An introduction to Embedded Finance

If you want to start a financial company, instead of spending two years and millions of dollars in forming tons of partnerships, you can get all of that as a service and get going.
— Andreessen Horowitz

Embedded Finance refers to non-financial companies that have value propositions that are significantly enhanced or even transformed through the associated financial products and services embedded within.

Essentially, these are companies that are embracing the trend that non-fintech companies are venturing into being involved with financial services, and the first, second, and third-order implications of such a macro-trend.

We want to answer three main questions:

• How and why does this trend play out in the tech and financial ecosystem?
• What and who has been investing within the macro-trend of embedded finance?
• What are the different buckets of opportunities that exist in the market today?

We believe that startups of almost every vertical can and may move into financial services. It is not just about being better/tech-driven/more risk-taking. It is about finding opportunities to combine data, process and capital in ways that accomplish the same ‘jobs to be done’.