Harshavardhan Pusala, Founder & Managing Director, Techurate Systems Private Limited

Harshvardhan is the Founder & Managing Director at Techurate Systems Private Limited. He has over 15 years of experience in General Management, Software Development, Product Support, Delivery and Consulting. His domain experience is primarily in Oracle FLEXCUBE (Core Banking Software) and Channel Banking which includes 9 years at multiple client locations across Africa and Asia as a Project Manager and Technical Lead.


The seamless integration of financial services into a traditionally non-financial service is known as embedded banking, also known as embedded finance. Customers can, for example, use a cab to make cashless payments. Embedded Finance Infrastructure allows customer-facing digital platforms (known as “anchor platforms”) to “embed” financial services into their own systems. Businesses in the MSME, B2C and B2B categories can use embedded finance to boost client lifetime value, monetize their customer base, and vertically scale their product offering.

As more businesses and ecosystems integrate financial services into their offerings, banks should consider how they will fit into this paradigm. Consumers nowadays expect digital services to be available anywhere and at any time. In banking, the focus has shifted away from the branch and possibly even the banking app and toward the service itself, and technology is allowing those services to be brought closer to customers. With the widespread use of the internet, it is now possible to provide a completely integrated banking experience at scale—something that an increasing number of businesses are doing.

Embedded Banking is the conclusion of several phases of FinTech infrastructure development in India. New techniques of constructing FinTech apps have been enabled by the evolution of UPI and the introduction of Account Aggregators (NBFC-AA) and Open Credit Enablement Network (OCEN). Banks are now delivering banking directly to customers through embedded finance which vitally changes the playing field and separates the leaders from the followers.

Embedded banking is a new concept therefore let’s take a look at the examples of embedded finance that will transform the near future:

Embedded Payments

Embedded Payments is the process of integrating payment infrastructure into an app or platform to provide a seamless payment flow. The first financial service to be integrated into non-financial product experiences was payments. They’ve evolved into an important aspect of any E-Commerce app or SaaS platform’s value proposition, with end-users using this function on a regular basis.

Embedded Payments enable a wide range of applications, including video game in-game purchases, payroll automation software, e-wallet integration in E-Commerce apps, payment via educational institutions’ ERPs, subscription-based payments for SaaS, and more.

Embedded Credit

You can use embedded cards to make payments in addition to credit and debit cards. End-users can transfer funds electronically onto the card and make purchases up to the whole cash value on the card with embedded cards. Smart cards, virtual cards, and expenditure cards are all issued by different systems. These cards may be a handier option than cash. Because all information is encrypted, embedded card payments are safe. They are also more cost-effective than standard cards and allow for speedier processing.

Embedded Insurance

Insurance is bundled with the purchase of a product or service, which is known as embedded insurance. Maruti Suzuki, for example, sells car insurance both online and in-store. Embedded insurance firms provide transactional APIs and technologies that enable insurance solutions to interact with mobile apps, websites, and other ecosystems.

Platforms prefer to partner with external insurance companies instead of building the complex capability internally. However, insurance companies work with outdated tech stacks that are hard to integrate. Embedded Insurance infrastructure companies provide an easy way to connect with insurance companies through their tech stack.

Embedded Investments

Embedded Investment, in its most basic form, allows platforms to integrate stock market investing into their vertical products. The trend of Embedded Investing has been spearheaded by API-based brokerage businesses. They’ve developed APIs for every microservice, including account opening, funding, trading, portfolio management, and market data. This enables multiple platforms to provide in-context investment services to their customers.

Embedded Banking

Embedded banking is the type of banking in which banking-like services are offered by non-financial players. It replaces the checking or savings accounts provided by banking institutions. From a single platform, you can make investments, apply for loans, smart cards, or manage your transactions. This offers users a seamless banking experience. Embedded banking services make processes more efficient with fewer touchpoints and they are much more cost-effective as compared to normal banking.

Fintech, including embedded banking, is a fast-growing niche. It is poised to proliferate some companies to success by enabling them to offer more than one service. With embedded finance, for instance, online retailers can instantly turn themselves into lenders, thereby serving as a one-stop shop for all their customers’ needs.

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