Embedded Banking
GeneralDefinition
Embedded banking is the integration of banking services—such as accounts, payments, and cards—into non-banking platforms (e.g. business software, e-commerce, or apps) via APIs. In narrow use it is a form of Banking-as-a-Service (BaaS); in broader use it is used interchangeably with embedded finance (payments, lending, insurance, and other financial services embedded in non-financial products). It is distinct from open banking, which focuses on data sharing rather than embedding full banking services.
Related Terms
Frequently Asked Questions
What is Embedded Banking?
Embedded banking is the integration of banking services—such as accounts, payments, and cards—into non-banking platforms (e.g. business software, e-commerce, or apps) via APIs. In narrow use it is a form of Banking-as-a-Service (BaaS); in broader use it is used interchangeably with embedded finance (payments, lending, insurance, and other financial services embedded in non-financial products). It is distinct from open banking, which focuses on data sharing rather than embedding full banking services.
What does Embedded Banking stand for in Open Banking?
Embedded Banking is a key term in the Open Banking ecosystem. Embedded banking is the integration of banking services—such as accounts, payments, and cards—into non-banking platforms (e.g. business software, e-commerce, or apps) via APIs. In narrow use it is a form of Banking-as-a-Service (BaaS); in broader use it is used interchangeably with embedded finance (payments, lending, insurance, and other financial services embedded in non-financial products). It is distinct from open banking, which focuses on data sharing rather than embedding full banking services.
More General Terms
Embedded Finance
Embedded finance is the integration of financial services—payments, banking, lending, insurance, car...
Open Banking Ecosystem
The Open Banking Ecosystem refers to all the elements that facilitate the operation of Open Banking....
Open Banking Services
The Open Banking services provided by Open Banking Limited to Participants, including but not limite...
Open Finance
Open Finance is the extension of Open Banking-like data sharing and third party access to a wider ra...
Participant
An API Provider, API User, ASPSP, or TPP that currently participates in the Open Banking Ecosystem. ...
PSU
Payment Services UserA Payment Services User is a natural or legal person making use of a payment service as a payee, pay...
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