Embedded finance has been a very hot topic among fintech geeks for the last few years. This week's Bits about Money goes into why I think it will be transformative for SMB banking.
bam.kalzumeus.com/archive/changi…
bam.kalzumeus.com/archive/changi…
I often think technologists have a poor model of banking, assuming that banks are stupid, innumerate, and incapable of employing smart technologists. All of these are very obviously false.
The bigger reason why SMB banking is mediocre is more nuanced.
The bigger reason why SMB banking is mediocre is more nuanced.
It mostly comes down to "SMBs are essentially co-extensive with the sum of all human economic activity. There is no model for the sum of all human economic activity which is a good model except for the sum of all human economic activity. Now, try to write a design doc for them."
The biggest opportunity with embedded finance is making fundamental primitives about money storage, movement, spending, etc available to All The Product Teams and then seeing what comes out.
It will likely be better services, at lower cost, which will be adopted quickly.
It will likely be better services, at lower cost, which will be adopted quickly.
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