"Financial technology is now entering its third act, marked by a significant shift in how platforms and businesses interact with financial services. The first wave brought democratization, with businesses gaining access to online credit and lending tools aimed at leveling the playing field. The second wave moved these products inside platforms, embedding payments and finance into everyday software workflows. Despite their impact, these steps left business owners managing multiple fragmented systems."
"Today, platforms are in a race to embed financial services; as of 2021, 73% planned to integrate lending features into their software within two years. The opportunity is huge: Such integrations can increase EBITDA, retention, and user acquisition for platforms. Yet, most current efforts stick to static, product-first solutions rooted in earlier fintech phases. The real transformation is reaching its third act-platforms evolving into true financial operating systems (OS): intelligent, integrated, and predictive."
Financial technology is entering a third act characterized by platforms embedding integrated, intelligent, and predictive financial services into core software workflows. The first act increased access through online lenders and challenger banks using bureau data and alternative signals, but left financial assets siloed from business operations. The second act embedded single products such as payments, lending, accounting, and payroll into platforms, reducing some friction but creating fragmented, static solutions. Platforms increasingly plan to integrate lending—73% intended to add lending features within two years as of 2021—reflecting the economic upside in EBITDA, retention, and user acquisition. End users demand financial problem resolution directly inside platforms.
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