Emerging Fintech Area – Embedded Financing | WSO2Con Barcelona 2025
AI Summary
Summary of Embedded Financing in Digital Services
Speaker
- D.H. Kumar, Head of Digital Services, Tech Mahindra
Key Concepts
- Embedded Financing: Providing financing options at the point of sale, simplifying the purchasing process for customers.
- It enables customers to have financing solutions integrated directly into their purchasing experiences on platforms like Amazon or automotive dealer websites.
Stakeholders Involved
- Lending Institutions (Banks)
- Dealers/Platforms (e.g., Amazon, automotive websites)
- Customers (Individuals and businesses)
- Technology Partners (e.g., WSO2)
Benefits of Embedded Financing
- Creating new revenue streams for banks and platforms.
- Enhancing customer experience by integrating financing options seamlessly into purchasing processes.
- Facilitating quicker and more efficient financial transactions through technology integration.
Scenarios Described
- Direct Financing at a Dealer Portal: Example of a customer buying a car with financing options checked through a bank.
- E-commerce Financing: Example of buying electronics from an online platform like Amazon with financing options.
Market Insights
- Projected growth of embedded financing to $600 billion by 2026, with a CAGR of over 20%.
- Increasing opportunities for banks and other businesses to generate alternative revenue streams through embedded financing initiatives.
Case Studies
- Success stories of integrating embedded financing in various industries including automotive and B2B sales for technology products.
Conclusion
- Importance of understanding legal and compliance aspects when implementing embedded financing.
- Continued focus on enhancing customer satisfaction through innovative financial solutions.
Call to Action
- For further inquiries, Tech Mahindra has a booth for discussions and deeper insights into their offerings.