The financial services landscape is undergoing a profound transformation. At the heart of this change is embedded finance—the integration of banking, payments, lending, and insurance directly into non-financial platforms and business workflows. For banks and financial institutions, this is more than a technology trend; it’s a strategic imperative to reach new customer segments, especially small and medium-sized enterprises (SMEs), and to remain relevant in a rapidly digitizing world.
Embedded finance brings financial services to customers at the point of need, within the digital experiences they already use. Whether it’s a retailer offering instant credit at checkout, a ride-sharing platform enabling driver payouts, or a B2B marketplace providing invoice financing, embedded finance removes friction and redefines how businesses and their customers interact with money.
For SMEs, this means access to tailored financial products—such as working capital, payments, and insurance—within the platforms they use to run their businesses. For banks, it’s an opportunity to extend reach, deepen relationships, and unlock new revenue streams by meeting customers where they are.
Several forces are converging to accelerate the rise of embedded finance:
While fintechs and digital-native challengers have led the way, traditional banks are uniquely positioned to win in embedded finance. They bring regulatory expertise, risk management, and established trust. However, success requires a shift from product-centric thinking to ecosystem collaboration and customer-centric design.
Banks must:
To differentiate and scale in the embedded finance era, banks and financial institutions need to invest in three core capability areas:
Move beyond traditional product silos. Co-create blended offerings with non-financial partners—combining financial services with business tools, marketplaces, or industry-specific solutions. This approach unlocks new value for SMEs and creates stickier, more relevant propositions.
Effective partner management is critical. Banks must establish dedicated teams and processes to support ecosystem collaboration, from onboarding to ongoing support. Integrating Banking-as-a-Service (BaaS) capabilities into existing infrastructure enables seamless coordination between embedded finance and core banking functions.
Legacy core systems are a barrier to agility. Banks should transition to modular, API-driven architectures that can scale and adapt to new partners and use cases. Cloud-native platforms, real-time data integration, and robust security are essential to support a growing network of BaaS partners and deliver on the promise of embedded finance.
To seize the embedded finance opportunity, banks should follow a clear roadmap:
Publicis Sapient is at the forefront of enabling banks and financial institutions to capitalize on the embedded finance revolution. Our SPEED methodology—integrating Strategy, Product, Experience, Engineering, and Data & AI—helps clients:
We have partnered with leading banks and fintechs to deliver real-world impact: from modernizing core banking and data infrastructure, to deploying AI-powered solutions that streamline compliance, personalize experiences, and drive operational efficiency.
Embedded finance is reshaping the future of B2B digital banking. Banks that act now—by building the right capabilities, forging the right partnerships, and embracing a customer-centric, ecosystem mindset—will be best positioned to lead in this new era. Publicis Sapient stands ready to help you navigate this transformation and unlock the full potential of embedded finance for your business and your customers.
Ready to differentiate and scale your embedded finance offering? Let’s start the conversation.