The Changing Face of Banking: How Embedded Finance is Reshaping the Industry

The world of banking is undergoing a significant transformation, with embedded finance taking center stage. This approach, which integrates financial services into non-financial platforms, is reshaping how banks operate and compete. The recent report highlights the key trends and strategies that will shape the future of embedded finance over the next two years. Embedded finance, also known as Banking as a Service (BaaS), has seen its fair share of ups and downs. Initially, it was the talk of the town in the fintech world, with new entrants achieving unicorn status. However, the reality has been more nuanced. Buy Now Pay Later (BNPL) services, for instance, have made a dent in the credit card business of traditional banks. Yet, new providers in this space have struggled to turn a profit, and regulatory challenges have further complicated their business models. The landscape for BaaS providers has become more challenging due to increased regulatory scrutiny. Several high-profile failures and consent orders against BaaS providers have changed the risk and cost profiles of this business model. Larger banks, with their established compliance histories, are now better positioned to navigate these regulatory hurdles. In 2025, a survey of retail banking executives revealed that BNPL is a top priority for many. This product incarnation within embedded finance is considered the most mature, second only to digital deposit account opening. The report also outlines the embedded finance value chain and key strategies that providers can implement to succeed in this space. The report is a must-read for senior executives in the financial services sector. It provides insights into how embedded finance has influenced the industry and identifies key players and strategies. It also covers the embedded finance value chain and offers examples of success within the space. The report includes a comprehensive overview of the embedded finance landscape, featuring key players such as Amazon, Bank of America, Goldman Sachs, and many others. It delves into various aspects of the industry, including trends, industry analysis, and the value chain. The report is structured to provide a thorough understanding of the current state and future prospects of embedded finance.