Embedded finance: Innovating for good

Below, Tyler Seydel, Chief FinTech Officer (CFO) of Sunrise Banks, details how innovations in embedded finance will change how consumers will experience banking and drive financial inclusion:

They say that to bake a cake, you need to break a few eggs. The most innovative fintech companies are breaking a lot of eggs. They look at the same value propositions and ask how they can do it differently. They iterate. And they create an exceptional experience for customers. No one wants to wake up on a Saturday morning and go to the bank. It’s a chore.

But what if banking felt as exciting as going to a carnival or amusement park? Fintechs today create mobile platforms that release those endorphins, generate excitement, and truly become experiential. Building this experience is the key differentiator for success as fintech
capabilities and go-to-market approaches continue consolidating.

Fintech partnerships allow Sunrise Banks to support a differentiating customer experience. Embedded finance is part of an omnichannel experience – and the big wins happen at the inflection point where the bank delivers trust, equity, and money movement paired with the reach and capability of a fintech.

Embedded Finance helps create an experience within an experience that delivers value for people. Sometimes, this value is based on a need they didn’t even know they had. The synergy between Sunrise Banks and our fintech partners opens new avenues to serve customers. The opportunity to lift more people up is a big win.

Sunrise Banks focuses on being a social engine for good. This simple, systemic focus is the basic premise for innovating and growing with our partners and approaching market opportunities. Embedded finance helps reinforce Sunrise Banks' commitment to value-based banking, paving the way for long-term growth while staying true to the core principle of social responsibility.

By making financial products more accessible and convenient, embedded finance can bring millions of people into a more secure, transparent, and perpetually present financial landscape. 

What does the future hold for embedded finance, banking and fintech?

 - Regulation of the most emergent parts of financial services will continue as it does in any growing and innovative industry. Post spring of 2023, regulators will more actively monitor the health of banks. It’s all about product strategy, informed design, risk mitigation and compliance that drives success.

 - Future embedded finance innovations will come through open banking, generative AI and furthering the omnichannel experience. The role of the bank – facilitating services and money movement – will grow and become more fluid, with growing payment modality support. 

 - Something to watch is the growth of open banking and that intersection with embedded finance and social media platforms. As open banking continues gaining momentum and clarity social media platforms stand to gain the most. They have a large active user base and as open banking provides the guardrails to capture consent to share financial information they are in a unique position to de-channel traditional market players or disrupt the space in a big way.

 - The larger a company’s active user base, the larger the customer acquisition channel, and the larger the opportunity for embedded finance and open banking to intersect and provide value and an experience. 

 - Iteration is constant. When you stop iterating, you stop innovating. 

I get to spend my days building innovative solutions that create value for people. If you’re a fintech that wants to do the same and break some eggs – and bake a cake, give me a call.

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You may also be interested in our sister site, InsurTech Digital, which you can also follow on LinkedIn and Twitter.​​​​​​​

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