EMBEDDED FINANCE: THE INTEGRATION OF FINANCIAL SERVICES INTO NON-FINANCIAL PLATFORMS
Authors: Goon Prasenjit , Laskar Dr. Habib R. , Barman Prof. Arup 
Published: June 2024

The revolutionary concept of Embedded Finance is based on the idea of integrating banking and other financial services into non-banking platforms to improve the user experience and meet individual needs. This piece examines the history, core features, and prospective outcomes of Embedded Finance in the banking industry. The abstract introduces the concept of "Embedded Finance," which is defined as the incorporation of financial services such as payments, loans, insurance, and wealth management into current digital platforms including e-commerce sites, social media platforms, and mobile applications. By incorporating these services, platforms can provide full-fledged monetary options within their ecosystems, improving the efficiency of transactions and the overall user experience. This study examines the factors including technological progress, shifting consumer preferences, and new regulations that have contributed to the growth of Embedded Finance. New technologies like APIs (Application Programming Interfaces) and cloud computing have made it possible for non-financial platforms and financial organisations to communicate and share data in real-time. Embedded Finance has been widely adopted because of consumers' changing tastes, which need seamless and streamlined interactions. In addition, new entrants can enter the financial services market because of regulatory shifts that encourage competition and innovation. The abstract also discusses the positive effects of Embedded Finance on several different parties. By expanding their service offerings, non-financial platforms can better engage their customers and bring in more money. By capitalising on these platforms' large user bases, banks and other financial services providers may attract new clients. To streamline their financial dealings, users can obtain financial services without leaving their chosen digital settings. The abstract also discusses the difficulties and factors to think about while dealing with embedded finance. Since integrating financial services necessitates processing sensitive user information, data privacy and security emerge as key factors. The additional challenges posed by regulatory compliance, especially in the areas of client identification and anti-money laundering, are not to be underestimated. The potential of Embedded Finance is discussed at the end of the abstract. According to the report, developments in technology and the growing need for individualised financial experiences are fuelling the industry's continued expansion and innovation. The abstract implies that traditional financial institutions and technology companies will need to work together to harness the full potential of Embedded Finance as non-financial platforms continue to incorporate financial services. This paper provides a comprehensive analysis of the forces behind Embedded Finance, as well as its advantages, disadvantages, and potential outcomes. It adds to our knowledge of this revolutionary shift and guides scholars, industry professionals, and regulators who are negotiating the new terrain of digital financial services.