Fintech 4.0: Business acceleration through embedded finance

India Business and Trade, the thought leadership platform of the Trade Promotion Council of India, hosted a webinar titled “Fintech 4.0: Business acceleration through embedded finance” on July 31st, 2023. Eminent industry entrepreneurs from Fintech and ONDC expert member came together and held a panel discussion on the undergrowing demand of embedded finance and the technological advancements it brings to India’s vast SME segment.

Photo Source: India Business and Trade

India Business & Trade, the thought leadership platform of the Trade Promotion Council of India, hosted a webinar on the topic Fintech 4.0: Business acceleration through embedded finance on July 31, 2023 at 11:00 am. The panelists engaged in enrich discussion on the evolution of the concept of embedded finance and the growth opportunities it provides to small-medium size businesses in India.

The panelists for the session were as follows:

• Vikul Goyal, Founder & CEO, Bimaplan
• Hrushikesh Mehta, SVP – Financial Services, ONDC
• Yashoraj Tyagi, COO & CTO, CASHe
• Mayuri Shrivastava, Wealth Head, Arihant Capital
• Ajay Chaurasia, VP Marketing, Product & Business, RupeeRedee

Industry experts believe that embedded finance has led a silent financial services revolution in India for many decades. The concept of embedded finance involves integration of financial services like lending, payment processing without the need to redirect to traditional financial institutions (banks).

As per the report published by KPMG, the Indian embedded finance market can reach almost $1 trillion by the end of 2023. Another report by Deloitte stated that the embedded finance in India might touch $1.2 trillion in annual revenue by the end of 2025.

However, there are challenges attached to it such as cybersecurity threats and possibility of data leaks. Amid discussion, fintech leaders also deliberated upon the lack of awareness amongst SME on the utilisation of embedded finance services to increase customer base, offer competitive price on various products and so on.

Some of the key takeaway from this discussion were as follows:

• Understanding the evolution and drivers of embedded finance in India
• Outlook of the sector in the coming years
• How embedded finance solutions facilitate businesses (B2B and B2C)
• How SME can utilize these solutions for customer retention,
• Role of AI/ML in enhancing the potential and utility of embedded finance
• Possible threats to customers/businesses under embedded financing.

The overall conclusion, based on the expert inputs of the panelist, remained that platforms such as ONDC and private embedded finance companies can provide plug and play solutions for MSMEs to be able to access those services and further pass on those services and products to their customers. The industry leaders added that India’s MSMEs need to embrace technology rather than deny it, as embedded finance will only help grow the business and have a better connect with the
customers.