Embedded finance, the author says, is reshaping how people interact with money.

The way that people handle financial affairs is changing. Arguably, even traditional banking models are on the way out or at least must adapt to stay relevant. To discuss how a rising generation of consumers is putting pressure for change, is Arthur Azizov (pictured), the founder and investor of B2 Ventures, a private fintech alliance. Azizov is based in Dubai. 

The editors are pleased to share these insights; please comment if you wish to do so and remember that views of outside contributors aren’t necessarily endorsed by the editors. Email tom.burroughes@wealthbriefing.com and amanda.cheesley@clearviewpublishing.com

The profile of today’s financial services consumer is changing fast and getting younger. With that shift comes a new set of expectations that banks and financial institutions can no longer afford to ignore. Millennials and Gen Z aren’t just digitally savvy; they’re native users of digital ecosystems. As their financial power grows, one thing becomes clear: the investment decisions of the future won’t be made in advisors’ offices or even in banking apps, they’ll happen inside the platforms these generations already live in.

According to recent research, 54 per cent of Millennials and Gen Z are likely to switch providers in favour of embedded lending products. And that’s not just a matter of convenience; it’s a sign of a deeper change as these generations want their financial tools built into the digital platforms they already use every day.

Embedded finance is reshaping how people interact with money – not through standalone apps or bank branches, but seamlessly integrated into the apps where they shop, work, play, and invest. For the financial services industry, it’s a wake-up call. 

How the shift started and why it’s not slowing down
If we rewind to the pre-digital era, interacting with financial services was anything but seamless. In-person visits, waiting rooms, paperwork – it was inefficient by design. The true game-changer came in the 2000s, with the iPhone and the internet reshaping user expectations across everything. Suddenly, people could manage most of their lives from their phones, and finance had to catch up fast.

The rise of Open API architecture was another turning point, not just for banking, but also for wealth management. Enabling seamless integration between financial institutions and third-party platforms literally laid the foundation for what we now call embedded wealth. Today, users can buy stocks, ETFs, or crypto directly through everyday payment apps like Revolut or Cash App. Due to this, investing is now brought into the flow of daily life.

For the user, the result was frictionless. Investing became as easy as sending a text or making a payment. But for institutions not built for this level of agility, it became a slow but inevitable erosion of relevance.

What new consumers really want?
This younger generation doesn’t just expect digital – they assume it. The entire experience, from onboarding to account management to transaction execution, needs to be mobile-first and instant. But there’s more: what they really want is consolidation.

Superapps – where you can insure your car, send money, open a trading account and split a dinner bill – aren’t a luxury, they’re an expectation. And the real magic happens when embedded savings and investments operate in tandem within these ecosystems. For example, on some platforms, users can make routine purchases, round up their expenses, and automatically invest a spare change into diversified portfolios. A growing number of platforms now offer embedded wealth features that turn daily financial activity into a long-term accumulation tool.

Transparency is another non-negotiable. New financial institutions offer clean interfaces, real-time updates and automated categorisation. You always know what’s going on with your money. Go back to traditional platforms, and it feels like stepping into a time machine, the one that’s running late.

Yes, delivering this kind of experience sounds simple – but for most institutions, it’s difficult to achieve.

Why asset managers can’t afford to ignore fintech anymore
It’s difficult for traditional asset managers to match the speed and innovation of fintech. Only the largest institutions can afford significant digital transformations. For the rest, being competitive means one thing: partnerships.

Consumers tend to use fintech products because they offer faster and more user-friendly experiences. Knowing this, firms like Morgan Stanley are investing in the infrastructure behind those experiences – for instance, a $20 million investment in a mid-sized provider of embedded financial services. Other leading firms, such as Santander, JP Morgan, and UBS, either partner with wealthtech platforms or acquire them to provide integrated financial services.

Rather than rebuilding from the ground-up, asset managers need to partner with fintech to offer cutting-edge wealth management solutions. This may guarantee that the future of wealth management is embedded, and those who don’t adapt are left behind as consumers demand seamless, ecosystem-based financial services.

Embedded finance isn’t optional
Embedded finance is a fundamental redesign of how financial services are delivered. According to Bain & Company, embedded finance is projected to reach $7 trillion in transaction value by 2026, representing 10 per cent of all financial activity in the US alone.

For financial institutions, the takeaway is clear: relevance now depends on visibility inside other ecosystems. You don’t have to be the app, but you do have to be in the app.

Embedded finance is where financial services are heading – seamlessly integrated, always available, and invisible by design. For a generation that values efficiency, control, and simplicity, this isn’t a preference. It’s the default.

Footnotes

1, https://www.pymnts.com/wp-content/uploads/2024/12/PYMNTS-10-Impact-Statements-Embedded-Lending-December-2024.pdf
2, https://www.adlittle.com/en/insights/viewpoints/embedded-investment-embedded-wealt
3, https://www.finextra.com/newsarticle/45057/morgan-stanley-invests-20m-in-novopayment
4, https://www.bain.com/about/media-center/press-releases/2022/embedded-finance-transaction-value-to-more-than-double-to-$7-trillion-in-us-by-2026-but-financial-institutions-must-move-quickly-to-keep-upbain--company-and-bain-capital-report/

About the author
Arthur Azizov is the founder and investor of B2 Ventures, a private fintech alliance encompassing a portfolio of financial and technology companies, including B2BROKER and B2BINPAY. A serial entrepreneur with over a decade of experience, he has been at the forefront of financial technology innovation, transforming liquidity, trading, and payment services.