Creating Flexible, Innovative Financial Platforms

For businesses serving SMEs, integrating flexible and innovative financial solutions is critical. These platforms must adapt to evolving market needs and embed seamlessly into daily operations. Here at Red Badger, working alongside Adyen, we can bring the expertise and technology needed to build such platforms.

What is Embedded Finance?

Embedded finance refers to the integration of financial services into non-financial platforms, applications, or ecosystems. This means that various financial services, such as payments, lending, insurance, and banking, are embedded directly into the platforms that businesses and consumers use daily. By incorporating these services seamlessly, businesses can enhance their offerings, streamline workflows, and provide a more convenient and efficient user experience. For SMEs, embedded finance can solve core challenges like access to funding and financial management, directly within their everyday operations.

Addressing SME Needs  

SMEs often lack access to tailored financial services. Platforms that offer embedded finance can fill this gap, integrating essential services directly into their offerings. A study by BCG and Adyen found that 64% of SMBs are interested in financial services embedded within a platform, highlighting a significant market demand. 

Driving Growth

Platforms are uniquely positioned to address the financial needs of SMEs. By incorporating services like cash advances, bank accounts, and card issuing, platforms can deliver solutions directly within the SME workflow, improving efficiency and convenience.

Red Badger’s Approach to Platform Development

Customised Solutions

Red Badger develops flexible platforms tailored to meet unique business requirements, ensuring that platforms can evolve with business growth and market changes.

Composable Architecture:

A composable platform architecture allows businesses to add or remove features without overhauling the entire system, enhancing flexibility and reducing update costs and downtime.

Innovative Financial Solutions from Adyen

Real-Time Payments and AI-Driven Fraud Detection

Adyen provides advanced technologies such as real-time payments and AI-driven fraud detection, enhancing security and operational efficiency for platform users.

 Embedded Finance Opportunities:

Adyen’s embedded finance solutions include cash advances, bank accounts, and card issuing. These services offer a quick path to market and can drive significant revenue growth. According to Adyen's Guide on Embedded Payments, the embedded finance market in the US, Europe, and the UK is valued at approximately $110 billion

Embedded Finance Future Trends

Modular Financial Services:

Composable platforms enable businesses to offer modular services like loans, payments, and insurance. This flexibility allows customers to select services based on their needs, increasing satisfaction and loyalty.

AI and Data Analytics:

Integrating AI and data analytics can transform financial services, offering real-time insights, enhancing fraud detection, and personalising customer experiences.

Blockchain and Decentralised Finance

Blockchain and decentralised finance (DeFi) technologies are set to revolutionise financial transactions, offering more secure and transparent services.

 Sustainability and Green Finance

Incorporating green finance options and sustainable investment products into platforms can attract eco-conscious customers, a trend expected to grow in importance.

Flexibility and innovation are essential for developing financial platforms that meet the dynamic needs of SMEs. Partnering with Red Badger and Adyen ensures you have the tools and expertise to create a platform that drives growth and enhances customer satisfaction.

Explore how Red Badger and Adyen can help you build a flexible, innovative financial platform. For more information, visit Adyen's Guide on Embedded Payments.