How Open Banking Is Powering Embedded Finance Across Europe
Transformation in the European financial industry today is driven by innovative technologies, evolving regulations, and the growing presence of embedded finance. Embedded finance stands out for its ability to fundamentally change the way consumers interact with financial services. By integrating financial services directly into everyday platforms, such as the ability to pay for a ride within the Uber app, users no longer need to rely on separate payment applications, creating a more seamless and efficient experience.
Why Embedded Finance Matters
Embedded finance doesn’t just digitise financial services; it puts them where people already are. Banking, payments, lending, and insurance can now live inside everyday platforms. A customer can finance a purchase in an online store, access SME lending through an ERP, or get instant travel insurance, all without leaving the app they trust.
For businesses, this is more than convenience. Embedded finance is a growth engine:
Boost engagement and loyalty by meeting customers where they already interact
Deliver personalised, data-driven solutions that truly resonate
Create new revenue streams through seamless, embedded offerings
With friction removed, financial services become part of the experience, not an extra step.
European Financial Regulations as a Growth Engine
In banking, regulation doesn’t have to be red tape; it can be a springboard for innovation. SEPA has driven breakthroughs in instant P2P payments, merchant settlements, and fintech apps capable of moving money across the euro area, something private actors alone struggled to coordinate. PSD2 sparked the open banking revolution, and the next wave of embedded finance will be shaped by frameworks like PSD3, FiDA, and the European Data Act (EDA).
These rules unlock permissioned access to new financial data, from mortgages and pensions to investments and insurance, giving businesses the tools to deliver smarter, more tailored services. Navigating the complexity is a challenge, but the payoff is clear: companies that move fast can turn regulatory change into a competitive advantage, offering innovative solutions while staying fully compliant.
Regulations aren’t just obligations, they’re opportunities. For businesses ready to adapt, they’re a powerful engine for growth.
Unlocking Innovation with Data Integration
Embedded finance thrives on smart use of data. Through the integration of financial and non-financial data sets, businesses can develop new solutions that address previously unmet needs. By combining financial and non-financial data, businesses can:
Improve SME and consumer credit risk assessments
Detect fraud faster with AI-driven insights
Deliver tailored financial solutions that meet evolving customer needs
These innovations are particularly relevant as we consider the future landscape of embedded finance. As more data becomes accessible, businesses will need to explore how to use it effectively to offer products that are not only new but also deeply relevant to their customers’ evolving needs. Enable Banking’s APIs make this possible without the burden of building and maintaining data infrastructure, letting businesses focus on delivering real value to their customers.
Collaboration is Key
Non-financial companies across industries are moving into financial services, challenging traditional banks. Retailers are launching their own credit cards or embedding Buy Now, Pay Later (BNPL) into the checkout flow. Airlines are offering travel insurance directly during booking, while logistics and e-commerce platforms are integrating payments, financing, and loyalty programs into their ecosystems. These moves create seamless, tailored experiences that meet customer expectations for convenience and personalisation.
In this environment, collaboration is key. Fintechs bring agility, cutting-edge technology, and a customer-first approach, while established players provide scale, trust, and regulatory expertise. Together, they can deliver integrated financial services that enhance the customer experience, unlock new revenue streams, and maintain operational efficiency, turning the rise of embedded finance into a win-win for both businesses and consumers.
Embedded Finance: Shaping the Future of Financial Services
As we move toward 2030, embedded finance will be standard across industries. The businesses that thrive will be those that adapt quickly, leverage data intelligently, and collaborate strategically.
Success in this evolving landscape means more than compliance. It’s about:
Harnessing open banking infrastructure to access secure, permissioned financial data
Turning transactional and other financial insights into personalised, value-driven products
Collaborating with fintechs and partners to deliver seamless experiences that delight customers
At Enable Banking, we provide the infrastructure, PSD2-compliant APIs, and expertise to help businesses navigate these changes. Our goal is simple: to turn regulatory and technological complexity into opportunities for growth, innovation, and better customer experiences.
The future of finance is embedded, interconnected, and data-driven, and it’s already here. Let’s build it together.