An urgent task for banks: Contextualizing their financial products

In an increasingly digitalized world, consumers and businesses are seeking faster, more personalized, and more accessible financial services. The revolution of "contextualized finance" is enabling more and more financial, and non-financial institutions, to offer solutions that are closer to, and better adapted to users' needs and behaviors. This new reality is changing how banks interact with their clients, and the key to this shift lies in having a consumer-centric mindset.

Contextualized finance refers to the integration of financial services directly into the platforms or products of non-financial companies, without the need for the consumer to directly interact with a bank in a traditional way. That is, instead of going to a bank branch or swiping through separate banking applications, consumers can access financial products while carrying out their daily activities, whether shopping online or using an app.

A clear example of this trend is seen in social media platforms like Instagram or TikTok. They have enabled a marketplace within their own interfaces. Instead of sending users to an external website or a separate store, these platforms allow brands to sell directly within the app. This phenomenon not only improves the shopping experience but also simplifies payment processes by integrating options inside the same platform and allows platforms to generate/capture revenue off of their customers/users' sales/purchases.

This concept of seamless integration of services within a familiar and comfortable environment for the user, can also be applied to the financial sector. Financial institutions are beginning to offer services directly through non-traditional channels, such as e-commerce platforms, transportation apps, or even through partnerships with large companies to reach out to SMEs. This strategy is a huge opportunity for banks and other financial entities to create new channels that are more convenient and relevant for consumers.

A Customer-Centric Mindset

The focus of contextualized finance is clear: the customer. This model places the them at the heart of the strategy, adapting services to their behavior, expectations and needs in real time. Instead of waiting for customers to actively seek financial services, contextualized finance offers them solutions exactly when and where they need them.

For instance, instead of making a bank customer apply for a loan through a separate banking app, they could be receiving a personalized offer directly when purchasing an item online. Similarly, a small or medium-sized enterprise (SME) could gain access to financing solutions integrated into the same platform they already use to manage their inventory.

This not only improves the customer’s experience but also opens the door to the adoption of financial services among sectors or markets that might have not previously considered accessing them. By integrating these solutions into their platforms, corporates can offer accessible financial products to a wider range of users, without the need for intermediaries.

Agent 2.0’, the key player in Contextualized Finance

In this context, a new concept emerges within contextualized finance: the "Agent 2.0" This term describes the role large companies can play, alongside financial institutions. They become a secure and effective channel for offering personalized products to small and medium-sized enterprises (SMEs). Through their existing relationships and their knowledge of their networks, these large companies can act as intermediaries between financial providers and SMEs, which oftentimes struggle to access quality financial products.

As for banks, this model presents a unique opportunity: instead of relying solely on traditional channels to reach SMEs, "the Agent 2.0" allows for the expansion of financial solutions distribution without the need for large acquisition investments. Corporations, thanks to their robust value chains, serve as a natural bridge to customers and distributors. This ultimately creates a win-win-win impact: for corporations themselves, for SMEs, and for banks and financial institutions. For banks and FIs, it specially generates:

1. Growth opportunities: Unlock new revenue streams in payments and lending while deepening SME portfolio and engagement.
2. Lower acquisition costs: Use corporates as distribution partners to cut SME acquisition costs and expand into new markets.
3. Safer lending: Reduce lending risk by relying on corporates who vet and monitor partners within their supply chain.

4. Smarter underwriting: Leverage ecosystem data to improve risk visibility and deliver faster, more accurate credit decisions.

Contextualized finance is speeding up the entrance into a new era for the financial sector, where technology, personalization, and accessibility converge to create more adaptive experiences. With technology advancing rapidly, companies and financial institutions now have more tools than ever to bring financial services closer to individuals and businesses, with offerings truly tailored to their needs.

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Successfully delivering contextualized finance requires more than innovation, it demands a strong foundation of trust, security, and compliance. For banks and financial institutions, this means navigating complex regulatory frameworks, from local licensing requirements to global standards such as PSD2 and PCI DSS.

Equally critical is data governance: contextualized finance depends on the collection, integration, and analysis of data from multiple sources; ERP systems, CRM platforms, and transactional flows across networks of SMEs. Proper governance ensures that sensitive information is handled securely, used ethically, and transformed into actionable insights that drive smarter underwriting, sharper forecasting, and highly relevant financial products.

In practice, this means any corporation can launch sector-specific financial offerings to its SME clients, leveraging Toqio’s platform to manage compliance, integrate real-time data, and automate workflows. At the same time, banks and financial institutions can act as trusted providers behind these solutions, using corporate networks to access vetted clients, reduce acquisition costs, and minimize risk. The result is an ecosystem where innovation, regulation, and operational excellence coexist, enabling faster time-to-market and more impactful financial solutions.

With Toqio, banks and financial institutions are not just adapting to a digital-first world, they are leading it. By embracing a consumer-centric approach, embedding compliance and data governance from the ground up, and tapping into a collaborative partners marketplace, contextualized finance becomes a scalable, secure, and growth-oriented strategy. The future of financial services is here, with Toqio turning opportunity into impact.

By Mike Galvin Co-Founder & Chief Partnerships Officer at Toqio