"Embedded finance is the term for integrating banking and other financial services into non-financial apps and services. Companies are merging banking, lending, insurance, and investment services with their customer offerings through application programming interfaces (APIs) linked to financial partners" Source: Investopedia
1. Talk of the town: Embedded finance is big, critical for scaling digital ecosystems, and growing fast. The regional market for embedded finance is already valued at $10 billion. What's more it's expected to grow by 45% to 2030 (at rate that's more than 2x faster than the rest of the world).
2. Look further for inspiration! The easy wins of fintech's first wave across MENA are behind us. That's not to say there aren't big opportunities out there, just that the next generation of MENA scale players will forensically understand how finance and data solve real world problems. For inspiration look to Africa's booming cohort of digitally-native firms where finance is simply a feature, not the sole function.
3. Embedded finance ain't binary (but it does have a formula): In the early stages successful scaling players understand intuitively how to combine real-world physical relationships (to forge partnerships, build traction) with excellence in tech execution + robust, reliable data governance. In growth markets where data is patchy and has to be assembled 'in-house' the challenge is even greater - as are the rewards for the firms that 'get it'. Building the right team that understands this is essential.
Source: AI Engine - Wix
The Full report can be downloaded via the link below. Our team is available via info@mingzulu.com to discuss in more detail.
