PWC: Managing risks in the transition to integrated financial services
Embedded finance presents a compelling set of possibilities for businesses to reach customers in new ways, build operational scale, and rethink how products and services are deployed. But as is often the case, these opportunities are accompanied by risks.
Success across the embedded finance spectrum—from one-off point-of-sale (POS) technology to solutions for full vertical integration with multiple third parties—requires a major shift in mindset and capabilities.
Our proprietary risk framework sets out five emerging areas for participants within financial ecosystems to consider, stretching beyond existing risks that are inherent to financial products. The five areas include: interoperability, data containment, complex partnerships, vulnerable customers and distributed risks.
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