The financial landscape is experiencing a transformative shift towards embedded finance stated Bahaa Abdul Hussein. So, the top players in the technology domain called big tech companies will have to play a considerable role.
Embedded finance, as you know, is the integration of financial services into non-financial platforms. It has gained a great momentum. The key players in the tech domain are playing an important role in driving this growth. Here are some details on the role played by big tech companies in the embedded finance proliferation:
Seamless User Experience
Big Tech organizations are popular for their focus on innovation and user experience. When they integrate financial services into existing platforms, their goal is to create an integrated and seamless experience for users.
It might be facilitating payments on e-commerce platforms. Otherwise, it can be about offering personalized financial insights. Even, it can be about providing instant loans within apps. The objective is to make financial transactions more user-friendly and convenient.
Data-Driven Insights
Big Tech Companies are experts in leveraging data analytics. They are gaining deep insights into user behavior using data analytics. When they incorporate financial services, they can collect additional data on users.
For instance, they can learn about the financial behaviors, preferences and spending patterns of users. This wealth of data helps them provide more targeted and personalized financial products and services. They are in turn, able to create a win-win situation with users and for themselves.
Improved Accessibility
Big Tech Companies carry an expansive user base. With this user base, they can extend financial services to a broader group of audience. When they embed financial functionalities within their platforms, big tech companies can reach more audiences. It means that they can reach people, who are excluded from traditional banking services. This improved accessibility goes in line with the broader objective of financial inclusion.
Innovation in Payment Solutions
When it comes to making innovations in payment solutions, big tech companies play a key role. From contactless peer-to-peer transactions to digital wallets, they are reshaping how financial transactions are conducted. When they embed diverse payment options into their platforms, they can drive the adoption of new and more efficient methods of payment.
Expansion of Ecosystem
With embedded finance, big tech companies can expand their ecosystem. They can do this more than their traditional domains. For instance, let us take the case of a company that started as a search engine. Now, this company offers many financial services integrated into its platform seamlessly. This expansion of the ecosystem makes customer loyalty stronger. The reason is that users can get a wide range of their needs met by a single platform.
These are a few examples of how big tech companies play a key role in the proliferation of embedded finance. Thank you for your interest in Bahaa Abdul Hussein blogs. For more information, please visit www.bahaaabdulhussein.com.
