// . //  INFocus //  A Practical Guide To Embedded Finance And Its Benefits

From trillion-dollar market opportunities to seamless integration of financial products into non-financial service channels — embedded finance in a nutshell.


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Financial services industry is undergoing a dramatic shift in value across the landscape with a new, wider ecosystem emerged.

A trillion-dollar market opportunity, embedded finance has been a hot field (that) enables the seamless integration of financial products into non-FS channels from e-commerce platforms to offline retailers.

For instance, one can easily subscribe to a loan or an insurance at a purchase of the new electric vehicle, and that does not involve a banker nor a branch.

Today, 35% of the value of the industry is accounted by technology companies.

China has been leading this way of embedded finance among many other Asian countries.

What is often overlooked, is that embedded finance is not a playfield only for tech companies.

In fact, it’s where incumbents should have their eyes on for future sources of growth.

Financial services firms, leveraging digital partnerships, can actually acquire new customers at a fraction of their typical costs, capturing new business opportunities.

However, to digitally transform and tap into new businesses successfully, incumbents need to think about not only partnerships, customer value propositions, but more importantly how to manage change and how to adapt to a customer-first organization.

My name is Rainie Pan. I am a principal at Oliver Wyman in Hong Kong.

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