Enabling Access To The Affiliate Marketing Market For Financial Institutions Through Embedded Finance

By 2029, it's estimated that the revenue of embedded finance services will reach $384.8 billion, a significant increase from the revenue generated in 2020 ($22.5 billion). 

Aside from banking, payments, and insurance, embedded finance is also used in advertising, namely, affiliate marketing, which provides seamless and invisible experience for the partners. Embedded finance solutions can be integrated into the services or business processes of financial institutions, which allows them to expand their services and provide added value to customers outside of their typical range. 

Solving Market Challenges With Embedded Finance

Affiliate marketing is a massive martech industry with a pressing need for financial products, which until now, financial institutions have been unable to satisfy directly. This gap results in publishers facing cash flow issues and a lack of credit, while financial organizations miss out on potential profits by not effectively engaging with this lucrative segment.

Some leaders of this market have responded to the challenge. The global marketing tech company Mitgo Group has acquired Embedded, an international embedded finance platform. This aligns with Mitgo Group’s strategic expansion into the fintech services market for the affiliate marketing sector, which is projected to exceed $15.7 billion in spending this year, up from 2023’s $14.4 billion. The company is planning to facilitate 7% of the transaction volume from the affiliate marketing sector within the next three years.  

By leveraging embedded finance, Mitgo Group aims to bridge this gap, providing publishers with immediate access to earnings withdrawals, loans, and improved transaction speeds. This approach is going to not only solve the pressing needs of publishers, but also to open up new profit avenues for financial organizations. These institutions can now partner with Mitgo Group to offer their financial products to a broad audience of publishers, tapping into an unmet demand within a growing market.

Global financial institutions are expressing more interest in embedded finance. Last year, Mastercard’s Sherri Haymond, in an interview with PYMNTS, said, “Banking as a Service (BaaS) and embedded finance, taken together – they just represent where the world is going.” 

Towards The Adtech-Fintech Collaboration

The future of embedded finance in adtech holds immense promise as it continues to revolutionize traditional financial services. With its seamless integration into advertising technology platforms, embedded finance is poised to streamline transactions, enhance customer experiences, and unlock new revenue streams for businesses. 

As adtech experiences new growth, embedded finance is going to shape the landscape of financial services within the advertising ecosystem.

This article is from an unpaid external contributor. It does not represent Benzinga's reporting and has not been edited for content or accuracy.