The integration of financial services by non-financial companies is not a new phenomenon, but its scale and depth are reaching unprecedented levels.
The digital revolution has reshaped various industries, and one of the most remarkable transformations is occurring in the financial sector, driven by startups known as fintechs.
To understand this phenomenon, it is essential to comprehend what a startup is: an emerging company, usually technology-based, designed to scale quickly and solve problems in innovative ways. Fintechs, therefore, are startups focused on financial innovation, offering services and solutions that challenge traditional models.
Financial Services: A Strategic Advantage for Any Business
Although financial services may not be at the core of many businesses, they are often closely linked to their operations, significantly impacting final value and profit margins. From cash flow management to offering consumer credit, financial services are crucial elements that affect both operations and customer experience.
The Evolution of Embedded Finance
A growing trend stands out in this landscape: companies across various sectors are increasingly incorporating financial solutions into their technological infrastructures.
This shift is not limited to large corporations; small and medium-sized businesses are also integrating financial services to optimize operations, enhance customer offerings, and increase profitability.
- With Open Banking and the development of financial APIs, it has become easier for any company to integrate payments, financial management, and credit solutions directly into their apps and digital platforms.
- E-commerce platforms are increasingly offering credit and financing solutions at checkout, creating a seamless shopping experience while boosting conversion rates.
- Delivery and subscription services are implementing digital wallets and loyalty programs to encourage spending and enhance customer retention.
Challenges and Opportunities in Financial Integration
This transformation presents both challenges and opportunities.
Challenges:
🔹 Non-financial companies must navigate a complex regulatory environment.
🔹 Ensuring data security and customer privacy is critical.
Opportunities:
✅ Financial service integration allows companies to create new revenue streams.
✅ Enhances the customer experience, leading to higher engagement and retention.
✅ Helps democratize access to financial services for a broader audience.
Is Every Business Becoming a Fintech?
As the industry continues to evolve, financial solutions are becoming increasingly integrated into everyday business operations—regardless of sector.
The question “Is every business becoming a fintech?” reflects a new reality, where the lines between financial and non-financial industries are increasingly blurred.
Although not every company will become a fintech, the adoption of financial technology solutions is becoming commonplace, shaping the future of business and consumer behavior.
📌 Article originally published in Época Negócios.