Traditional banking VS Embedded finance
The emergence of non-banking platforms as customer-centric hubs for user-friendly and customizable financial applications is reshaping the banking business model. These platforms, part of the embedded finance landscape, offer seamless access to financial services, creating a contrast with traditional banking.
Embedded finance involves various roles like platforms, enablers, and license holders, diverging from the integrated process of traditional banking. Some banks are partnering with these platforms, but they need to carefully assess the pricing pressure and advantages of such collaborations.
Banks face the challenge of potentially being relegated to capital-intensive and highly regulated backend activities, with limited user interaction. To counter this, some banks are expanding their platforms to collaborate with non-banks or extending their offerings, like embedded insurance and concierge services, to adjacent sectors such as travel and mobility.
LOQUAT Inc. was founded with a passion to connect local financial institutions with small businesses who need a fast, secure and convenient digital banking experience.
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