Pragmatic Coders Blog Embedded finance vs banking as a service: here's the difference

In the financial world, two trends are reshaping the landscape: embedded finance and banking as a service. These innovations are not just buzzwords; they're revolutionizing how we interact with financial services. Gone are the days of traditional banking models holding sway. Today, embedded finance and BaaS are blurring the lines, integrating financial services into our daily digital experiences. This shift is significant. It reshapes how financial service providers operate and how custom fintech software is built. Numbers are staggering: Global venture capital investments in embedded finance soared to $4.2 billion a couple of years ago and the estimated global value of embedded banking services is projected to hit $7.2 trillion in the next decade.