Unlocking New Value Chains: How embedded finance as-a-service deepens financial inclusion in India's new-age economy

economictimes.indiatimes.com:

Financial inclusion is a critical driver of economic development, and embedded finance as-a-service has emerged as a powerful tool to deepen financial inclusion in India's new age economy with over USD 5bn in market size. The growing and prominent role of fintech in leveraging embedded finance to unlock new value chains, empower underserved populations, and drive economic growth is undisputed. However, despite significant progress, India still faces challenges in achieving comprehensive financial inclusion.

Millions of individuals, particularly those in rural and remote areas, lack access to formal financial services. Embedded finance as-a-service can bridge this gap by integrating financial services seamlessly into non-financial platforms.Unlocking New Value Chains:a. Expanding Access: Embedded finance as-a-service extends financial services to previously underserved populations by leveraging the existing user base of non-financial platforms.

By integrating financial services within these platforms, individuals gain convenient access to banking, payments, loans, insurance, and investments. This democratizes access to financial services, creating new value chains and driving economic growth. Bajaj Finance was the pioneer in this segment a decade ago, when it empowered customers of consumer durables to access credit at the point of purchase, which was unparalleled then.b. Customized Solutions: The integration of financial services into non-financial platforms allows for the development of personalized solutions.