Embedded finance is transforming the retail industry by seamlessly integrating financial services into consumer experiences, offering greater convenience and efficiency, according to Sirinpach Lauhapattanapreecha, Chief Governance Officer at ERGO Insurance Thailand.
Speaking on the shift, Lauhapattanapreecha emphasized that the integration of financial services directly within platforms eliminates the need for consumers to leave the site or app to complete transactions. This allows for smoother processes, including purchases, loans, and payments.
However, the rise of embedded finance also introduces significant security challenges, particularly in the realm of cybersecurity. Lauhapattanapreecha pointed out that the increasing prevalence of scams and hacks targeting devices such as computers and smartphones has raised concerns. “These days, we are seeing an uptick in fraud attempts designed to instill fear, making it easier for scammers to manipulate consumers into transferring money,” she explained.
To combat these risks, enhanced security measures, such as hyper-personalisation and multi-factor authentication, are becoming essential. According to Lauhapattanapreecha, the success of embedded finance also hinges on strategic partnerships between banks and technology companies, which enable these services to function securely and efficiently.
A key benefit of this integrated approach is the ability for consumers to access financial products, like buy now, pay later (BNPL) options, directly through mobility platforms. “One of the biggest advantages is the ability to use flexible payment options for high-ticket items and mobility services, offering consumers financial flexibility,” Lauhapattanapreecha noted.
While embedded finance enhances consumer purchasing power and simplifies transactions, Lauhapattanapreecha stressed that businesses must prioritize robust security measures to maintain consumer trust and support sustainable growth in the long term.
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