Weekly Update 21

πŸ‘‹ Mickey Mouse could be outta Disney, Khaby Lame snags TikTok crown, and more!

Happy Friday, everyone! Mickey Mouse could soon be bidding adieu to Disney. Here's the scoop on that and our other top stories this week:

Weekly Trend Report: #EmbeddedFinance is the hot new trend in financial innovation

πŸ’Έ Embedded finance is when any type of company or online store incorporates services for which you would typically need to go to a bank.

🀳 Non-financial organizations are embedding payment options, insurance, banking, investments, and more into their digital customer experience – the new normal for modern businesses across healthcare, education, hospitality, and real estate.

⬆️ The demand will only intensify as Millennials and Gen Z become a larger part of the consumer market.

What fuelled the rise?

πŸ’΅ The fear of Covid contaminating paper bills or coins and banks limiting access and hours facilitated embedded finance.

πŸ€‘ Companies responded with investments in fintech to make checkout payments more convenient.

πŸ“ˆΒ Half of the US's non-financial companies are using embedded finance. The sector is now on track to grow 215% to over $230 billion by 2026.

How is it helpful?

🏦 Embedded finance removes the need to commute or fill out forms required at in-person bank interactions.

🌍 It empowers large swaths of previously unbanked people with digital credit and savings options, especially in remote African regions where banks often can't reach.

🏒 Companies and startups can find new revenue streams by embedding finance and increasing customer engagement and lifetime value in the next few years.


πŸ€” Only 27% believed embedded payments were more secure than traditional payments. 3-in-5 people also worried they would be charged the wrong amount.

πŸ‘› Embedded finance remains a mystery: many have used digital wallets, but 49% of consumers haven't heard the term "embedded payment."

πŸ“ Educating people is necessary so more people can opt-in as the demand for convenience at checkout increases.

Got any feedback? Drop it here. Have a great weekend!