Blog by Cigniti Technologies

11 Benefits of Embedded Finance and How it Transforms the Fintech

11 Benefits of Embedded Finance and How it Transforms the Fintech
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Have you ever thought about how you can make payments for a movie without standing in line or pay utility bills without stepping out of your home via Paytm or Google Pay? Yes, you can name many applications that make instant payments happen. But how is this happening? How are conventional banks getting replaced with digital transactions? The answer would be embedded financial services.

Embedded Finance is the integration of financial services into non-financial services or products. Embedded Finance platforms allow organizations to bypass technical infrastructure and effort by providing “Plug and Play” functionality using APIs. These platforms form partnerships with banks and insurers, enabling the provision of financial services. A simple example of this would be a pop-up for travel insurance while booking flight or train tickets.

The Process of Embedded Finance
It is essential to know the stakeholders involved before understanding the back-end process of embedded finance. There are three major stakeholders:

Types of Embedded Finance

Why is embedded insurance taking off? It simply puts customers in control.

Consider this scenario: A customer wants to buy a product online, compares prices, and then clicks on “Buy this Product”, and they’re offered coverage for the product. It’s an excellent option to secure with just a few clicks from their mobile device, so they opt for the coverage. There’s no need to search elsewhere and make a separate purchase.

There are three key players in the embedded finance ecosystem who make it possible to provide financial solutions to users: Financial Institutions, Digital Platforms, and Embedded Finance Infrastructure Companies.

11 Benefits of Embedded Finance
Embedded finance has a lot of benefits for various entities and stakeholders. As a result, more people have driven toward it in recent years.

Benefits for Businesses

Benefits for Financial Institutions

Benefits for Users

Embedded finance is adaptable and appealing to all industries. It also has the potential to revolutionize payments and widen the horizons of innovation. With time, we can expect more novelty and one-of-a-kind offerings from various businesses and users.

Cigniti Technologies has been providing embedded payment services to many banking and insurance clients. Our testing services touch upon all the segments, like payments, insurance, lending, and investments, which we can further customize to meet client needs in providing robust and secure solutions. Cigniti, as a leading AI & IP-led Digital Assurance and Digital Engineering Services Company, can help clients with this activity with our best-qualified experts, who are well trained and certified in handling all the types of embedded finance.

Need help? Talk to our Financial domain and BFSI testing experts to learn more about the benefits of Embedded Finance and how it transforms the Fintech industry.


  • Harikrishna Vulli, working as a lead at Cigniti Technologies within the BFSI COE and delivery practice, has seven years of overall experience in testing cards and payments. He holds extensive experience in end-to-end testing for both web and mobile applications, starting with planning and control, moving on to analysis and design, test case implementation and execution, evaluating exit criteria, reporting, and finally, test activity closure. He is well versed in both Agile and Waterfall methodologies and is an ISTQB Certified Tester.

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