Abstract

This IDC Perspective discusses how embedded finance is driving infrastructure transformation. There is much discussion about the term embedded finance, particularly in the context of other terms that have been used lately in the financial services industry. IDC believes that embedded finance is an evolutionary step in the process of what will ultimately be an open environment in which the roles of multiple, heterogenous industries will come together to provide value to customer, both consumers and businesses.

"The line between the financial institution and the customer base at large is blurring," says Jerry Silva, program vice president, IDC Financial Insights. "As much of a threat as financial institutions believe it may be, the trend toward embedded finance and multi-industry ecosystems is inevitable, so it's best to prepare for that eventuality."

Coverage