Platform-based banking models and the rise of embedded financial ecosystems

Wherever we turn, we see firms adding financial services on their platforms. Grocery chains are offering checking accounts with no overdraft fees or monthly fees, along with high-yield interest rates while facing fierce competition from high yield savings accounts provided digitally by neobanks. Almost every significant online retailer providing cashless transactions on its platform is also issuing cards for a seamless digital experience. These cards issued by non-bank firms are also moving into the world of credit with big-ticket items. Transport networks are also moving into offering installment payment plans. Embedded financial services can be offered by transportation and delivery platforms at scale to gig workers because they are obliged to keep funds in their accounts for either receiving allocated work or delivering an item.