With the emergence of embedded finance and digital payment solutions, a lot of businesses are experiencing fundamental shifts leading them to become, to some extent, a fintech. This change has impacted businesses across industries, resulting in profound growth opportunities, whilst shaping the way they operate.

The integration of fintech elements has allowed better customer experiences and seamless financial transactions. Businesses are now able to leverage solutions to address their customers' financial needs within the context of their products and services.

But what are the driving forces behind this transformation? How can businesses ensure they adopt the right embedded finance solutions? And in what ways can fintech act as an ally in business expansion, particularly for startups and those eyeing global scalability?

Let’s delve into these questions and gain insights from a seasoned expert, Jovi Overo, Managing Director of BaaS at Unlimit.

Embedded finance and digital payment solutions mean that every business has become a fintech to some extent. How do you think this evolution has impacted businesses across various sectors and facilitated their growth?

The shift towards embedded finance and digital payment solutions has enabled every business to integrate some elements of fintech into their operations.

This has facilitated growth by allowing companies to create more holistic experiences for their customers and making financial transactions more seamless. Businesses across various sectors can now streamline their operations and offer more value to their customers by addressing their financial needs in context. From the hospitality industry offering customers the ability to pay directly through an app, to retail brands like Amazon and Starbucks leveraging membership programs to incentivise customer loyalty, the line between financial services and other sectors is becoming increasingly blurred.

What factors do you think are driving the increase in embedded finance applications, and how can businesses ensure they adopt the right solution?

Customer demand for seamless experiences, technological advancements, and regulatory changes are the primary drivers behind the increase in embedded finance applications. Customers now expect to be able to complete financial transactions easily and quickly, and they appreciate the convenience of having these services integrated into the apps and platforms they already use. To adopt the right solution, businesses should start by thoroughly understanding their customers' needs and pain points, and then work with a fintech partner that can deliver a service that addresses these needs while adhering to all relevant regulations.

From your perspective, how can fintech act as an ally in business expansion, particularly for startups and businesses looking to scale globally?

Fintech can be a valuable ally in business expansion by providing startups and companies looking to scale globally with efficient, cost-effective financial solutions. The convenience, speed, and flexibility of fintech can help businesses navigate complex international financial landscapes, offer attractive customer experiences, and handle foreign exchange risks and regulatory compliance issues more efficiently. Embedded banking services, in particular, can enhance the overall customer experience and drive customer loyalty, which can be key for startups looking to build a strong customer base quickly.

As the Managing Director of BaaS at Unlimit, you have expertise in fintech product development. What are your thoughts on the latest trends in Banking-as-a-Service and how it’s working to transform the financial industry?

As the Managing Director of BaaS at Unlimit, I see the latest trends in Banking-as-a-Service (BaaS) as transformative for the financial industry. While it’s not a silver bullet solution and requires a significant amount of strategic planning and investment, BaaS has the potential to revolutionise traditional banking models. It allows businesses to provide payment services without having to become payment institutions themselves. But to reap the full benefits of BaaS, organisations need to maintain a high level of execution quality and have the patience to weather the time it takes to see substantial returns.

Alongside your role as a Managing Director, you’re on a personal mission to drive financial equality. How do you envision fintech playing a role in achieving this mission?

Fintech can play a crucial role in achieving financial equality by democratising access to financial services. It can break down the barriers that have historically prevented certain populations from accessing essential financial services. By embedding financial services into everyday business transactions, we can bring banking to the unbanked and underbanked, creating more opportunities for financial inclusion.

From your perspective, what are some of the key challenges and opportunities that arise when providing embedded finance services in different regions, and how do you think these challenges can be addressed to cater to the international market?

Providing embedded finance services in different regions does come with a unique set of challenges and opportunities. The differences in regulatory landscapes, varying cultural attitudes towards finance, and infrastructure disparities across regions can pose significant challenges.

But with a deep understanding of local markets, strong relationships with regulators, and flexible technology solutions that can cater to regional nuances, these challenges can be addressed effectively. Despite these hurdles, the potential for businesses to offer integrated financial services on a global scale presents a significant opportunity. By adopting a customer-centric approach, businesses can identify pain points and offer solutions that resonate with their customer base, regardless of location.