Karan Maini, VP, BFSI, Persistent Systems, speaks at NAFCU’s State of the Industry virtual event for credit union executives and board members about the latest technology, trends, and credit union strategies for success against the competition.
About the Podcast
In this episode, NAFCU discusses the most recent developments in embedded finance. This technique incorporates complementary financial services offers, such as insurance or credit, into a non-financial transaction using a technology platform. While some may dismiss offers like BNPL as a modern version of layaway, the reality is that they are more about reducing friction in the purchasing process – while also creating new revenue streams from interest and/or fee collections. As a result, traditional banking channels are becoming increasingly disrupted, with the use of traditional products such as credit cards and unsecured loans declining. Karan Maini from Persistent Systems talks about how embedded finance is affecting credit unions and what the future may hold for credit unions in this podcast.
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You don’t need to build a lot of stuff on your own today because everything is out there as building blocks. You simply need to pick the right building blocks and you can make your own ecosystem.
Key Takeaways:
- [04:04] Embedded finance was doing about $20 billion in 2020. In 2022, they are sitting on $130 billion and are expecting it to be around $250 billion in 2026.
- [07:45] It is a booming market. It is not about who is going to come out on top. It is about how many parties are going to be able to seamlessly operate in a single customer transaction.
- [8:45] With so many options available, making a purchase decision has become a commodity.
- [10:00] Businesses are providing customers with purchasing experiences that are simple and affordable.
- [17:11] You don’t need to build a lot of stuff on your own today because everything is out there as building blocks. You simply need to pick the right building blocks and you can make your own ecosystem.
- [20:01] The number one mistake is seeing it as a threat. I believe it is an opportunity and it needs to be leveraged as such.
