Gartner has developed a framework for embedded finance that includes four strategy approaches: augment, productize, contextualize, and diversify.
- The augment approach involves adding financial components sourced externally or from other parts of the enterprise to existing or future financial services offerings.
- The productize approach involves distributing financial components as products to other enterprises.
- The contextualize approach involves addressing specific customer issues or problems that may not align with traditional banking products or services.
- The diversify approach involves distributing nonfinancial components to third parties.
The framework can be used by CIOs from all types of banks to develop insight and envision fundamental changes to the business model. Real-world examples are provided in Gartner’s Embedded Finance Use Cases for Your Digital Transformation.