What is embedded banking: A new way to access financial services

How embedded banking can revolutionize your financial experience.

Embedded banking is a new concept in the financial industry that allows customers to access banking services seamlessly through non-banking platforms and ecosystems. CIMB Bank PH, a pioneer of this model, enables non-banking entities to offer payments, savings, and lending services to their growing bases, benefiting Filipino consumers who are digitally savvy.

Embedded banking means integrating financial services within platforms such as e-commerce websites, social media apps, or super apps. Customers can use a wide range of banking services without switching between multiple applications or interfaces. The bank is embedded where the customers are. For example, GCredit in GCash mobile wallet and SPayLater in Shopee e-commerce platform are both underwritten by CIMB.

One of the benefits of embedded banking is that it can enhance financial inclusion. By partnering with service providers, banks can reach more customers, including those who may not have access to traditional banking products due to multiple know-your-customer (KYC) requirements. This approach makes financial products and services more accessible and inclusive for individuals who had limited banking options before.

Another benefit of embedded banking is that it offers convenience and a seamless experience. By offering financial services directly through everyday platforms, customers can make transactions, manage savings, get loans, and make payments within a single interface. This simplifies financial management, saves time, and improves convenience for customers.

Embedded banking is a groundbreaking shift in the banking industry that empowers customers with personalized, convenient, and inclusive financial experiences.

“Service providers will need to embed finance and banking capabilities in their ecosystems and platforms as more and more services digitize,” said Suraj Ramchandani, chief growth officer of CIMB Bank Philippines. “We bring the bank to the consumer where they perform their daily activities.”

CIMB has pioneered the ecosystem play by collaborating with strategic partners to provide a joint offering to their common users through an enhanced value proposition. Ramchandani cited GCash as an example of a partner where CIMB powers GCash’s savings product, CIMB GSave, which offers Filipinos a high savings rate and an accessible savings product. He also said CIMB powers and manages GCredit, a digital revolving credit line that customers can use across various merchants and payment needs, while GCash provides the platform for the product.

CIMB Bank PH will soon launch more embedded banking partners and unique product features to help provide easier access to underserved segments such as overseas Filipinos and micro and small to medium entrepreneurs, enabling them to live their purpose as well as everyone else.

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