Changing Digital Landscape: Financial Institutions Embrace Embedded Finance to Thrive

In the rapidly evolving digital age, consumer experiences have undergone a dramatic transformation with the rise of the platform economy. The impact of this new paradigm has far-reaching consequences for financial institutions, compelling them to adapt to the changing landscape or face the risk of obsolescence. Today, consumers and companies are increasingly seeking the convenience of having banking services come to them, shifting away from traditional visits to physical bank branches.

- VINOD YADAV

At the core of the platform economy are digital platforms that function as expansive marketplaces, facilitating the exchange of goods and services between suppliers and customers.

The Rise of the Platform Economy These versatile platforms come in various forms, from transaction-based models that span the entire value chain, encompassing pricing discovery to fulfillment, to well-known B2C platforms like Amazon, Olx, Ola, Uber, AirBnB, and emerging B2B2C platforms such as Swigy, Denzo, and Chime. These platforms have transformed the way business is conducted, opening doors to new possibilities.

Insider Intelligence forecasts a staggering 50% growth in global e-commerce between 2021 and 2025, with a projected value of $4.7 trillion.

In India, the e-commerce sector, which amounted to $85.4 billion in 2021, is estimated to reach a remarkable $850 billion by 2030.