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Fintech and realising the Embedded play

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New age technology enables Financial Solutions to be tightly integrated (embedded) across various other segments / industry & Solutions. This embedding of Fintech, enables a non financial player to enhance their proposition and convenience to customers by providing financial solutions that are critical for transactions, sales, revenues & even profitability.

To begin with, we all know that e-commerce has accelerated because of advent of digital payments (Including wallets). Another booster has been provided with embedding of digital lending along with payments (especially during checkout). These have made products / solutions more affordable and increased the market size. Besides, payments and lending there is good scope to integrate products like Insurance too.

Embedded play does not stop at Financial Products & Solutions. It can also be used to integrate value added services like Assurance, Subscription, Advisory etc. Even richer experiences like Loyalty programs, gamification & Rewards can be delivered.

Embedded play can also reduce risk, besides delivering richer experience to customers. For Embedded play to be effective, it requires: -

  1. That Respective products and solutions need to be weaved as a user journey / flow, depending on the interface involved. So while this is known, the question arises, Is there a framework / approach to Innovate, create engaging user journeys?. Well yes. We now have something called as Fintech Digital Life Cycle (FDLC) which helps in creating engaging user journeys. The User journey is classified into generic stages and sub stages, which can be agnostically applied to various use cases, Product, Process or Functionality.
  2. Another thing that we need is a digitally native architecture for embedded play and true digital experience for consumers, to be effective realised. This is where Fintech Logical Architecture (FLARE) helps. This simplified architecture also simplifies understanding for stakeholders and ends up driving better documentation, collaboration and eventual success of digital projects.
  3. The final piece needed for effective embedded play to be realised in a simplified marketplace called Fintech API Marketplace (FAM). FAM enables accelerated GTM, fostering partnership & growth. Also, the way FAM has been conceptualised, it will make the whole process very simple and non-technical thereby also positively impacting risks and costs too.

FDLC, FLARE & FAM are amongst 3 frameworks, which form part of 3F: Future Fintech Framework. The beauty of 3F: Future Fintech Framework is that, it is product, solution, tech & sector agnostic i.e. it can be applied across wide range of solutions where, digital & fintech is involved. Hence, this framework is best suited for Digital Fintech Solutions, including Embedded play. So, all organisations (Banks, Financial Services, Fintechs, Digital Startups & IT Firms) must imbibe 3F: Future Fintech Framework as part of their training mandates, as they have done with AGILE Framework (for project management training). This will positively impact Innovation, collaboration & Growth in their organisations and thus drive better user engagement, product usage & profitability.

 

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