What is Embedded finance?
Product
Embedded finance means financial products offered inside platforms that are not banks: marketplaces, wallets, delivery apps. Credit appears at the moment of purchase or payout, without the person going to a financial institution.
Why it matters
These platforms arrive with two advantages that are hard to match: massive user communities and their own transactional data on each user's behavior. That is why they grow fast as credit originators.
Operating this way requires deciding on the spot and with proprietary data, which is exactly what an automated decision engine solves.
- Credit offered inside the customer journey.
- Proprietary transactional data feeding the decision.
- An origination engine is key to including new segments.
Common questions
What does a platform need to offer embedded credit?+
To decide in seconds inside its own flow, combining its transactional information with external sources, and to change the policy without depending on development for every adjustment.
Related terms
BNPL (Buy Now, Pay Later)
BNPL (Buy Now, Pay Later) is short-term instalment financing decided at the point of checkout. Its challenge is approving credit in milliseconds with minimal friction, which requires a fast decision engine, alternative data sources and policies that can be tuned per merchant.
Loan origination
Loan origination is the end-to-end process from a credit application being submitted to it being approved and disbursed: data capture, identity verification, data-source calls, scoring, policy execution and the final decision. Automating it cuts response times from days to seconds.
Subpolicy
A subpolicy is a decision policy invoked from another one, like a reusable block. It lets you split logic into pieces with a life of their own (identity validation, affordability calculation, fraud rules) and call them from several policies without duplicating them.
Back to the full glossary.
Want to see it in your operation?
Transform your credit assessment process with the decision engine.