Now more than ever, it is essential financial institutions blend services to fit the various needs of new and current customers, and one way to do this is with embedded financial services. Let’s break it down: embedded finance is “The integration of banking and other financial services into nonfinancial apps and services,” states Investopedia. This includes financial websites, social media platforms, and mobile apps. It’s a financial convenience for customers. As more people demand their banks and credit unions make it easier for them to access, use, and save their money, the companies that can embed financial services into their platforms can gain a powerful advantage.
By partnering with fintech companies or developing their own embedded finance solutions, banks and financial institutions can enhance their digital offerings and meet the evolving needs of their customers.
A study conducted by Marqeta found that 86% of respondents said they had made purchases through a retailer’s embedded mobile app, especially in the current tumultuous economic climate, consumers are seeking personalized solutions and bespoke services. This rising tide of fintech innovation is putting more and more pressure on financial services providers who increasingly face the risk of denying their customers what they want.
Wysh, an early leader in modern life insurance policies, highlights how focusing on embedding financial protection in everyday banking experiences can make financial institutions stand out from the pack. The company is currently partnering with UNest, a savings and investing company, to make their innovative offerings more available, and attainable, and as a result, helps empower families to protect their financial future.
“We’re thrilled to be working with UNest,” says Alex Matjanec, Founder of Wysh. “At Wysh, our goal has always been to make life insurance more accessible. This partnership aligns perfectly with our mission. Together, we can empower more families with financial protection.”
Through its embedded financial protection products such as Life Benefit, Wysh embeds micro-coverage into the financial ecosystems of its partners. Unlike conventional life insurance
policies that require separate underwriting and commitment, Life Benefit seamlessly integrates with the existing account structures of financial institutions. For UNest users, the alliance allows them access to Wysh’s life insurance offerings—now, families can secure their future all in one place.
“We are excited about our partnership with Wysh,” said Ksenia Yudina, CEO and Founder of UNest. “We believe that every family deserves the tools to build a secure financial future for their children. By both embedding life insurance as an included benefit and making it easier to receive protection through Wysh, we are providing a more comprehensive protection solution for our customers.”
Together, Wysh and UNest are providing holistic financial protection to more than 300,000 families.
Plaid, a financial services company, offers a technology platform that enables applications to connect financial institutions’ users’ bank accounts. Plaid Link is what users see and allows them to securely connect their financial accounts to its partners’ app in seconds, versus the standard 3-5 days of traditional methods. All the user has to do is enter the login credentials associated with their account.
“Plaid Link provides a single, streamlined solution that connects to more than 12,000 US financial institutions, plus many more in Canada, the UK, and Europe,” the website states, with more than 8,000 financial apps and services powered by Plaid. “The backbone of our funding flows is built on our integration with Plaid Link. Enabling customers to instantly connect their checking and savings accounts allows us to provide a nearly seamless experience when customers want to deposit funds to Betterment,” said Ashley Curran, Director of Product, Betterment.
View a demo here to get the full scope of Plaid Link.
Flinks, the financial data infrastructure powering innovation, offers financial services data tools that turn raw banking data into insights. The platform empowers financial institutes to connect consumers with the services they want and need with Flinks Enrichment, Connectivity, Outbound, and Pay, all designed with the user experience at the forefront. Flinks’ solutions include lending, digital banking, wealth, payments, and fintech.
“With Flinks, we’re able to onboard thousands of clients daily in a matter of minutes, making a complex process as simple and frictionless as possible,” said Laure Lampe, Senior Director of Operations.
Flinks makes it possible to “build the financial institution of the future.”
With embedded finance a rapidly moving target, financial institutions have a choice to evolve their offerings and meet consumers where they are. Rather than force consumers to meet them, traditional financial institutions must better utilize technology and innovation to provide accessible, convenient, and customized financial products—in an individual’s or family’s best interest.
Innovators such as Wysh, Plaid, and Flinks, all dedicated to improving financial health through embedded finance and insurance, will continue to lead the way.
To learn more about these innovative companies, visit this link.
