Internal Embedded Lending: The Digital Opportunity FIs Have in Their Own Backyards

In a departure from embedded lending that takes place at the point of sale or outside the authenticated banking experience, financial institutions can use their proximity to and knowledge of active customers to embed lending at appropriate moments in digital banking journeys. FIs should tap into their long-standing consumer relationships and contextual data to anticipate borrowing needs before consumers seek financing. 

The goal is to use permissioned, relationship-based insights to provide timely borrowing guidance. The broader objective is to establish the FI as a trusted, reliable source for borrowing and reaffirm lending as a fundamental component of a primary banking relationship. 

Key questions discussed in this report:

• What is the value FIs can realize by incorporating lending into their own digital backyards?
• What are the pivotal moments when FIs can incorporate lending without eroding customer trust?
• Which digital journeys are most conducive to internal embedded lending?

Companies Mentioned:

Chase, Wells Fargo