why Banking-asa-Service ( BaaS ) is instrumental in shaping the payments landscape into what it is today .

HE HOTTEST FINTECH sector

BNPL is just one example of the widespread adoption of ‘ Embedded Finance ’. This refers to the seamless joining of traditional financial services – such as payment processing , lending or insurance – with a non-financial service provider . It allows companies from all industries to layer in financial capabilities to their products and enhance their customer propositions .

Embedded Finance is continuing to grow and provide businesses with seamless , integrated opportunities to better meet customer expectations . Retailers , payment processors and financial institutions will all need to work together , embracing embedded finance to create new products which provide the best consumer experience possible .

Embedded Finance in action

Embedded Finance is not necessarily a new concept , but its adoption has accelerated over the last few years . There are a growing number of solutions now in the market with BNPL among them . Embedded lending – which we see through BNPL – allows consumers to take out an interest-free loan with the retailer at the point of purchase , without going through a bank . The pool of BNPL providers is continuing to grow in ANZ with local businesses , AfterPay and ZIP amongst the top players .

Another example of embedded finance already in use every day is through ridesharing apps – from Uber to newcomers such as DiDi and Ola . When a customer pays for a ride-share at the end of the ride , they pay directly through the app and there is no need to pull out a credit or debit card separately . In addition , with Uber , all those who ride in their cars are automatically covered by insurance for the duration of their journey – this is extended to the drivers – simplifying the process for the consumer .

HAVING GREATER VISIBILITY OF THEIR TRANSACTIONS ENABLES BUSINESSES TO RECOMMEND TAILORED PRODUCTS FOR THEIR CONSUMERS AND PERSONALISE THE EXPERIENCE .