What is embedded banking and how can consumers benefit from it?

Embedded banking has emerged as an innovative concept in the financial landscape which entails integrating banking services seamlessly into platforms and ecosystems. A go-to-market model that CIMB Bank PH has pioneered, embedded banking empowers non-banking entities to monetize their growing bases by providing payments, savings and lending services which stands to tremendously benefit our digital savvy Filipino consumers. 


Understanding embedded banking

Embedded banking refers to the integration of banking services within non-banking platforms, such as e-commerce websites, social media apps, or super apps. By embedding financial capabilities into these platforms, customers gain convenient access to a wide range of banking services without the need for multiple applications or interfaces. The bank is embedded on the touchpoints where the customers are. A good example of this is the GCredit feature in leading mobile wallet GCash, or the SPayLater facility in e-commerce platform Shopee—both of which CIMB underwrites.


Enhanced financial inclusion

One key benefit of embedded banking is the potential for enhanced financial inclusion. By collaborating with service providers, banks extend their services to a wider customer base, including underserved segments who may historically not have had access to banking products due to multiple know your customer (KYC) requirements from traditional banks. This approach democratizes access to financial products and services, enabling individuals who previously had limited banking options to benefit from a broader range of offerings.


Convenience and seamless experience

Embedded banking also offers customers unparalleled convenience and a seamless experience. By integrating financial services directly into everyday platforms, individuals can perform transactions, manage savings, access loans, and make payments within a single interface. This streamlined experience saves time, simplifies financial management, and enhances overall convenience for customers.


By integrating banking services seamlessly into everyday platforms, embedded banking represents a groundbreaking shift in the banking industry, empowering customers through personalized, convenient, and inclusive financial experiences. 


“As more and moreservices digitize, service providers will need to embed finance and banking capabilities in their ecosystems and platforms. We play the role in bringing the bank to the consumer where they perform their daily activities,” said Suraj Ramchandani, Chief Growth Officer of CIMB Bank Philippines. “CIMB has pioneered the ecosystem play. Through our collaboration with strategic partners, we provide a strengthened joint offering to our common growing base of users through the enhanced value proposition.” He highlighted GCash as an example of a partner where CIMB, through CIMB GSave, powers GCash’s savings product and provides Filipinos with a high savings rate and an accessible savings product. On the other hand, with GCredit, CIMB powers and manages the end-to-end product, portfolio, while GCash provides the platform through which the product is served. These result in Filipinos being empowered with a digital revolving credit line they can use across various merchants and payment needs.   


CIMB Bank PH will soon be unveiling more embedded banking partners and unique product features in the future. This will help grant easier access to the commonly underserved population such as the overseas Filipino, and the micro and small to medium entrepreneurs, enabling them to live their purpose just as deservedly as everybody else.