FinTech: Embedded Finance & Open Banking 2.0

Executive Summary

Fintech, or Financial Technology, refers to the use of technology to support and enable financial services and products for consumers and businesses. Its primary objective is to make banking and financial services more accessible, efficient, and customer-centric compared to traditional methods.

Digital and online technologies are leveraged to deliver, enhance, and automate financial services across payments, lending, investments, and banking operations. One of the key trends within Fintech is Embedded Finance, which focuses on integrating financial products and services directly into non-financial platforms. This integration is primarily enabled through APIs, which serve as the foundational technology layer.

Open Banking 2.0, another major component of the Fintech ecosystem, also relies heavily on APIs to securely provide access to banking and financial data. This enables greater interoperability, innovation, and cross-sector integration beyond traditional banking boundaries.

The overarching goal of Fintech is to enable a Banking-as-a-Service (BaaS) model, where core banking capabilities are exposed through APIs and consumed by third-party companies to create new, scalable financial solutions.