This past year, embedded finance and embedded insurance have started to pick up as effective tools to deliver banking needs more instantly to a wider number of customers – and this time not just in banking apps.

To delve deeper into embedded finance and the transformative shift in digital banking, Singapore Business Review spoke with Andrew Tan, Silverlake Axis’ Managing Director and Peter Miller, CEO of Fermion.

”Embedded finance revolves around integrating access to financial services and solutions, whilst banking-as-a-service (BaaS) centres on providing a technological foundation that banks reply on to offer those financial services and solutions,” says Miller, in describing the difference between embedded finance and BaaS models.

The main goal of embedded finance is to provide for the customer’s needs – at the exact moment they may need it without having to redirect or jump to another platform or site.
Miller also spoke on the common challenges faced by those adopting insurance ecosystems and how Fermion addresses them.

Tan notes on a trending shift to cloud-based platforms, stating “Some 65% of Asia Pacific banks surveyed, either plan to move or have moved their workloads to private and/or public cloud environments.”

Highlighting how disruptive technology can benefit the financial services industry, Tan adds that considering the needs of today’s consumers, banking would need to be similar to customer-centric digital apps such as Grab and Netflix.

“Disruptive technology inadvertently transforms the banking platform into a larger consultative approach. This automatically shifts the relationship from functional and transactional to experiential and personal. From a consumer point of view, the expectation of banks in a digital world would be similar to Amazon, Alibaba or Paywise,” Tan said.

Both Fermion and Silverlake Axis will be exhibiting at the Singapore Fintech Festival, Singapore EXPO Hall 4 from 2 to 4 November 2022.

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