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Embedded Finance: Bolstering Brand Experiences

Man on cellphone using embedded finance function

In the first blog in this series, Getting Started On Embedded Finance,  we defined embedded finance and took a high-level look at the goals and strategy a firm should take at the outset of its modern embedded finance journey.  In this blog, we will look at how a non-banking company can offer bank-like perks to its clients and workers.

When a non-financial firm offers embedded banking, they offer a branded checking account to hold funds and make payments for the betterment of the company and its clients or workers.

Consider the evolution of eBay. As a baseball card collector since childhood, I remember when eBay opened its URL back in 1995.  One could buy and sell baseball cards on the site but had to mail a check, or await the arrival of a check, via snail mail.  Once PayPal began its thing, however, one could collect the cash selling, or pay for baseball cards purchased, the same day the auction ended. No more waiting for checks to arrive and clear. Baseball card heaven for both buyer and seller. To this card collector, it made buying on eBay far superior to buying on Yahoo, which had previously been the go-to auction platform for baseball cards.

But embedded banking is not just for clients. Lyft, one of the largest ride-sharing companies in the US, offers an exclusive checking account and debit card for its employees (who are independent contractors).  Prior to the embedded finance function, drivers would get paid weeks after in one lump-sum payment that combined multiple rides into one payment.  Now, should they desire, Lyft employees can get paid after each ride they complete. In addition, they can then spend the balance from their Lyft debit card, to, say, fill up the gas tank for their next ride. To encourage these behaviors, Lyft can provide cash back and rewards to users, which can be monitored and changed, depending on popularity. Lyft drivers who want access to their earned funds faster and use a particular perk are less likely to leave Lyft for another ride-share company that does not offer this same convenience.


In this online article, we defined embedded banking, rather narrowly, as when a non-financial firm offers a branded checking account to hold funds and make payments. Firms such as eBay and Lyft, and many other online firms, have pursued this strategy and successfully expanded their core business. If you would like Perficient’s strategists to help you and your firm on your embedded banking journey, reach out to us here.

In our next blog in this series, we will discuss embedded payments and embedded lending.

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Carl Aridas

Carl is certified in the Scaled Agile Framework (SAFe), a Scrum Master, and a Six Sigma Green Belt project manager with more than 25 years of experience in financial services overseeing large-scale development global, multi-currency accounting, regulatory reporting, and financial reporting software platforms. He has hands-on experience completing, reviewing, and filing Federal Reserve, FFIEC, and IRS reports, including Call Reports, Y9C reports, 2900 reports, TIC reports, and arbitrage rebate reports.

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