ABeam Consulting Predicts the Future Trends of Embedded Finance - Siam Outlook


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Monday, April 8, 2024

ABeam Consulting Predicts the Future Trends of Embedded Finance

ABeam Consulting Predicts the Future
Trends of Embedded Finance

Money in business has shifted towards digital use to further increase convenience and ease for both the consumers and the businesses.

The financial service market landscape has been evolving every year with the direction of bundling financial products to enhance customer experience directly from non-financial company platforms. This movement is known as “Embedded Finance.”

Embedded Finance is not a new concept. It has been around for many decades, with its original purpose of upselling and cross-selling. For example, lending or insurance is offered at car dealers. However, the rise of mobile technology, including 4G/5G networks and smartphones, has significantly increased the realization of this concept to become more convenient and accessible. Today, we can experience many embedded finance services/products in various e-commerce platforms like Buy Now Pay Later in the shopping platform and insurance buying from the travel booking platform, just to name a few.

“The expansion of Embedded finance continues and is expected to go beyond the smartphone. The possibilities are endless. More products are to be offered by various non-financial services players in various industries. With this movement, the financial services business model landscape will be diversified. Non-financial services companies will realize increasing revenue portion from the bundling financial product in their platforms.” says Mr. Takeshi Nozawa, Principal and Head of Financial and Social Infrastructure of ABeam Consulting Thailand

From ABeam Consulting’s study, we foresee the trend in payment products to cover almost all purchasing value transactions and types (from small to big purchases, from daily buying to non-frequent buying). Lending product coverage is also extended to smaller purchasing transactions such as supermarket purchases, utility bills, etc. And no longer limited to smartphone devices, the new financial product will be enabled on various smart devices we interact with daily, such as cars, home appliances, office appliances, etc. Payment can be triggered from fingerprint sensors in the vehicle and Pay-As-You-Go or Pay-Per-Usage can be enabled from various smart devices with meter installation.

Figure 1: Example of future embedded finance products

“While Embedded finance product is very attractive for the non-financial services players not only from the revenue point but also customer experiences, the common challenges from the new entry’s view are 1) Understanding of local financial service regulations and PDPA, 2) Addressing integration complexities, and 3) Collaboration with the right partners and product differentiation. If the company can overcome such challenges, the opportunities to exploit the Embedded Finance industry are limitless,” Mr. Takeshi Nozawa added.


About ABeam Consulting (Thailand) Ltd.

ABeam Consulting (Thailand) Ltd. is a subsidiary of ABeam Consulting Ltd. – headquartered in Tokyo, with 7,5000 people serving clients throughout Asia, the Americas, and Europe. Providing consulting services in Thailand since 2005. ABeam Consulting (Thailand) has more than 450 professionals serving clients in Thailand with expertise in business and digital transformation services that create the future together with corporations and other organizations. As a creative partner leading the way reliably through change, we contribute to industrial and societal change. We offer end-to-end services to support businesses from concept and planning to system design in Embedded Finance.

Please contact us at THMARKETING@abeam.com or visit https://www.abeam.com/th/en for more details.

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