Established financial institutions continue to see their services replaced by software from tech startups.
Tech startups have proven that they could offer their customers almost anything they need, from banking to credit to insurance.
Experts have argued that traditional lenders are being pushed further and further away from the front end of the financial process, restricting their access to a lot of data that will be crucial to them gaining an advantage.
Investors have poured $4.25 billion into embedded finance startups this year, nearly three times as much as in 2020.
According to one industry expert, “Big banks and insurers will lose out if they don’t act quickly and work out where to play in this market.”
For more information, read the original story in Reuters.