Business Reporter: Embedded finance: wealth use-cases fulfilling a prophecy

A focus on embedded finance is emerging, changing the dynamics of wealth management

LONDON, UNITED KINGDOM, May 27, 2021 / — In an article published on Business Reporter, Christine Schmid, Head of Strategy at a leading SaaS and Embedded Finance provider to the wealth management industry additiv, explains why a focus on embedded wealth is emerging, disrupting the dynamics of wealth management.

Banks’ value chain is broken up by digital technology. To date this has largely involved payments and loans; wealth solutions so far have been ignored. But this is changing.

This disruption is driven by customer convenience. In her article , Christine cites Uber as an example of a business offering embedding payment services into their app, while H&M embed point-of-sale lending into theirs. There is now an opportunity to embed wealth management services into brands in a similar way. The potential market is enormous: in the US alone, embedded finance represents a $3.6 trillion opportunity.

Initially the main opportunities for embedded wealth lie in six use cases: retail and challenger banks, financial health platforms, asset managers, health insurance providers, pension and life insurance providers and consumer platforms that amalgamate many digital services.
There is a concern that wealth management companies become commoditised, like utilities. However, by enabling financial services companies to embed their services into a variety of brands, additiv’s infrastructure enables wealth managers and other financial service providers to extend their reach, build a point of difference, and reduce client acquisition costs.

To learn more about embedded finance, read the article.

About Business Reporter

Business Reporter is an award-winning supplement published in the Sunday and Daily Telegraph, City AM and online, delivering news and analysis on issues affecting businesses to a global audience. It also hosts conferences, debates, breakfast meetings and exclusive summits.

About additiv

Established in 1998, additiv partners with leading companies across the world to help them capitalize on the possibilities of digital wealth and investment management.

additiv’s DFS® omnichannel orchestration platform is a system of intelligence for wealth management. It supports wealth managers looking for best-in-class Software-as-a-Service (SaaS) to deliver better engagement at greater scale. It enables financial institutions to access new distribution channels through a Banking-as-a-Service (BaaS) model. And it allows banking and non-banking providers to embed wealth services into their proposition.

Headquartered in Switzerland, with regional offices in Singapore, UAE, Germany and Kenya, additiv is supported by a global ecosystem of partners.

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May 27, 2021, 10:50 GMT

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