Enabling financial institutions access to affiliate marketing markets through embedded finance

By 2029, embedded financial services revenue is estimated to reach $384.8 billion, a significant increase from 2020 revenue ($22.5 billion).

Besides banking, payments, and insurance, embedded finance is also used for advertising, or affiliate marketing, providing a seamless and invisible experience for partners. Embedded financial solutions can be integrated into a financial institution's services and business processes, allowing them to extend their services and provide added value to customers beyond their normal scope.

Solving market challenges with embedded finance

Affiliate marketing is a large martech industry with a pressing need for financial products, but until now, financial institutions have not been able to directly meet that need. This gap leaves publishers facing cash flow problems and credit deficiencies, while financial institutions fail to effectively engage with this lucrative segment and miss out on potential profits.

Some leaders in this market are responding to this challenge. Mitgo Group, a global marketing technology company, has acquired Embedded, an international embedded finance platform. This is in line with Mitogo Group's strategic expansion into the fintech services market in the affiliate marketing sector, with spending expected to exceed $15.7 billion this year, up from $14.4 billion in 2023. The company plans to promote his 7% of its trading volume from affiliates his marketing department over the next three years.

Mitgo Group aims to bridge this gap by leveraging embedded finance, giving publishers instant access to revenue withdrawal, financing, and increased transaction speed. This approach not only solves a pressing need for publishers, but also opens up new revenue avenues for financial institutions. By partnering with Mitogo Group, these financial institutions can now offer financial products to a wide range of publishers, allowing them to tap into unmet demand in a growing market.

Financial institutions around the world are increasingly interested in embedded finance. “When you take banking-as-a-service (BaaS) and embedded finance together, they just represent where the world is headed,” Mastercard's Shelley Haymond said in an interview with PYMNTS last year.

Towards collaboration between adtech and fintech

The future of embedded finance in adtech holds great promise as it continues to revolutionize traditional financial services. With seamless integration into advertising technology platforms, embedded finance is poised to streamline transactions, improve customer experience, and open up new revenue streams for businesses.

As adtech achieves new growth, embedded finance will shape the landscape of financial services within the advertising ecosystem.

This article was contributed by an unpaid external contributor. This does not represent Benzinga's reporting and has not been edited for content or accuracy.