Embedded banking has emerged as a new concept in the financial landscape that involves integrating banking services seamlessly into platforms and ecosystems. A go-to-market model pioneered by CIMB Bank PH, embedded banking empowers non-banking entities to monetize their growing base by providing payment, savings and lending services which will greatly benefit our digital savvy Filipino consumers.
Understanding embedded banking
Embedded banking refers to the integration of banking services within non-banking platforms, such as e-commerce websites, social media apps, or super apps. By embedding financial capabilities in these platforms, customers gain easy access to a wide range of banking services without the need for multiple applications or interfaces. The bank is embedded in touchpoints where customers are. A good example of this is the GCredit feature on leading mobile wallet GCash, or the SPayLater facility on e-commerce platform Shopee—both of which are underwritten by CIMB.
Enhanced financial inclusion
A key benefit of embedded banking is the potential for increased financial inclusion. By partnering with service providers, banks are expanding their services to a wider customer base, including underserved segments that may have historically had no access to banking products due to the many known your customer (KYC) requirements from traditional banks. This approach democratizes access to financial products and services, enabling individuals who previously had limited banking options to benefit from a wider range of offers.
Easy and seamless experience
Embedded banking also offers customers unparalleled convenience and a seamless experience. By integrating financial services directly into everyday platforms, individuals can make transactions, manage savings, access loans, and make payments within one interface. This streamlined experience saves time, simplifies financial management, and improves customers’ overall convenience.
By integrating banking services seamlessly into everyday platforms, embedded banking represents a groundbreaking shift in the banking industry, empowering customers through personal, convenient, and inclusive financial experiences.
“As more and more services digitize, service providers must embed financial and banking capabilities into their ecosystems and platforms. We play a role in bringing banking to the consumer where they do their daily activities,” said Suraj Ramchandani, Chief Growth Officer of CIMB Bank Philippines. “CIMB is leading the ecosystem game. Through our collaboration with strategic partners, we provide a strengthened integrated offering to our ever-growing base of users through an enhanced value proposition. He highlighted GCash as an example of a partner where CIMB, through CIMB GSave, operates the GCash savings product and provides Filipinos with a high savings rate and an accessible savings product. On the other hand, with GCredit, CIMB powers and manages the end-to-end product portfolio, while GCash provides the platform where the product is served. This results in Filipinos being empowered with a digital revolving credit line that they can use for various merchants and payment needs.
CIMB Bank PH will soon be unveiling more embedded banking partners and unique product features in the future. This will help provide easier access to the generally underserved population such as overseas Filipinos, and the micro and small to medium entrepreneurs, enabling them to live their purpose as others should.