Embedded finance is already here - what comes next?
Pavel Livshiz discusses the rise of fintech companies in Israel and the growing investor appetite in the fintech sector. It highlights that the impact of fintech is not limited to high-tech industries but is extending to various sectors such as e-commerce, restaurants, retail, and car dealerships. Fintech solutions are being recognized as efficient and innovative ways to facilitate transactions and improve financial processes.
The concept of embedded finance is introduced, which involves integrating financial solutions directly into a business's infrastructure. This enables businesses to offer financial products and services, such as payments, lending, and insurance, at the point of sale, bypassing traditional channels. Embedded finance streamlines processes for customers and creates additional revenue streams for businesses.
Examples of embedded finance include using smartphone payments for Starbucks or Uber, securing insurance at the point of buying a new car, and accessing business loans from existing community banks. Embedded finance provides opportunities for engagement, reduces churn, and avoids the need for customers to seek standalone fintech solutions.
The article concludes by highlighting the proactive investment approach of Hetz Ventures in embedded payments and lending and encourages founders in the embedded finance space to reach out for collaboration.
Read more of Pavel's article here
