FinTech firm FIS is working with Banking-as-a-Service (BaaS) startup Treasury Prime to launch an embedded finance tool, according to a Wednesday (May 11) press release.
“Embedded finance is a key industry trend that enables any company to become a FinTech company by embedding financial services capabilities such as banking, credit, payments, insurance and investments in their digital channels,” the release stated.
The launch of this application programming interface (API)-based product comes one month after FIS debuted its BaaS hub, a tool the company said provides “a full suite of banking and payments capabilities for institutions of all sizes.”
Read more: FIS Announces Banking-as-a-Service Hub for Financial Institutions
The Jacksonville, Florida-based company said in the release the embedded finance tool will help small- to medium-sized financial institutions (FIs) compete by offering them enhanced digital banking options.
FIS’ banking clients — and the businesses they serve — will gain new ways to manage deposits, accounts payable (AP) and other important banking functions remotely and digitally, according to the release. FIs can also use embedded finance to expand their client base beyond their local footprint.
“Embedded finance is a growing trend in the market because it allows businesses to bring innovative ideas quickly to market by combining financial services with user experiences right at point of need,” said FIS Head of Payments Kelly Beatty in the release.
She added that embedded finance also brings the convenience of in-app purchases to commercial uses like lending, bill pay and insurance.
“These are all experiences centered around the needs of customers,” Beatty said in the release. “By integrating financial services into business software, those consumer expectations are met in new channels and extend the vast reach of financial services.”
Embedded finance experiences among consumers are continuing to rise, as PYMNTS reported earlier this year. One study found 23% of consumers had used buy now, pay later (BNPL), an embedded payment method that splits larger purchases into smaller installments at the point of sale (POS).
See more: How Embedded Finance Can Help Businesses Streamline Their B2B Payment Processes And Stay Competitive