Hi friends

Welcome to a light edition of Embedded Finance Review. As usual, summer is a bit slower (at least in Europe), thus, this edition is a bit shorter and in a slightly different format than usual. I am hoping that there will be enough news in the coming two weeks so that I can return to the usual format.

That being said, I want to try something new for this edition: an Embedded Finance job board.

I started blogging about Embedded Finance last year with the intention of helping non-financial brands understand and follow the developments in Embedded Finance. This evolved into this newsletter, and I kept thinking, besides news and educational content, what other elements are helpful for the embedded finance community?

I feel that sharing job opportunities from the ecosystem could be a great fit, but I want to ask for your feedback as well: Do you think a job board is helpful? Or are there other things I should be adding to this newsletter? Hit reply or use the survey at the end of this newsletter.

Also, don’t forget that we are hosting our second Embedded Finance Review event. It will be on October 12th in Berlin, and while I am happy with the total number of signups so far, we still have some more space, so please sign up if you are in Berlin on that day.

Thank you and the other 549 subscribers for supporting my work. Do you want to put a smile on my face? Recommend EF Review to a friend or coworker who is interested in Embedded Finance.

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Are you looking for a new role in EF?

Usually, you would read here a story about a non-financial brand that is building financial products. However, I want to give this popular spot in the newsletter to the newly created Embedded Finance Job Board.

I am planning that every newsletter edition will include the most interesting job postings from the world of Embedded Finance. This edition starts with two roles, but I think 3-5 is a good number for future editions.

This is a test balloon, and I am asking you for two things:

1. Feedback via the survey at the end of this newsletter, and
2. Share your job vacancies.

I am aware that, as an English newsletter without a strong geographical focus, a job board might be a tough challenge. But I am not aiming to share every relevant job; I will just pick the most interesting ones and share them with you.

At this point, I am not going to put any hard rules on the job postings, but I assume that the most relevant roles will be in the areas of commercial, go-to-market, strategy, product, and adjacent areas. Since I am based in Europe and most of my readers are as well, I will always make sure to include jobs in Europe but will definitely not exclude jobs in other continents.

The first two jobs I have picked are:

• VP Business Development at Bezahl.de: Bezahl.de is a digital All-In-One solution for used car sellers. The role includes responsibility for their Embedded Finance products (the job posting is in German due to language requirements).
• Senior Fintech Business Development Manager at Visa: Team Visa is looking for somebody based in Amsterdam to look at and grow their Fintech portfolio.

Additionally, I started to maintain a list of talents that are looking for a new role in Embedded Finance. Please contact me if you want to see the profiles. I am not sharing the list publicly, as I will be checking with the individuals to see if they want to be mentioned. If there is enough interest, I will make this process more efficient.

If you want to submit a job vacancy or your profile, you can do that here:

Submit a job vacancy

Submit your profile

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Non-Financial Brand News

🇺🇸 Three US companies announce their Embedded Finance products in the areas of employee benefits, healthcare, and loyalty. All of them partner with infrastructure provider Marqeta.

And three more news items that are not Embedded Finance but that I considered still relevant:

🇷🇴 French telco provider Orange is selling its Romanian banking unit. This sale is part of a strategic decision to leave financial services.

🇺🇸 Telco provider Amdoc is growing its product portfolio and wants to focus more on banks and financial institutions. The company aims to transfer its learning from telco to the area of Financial Services.

🇺🇸 A new vertical banking solution was launched in the US, targeting members of the military. (Check out my piece from last year about Embedded vs. Vertical Banking if you want to understand this better.)

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Status quo of Embedded Finance

In the past few weeks, I have spoken to a few people who are contemplating finding their first job in Embedded Finance. It’s a great position to be in, as you can pick from many different opportunities. But it can also be pretty confusing. There are many things to take into consideration when making such a step.

I shared the following bullet points with one person as a way to guide them through the five main financial products of Embedded Finance and he used it as a starting point to go deeper. I thought I would share them with you as well and wanted to ask you, where would you start if you were looking for your very first role in Embedded Finance?

Payment

• When companies make payments an integral part of the user journey instead of handing them over to third party providers
• These companies can monetize payments and often turn them into their own business units
• Companies like Shopify started with payments before adding other fintech features
• In Germany, Otto and Zalando are other great examples of companies that have own subsidiaries fully focused on payments
• The final step is making payments an experience. Think about Uber’s invisible payment, Amazon Go stores or in-car payment solutions

Banking

• Companies can offer their customers branded bank accounts and/or cards
• Banking is a very sticky product and if brands can onboard users to their own banking products, they tend to stay longer
• Brands need to aim for 1+1=3. The result of adding banking to their existing product should be greater than the sum of its parts (also important since banking is hard to monetise but it gets much easier this way)
• There are already hundreds of brands out there offering such products, which is good for users but harder for brands. Embedded Banking for the sake of it won’t fly.
• Infra providers offer very different models: bank vs. e-money license; very international vs. localised; card or account only vs. all in one; debit vs. credit card and so much more.
• It's hard to navigate but if you understand the market, you have a competitive advantage

Lending

• Applying for a lending product at a traditional bank or even a stand-alone Fintech provider can often be clunky and time consuming
• But often brands know already that you might want a loan, because you are
  • Buying an (expensive) product from them
  • Using their software to manage your business (invoicing; payment; etc)
• Most of the embedded lending products are focused on businesses: Usually, merchant cash advances or short-term financing
• Consumer solutions are often BNPL in an e-commerce transaction (even though technically not always a loan) or niche lending solutions like financing solar-panels

Insurance

• Embedded Insurance is likely one of the most spread ‘embedded’ areas, and you have definitely seen cases already
• Most popular use cases are
  • during an e-commerce / travel booking / rental transaction (e.g. buy a laptop and get the right insurance with it)
  • for landlords / asset owners, when they offer their property / asset to rent on a marketplace
• But think about all the other places where you could/should be offered dental / health / pet / … insurance

Investment

• Likely the one where we have seen the least development yet
• Thanks to rise of new infrastructure provider, it has been become much easier to build and offer digital investment products
• Most of the customers of these infrastructure providers tend to be financial companies and there are not many non-financial brands
• Personally, I believe it’s normal that those financial companies will be the first customers (same for BaaS) and I expect non-financial companies to follow, but it is likely more niche solutions around retirement planning, cash-back solutions, etc.
• It is often challenging to convince a user to open a new bank account, but convincing somebody to open a new investment account is likely much harder

Do you agree? What would you consider important points for an industry outsider to understand about the different Embedded Finance areas?

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Infrastructure News

🇬🇧 LHV Bank completes business transfer and strengthens it’s BaaS offering

🇺🇸 ChargeAfter expands embedded lender network with Wells Fargo

🇺🇸 Treasury Prime adds Liberty Bank to network

🇺🇸 PayJunction launches No-code Payments Integration platform

🇦🇪 Visa partners with NymCard to launch issuance platform in the UAE

🇵🇭 Chinabank introduces Embedded Banking

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Insightful reads

🦮 The Next Chapter of Embedded Finance: A Guide for How and Where to Play - to Win

👫 Partners are now more inclined to do their due diligence before engaging with a BaaS partner

🏄‍♂️ The next frontier of embedded lending: Creating prosperity in emerging markets

📉 Why Do Neobanks Fail? Challenges and Lessons.

🧾 A guide to embedded payments

🎣 And for the last link in this newsletter, let me show you how clickbait looks in our industry: Marqeta brings generative AI to embedded finance

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