How AI and Embedded Finance Are Transforming Digital Lending: The Future of FinTech

This article is authored by Abhishek Anand, Founder of Skill Bud Technologies Pvt. Ltd., a company specializing in CGI Ads, Social Media, and other related services including Website Development, AR, Web 3.0, Metaverse, and Digital Marketing. Abhishek is also an Author, Speaker, and Mentor, helping businesses grow through technology.

- ABHISHEKANAND

The future of lending isn't just digital—it's deeply embedded and increasingly intelligent. As Artificial Intelligence (AI) continues to reshape industries, it is the convergence with embedded finance that's fueling a quiet revolution in how credit is delivered, accessed, and managed.

I recently had a fascinating conversation with Rajat Deshpande, Co-founder and CEO of FinBox, where I explored how AI-powered embedded finance is not just disrupting—but rebuilding—the foundations of digital lending. So, I thought of sharing industry insights about how AI and embedded finance are transforming digital lending.

EMBEDDED FINANCE: FROM BANKS TO WHERE THE CUSTOMER IS
"The traditional lending funnel has flipped," Rajat shared with me. "Banks once expected customers to seek them out, but credit today flows directly where customers already are."

He explained how embedded credit is addressing the long-standing barriers in financial inclusion. "The most overlooked factor," he said, "is how it solves the last mile problems. When credit becomes available at the exact moment of need—like a trucker needing fuel financing or a merchant restocking inventory—you eliminate both the awareness and access barriers simultaneously."

This shift is fundamental. Embedded finance brings credit to the checkout counter, to the gig work platform, or even directly inside a supplier's app. It's financial services that don't feel like "services" anymore—they're seamlessly woven into everyday experiences.

AI AS THE BRAIN BEHIND SEAMLESS LENDING
Behind this seamless delivery is a brain that's always learning. That brain is AI.