As an insurance executive, you know that innovation is key to staying ahead of the competition. One area of innovation that is rapidly changing the financial industry is embedded finance. In a recent article by Tyler Seydel, Chief FinTech Officer of Sunrise Banks, he discusses how embedded finance is changing the way consumers experience banking and driving financial inclusion for everyone.

Embedded finance is the integration of financial services into non-financial platforms, such as mobile apps or social media platforms. This allows for a seamless and convenient experience for consumers, as they can access financial services without leaving the platform they are already using.

Seydel notes that the most innovative fintech companies are breaking a lot of eggs to create exceptional experiences for customers. They are creating mobile platforms that release endorphins, generate excitement, and become truly experiential. This is the key differentiator for success as fintech capabilities and go-to-market approaches continue consolidating.

Embedded finance helps create an experience within an experience that delivers value for people. By making financial products more accessible and convenient, embedded finance can bring millions of people into a more secure, transparent, and perpetually present financial landscape.

So, what does the future hold for embedded finance, banking, and fintech? Seydel predicts that regulation of the most emergent parts of financial services will continue, and that future embedded finance innovations will come through open banking, generative AI, and furthering the omnichannel experience. The role of the bank – facilitating services and money movement – will grow and become more fluid, with growing payment modality support.

One area to watch is the growth of open banking and its intersection with embedded finance and social media platforms. As open banking continues gaining momentum and clarity, social media platforms stand to gain the most. They have a large active user base and as open banking provides the guardrails to capture consent to share financial information, they are in a unique position to de-channel traditional market players or disrupt the space in a big way.

As an insurance executive, it’s important to stay ahead of the curve and embrace innovation. Embedded finance is just one area of innovation that is changing the financial industry. At Riskwolf, we enable insurers to build and operate parametric insurance at scale using unique real-time data and dynamic risk modeling. If you’re interested in learning more about how we can help you innovate and stay ahead of the competition, get in touch with us today.

Read the full article by Tyler Seydel on FinTech Magazine.