By Eduardo Martinez, Co-founder and CEO, Toqio
In today’s rapidly evolving financial landscape, disintermediation of finance, where financial services are embedded directly into non-financial platforms, presents a unique opportunity for corporates to own a bigger share of value and gain control over the financial relationships with their customers to satisfy needs within their merchant networks.
Relying on a single provider can limit flexibility and expose businesses to unnecessary risks, such as service disruptions or unfavorable terms. Multibanking, (which is access to best of breed financial services among use cases and locations) can empower corporates to take full advantage of this opportunity.
Corporates can boost their relevance, drive demand, and strengthen customer loyalty by strategically partnering with financial service providers that align with both their needs and those of their merchants. By integrating these financial solutions into their existing offerings, companies can enhance their overall value proposition, making it more attractive and "stickier" to customers, thereby increasing retention and long-term engagement. Furthermore they can spread these services across multiple providers to lower transaction costs.
This shift not only enables a more streamlined flow of capital but also drives growth, control, and revenue within the network.
The power of embedded finance for corporates
Corporates often rely on third-party financial institutions such as banks, fintechs, and intermediaries to provide payments, financing, and other financial services within their distribution networks. Traditionally, these financial partners are introduced directly to the merchant network, resulting in individual relationships between each financial institution and merchant. However, this approach presents several challenges. It weakens the connection between merchants and the corporate value proposition, reducing loyalty and retention. Additionally, it leads to fragmented service experiences, increased costs, and a lack of transparency into the transactions that are crucial to the corporate’s operations.
By embedding financial services directly into their own propositions, corporates can now:
- Treat their customers as they know them
With embedded finance, corporates can position themselves as the primary provider of end-to-end services, extending beyond their core offerings to include payments, lending, and cash management within their network. This approach grants them greater control over transactions and enables more direct engagement with both merchants and customers. By integrating financial services into their propositions, corporates can foster deeper, long-term relationships, enhance customer loyalty, and create a more cohesive, value-driven experience. - Access new revenue pools
By granting financial institutions access to untapped revenue opportunities within their networks, corporates create a win-win dynamic. Disintermediating traditional financial intermediaries allows corporates to unlock incremental revenue streams, earning from services like lending or payments while enabling financial institutions to capture value from new customer segments. This collaboration transforms financial relationships into strategic growth opportunities for both parties. - Enhance network loyalty and support growth
Embedded finance optimizes the entire supply chain by efficiently meeting stakeholder needs at every stage. This approach provides access to financial services at lower cost points, introduces efficiencies across internal operations and partner networks, and reduces the need for manual interventions. As a result, corporates and their merchant networks gain a competitive edge by reducing operational friction and improving transaction speed and transparency across their ecosystems.
Real-world examples: How embedded finance works
The beverage industry, like many others, is facing a shift. Breweries, distributors, and suppliers are grappling with more than just supply chain complexities, they're also dealing with customer loyalty fatigue. Branded products, once seen as the ultimate driver of customer loyalty and revenue, are no longer enough. Consumers are looking for more than a label; they expect simple, tailored experiences that make their lives easier.
Take, for example, the challenges faced by bars throughout Europe during peak seasons. Cash flow pressures often prevent them from stocking up and meeting demand. Traditional financial institutions are too slow and rigid to offer necessary or innovative solutions. But now, thanks to embedded finance technology, non-financial platforms such as distributors and breweries can offer financing solutions directly, empowering merchants to manage cash flow in real-time.
A recent example from the FMCG sector shows how embedding digital banking products like payment solutions and financing directly into their e-commerce platform helped a company go beyond selling products. By offering financing options linked to merchant payment terms, they not only strengthened partnerships across geographies but also created a seamless experience that built trust and loyalty. Merchants could access the funds they needed, quickly and easily, without waiting for a bank to approve traditional loans.
This shift allows businesses to directly serve the financial needs of their merchant partners, all while sidestepping the traditional banking intermediaries. And for breweries and distributors, this means offering more than just products, it’s about providing real, tangible value that helps merchants sell better, manage cash flow, and build stronger, more sustainable partnerships.
The multi-bank advantage
In today's market, many traditional providers fail to meet the full spectrum of industry demands. Their offerings are often too narrow to provide comprehensive, end-to-end solutions, forcing businesses to juggle multiple providers and systems and creating unnecessary complexity.
A multi-bank approach eliminates this fragmentation by enabling access to a variety of financial institutions within a single ecosystem. This disintermediation allows businesses to select and bundle the best solutions, improving flexibility and operational control.
The advantages of leveraging multi-bank approach are clear:
- A marketplace of products and services
Corporates can easily access a diverse selection of financial products within a single marketplace, streamlining the process of expanding their offerings and accelerating time-to-market. - Customizable financial solutions
By orchestrating multiple financial providers, businesses can tailor solutions that meet the specific needs of their partners, enhancing brand value and reinforcing their role as a strategic partner. - Streamlined processes
Consolidating multiple providers into a unified solution reduces the complexity of embedding financial products into existing processes and user journeys. This enhances operational efficiency, simplifies management across disparate systems, and improves cash flow management.
Conclusion: Seize the opportunity
The disintermediation of finance through embedded solutions represents a powerful shift for corporates. By integrating financial services directly into their market propositions, businesses can capture a larger share of the revenue, strengthen financial relationships, and create more efficient, growth-oriented networks.
About Eduardo Martínez
Eduardo Martinez is an avid entrepreneur who has set up and run successful ventures around the world for the last 22 years. He is the Co-founder and CEO of Toqio, a corporate embedded finance platform that allows companies to create and launch their own fully branded and integrated solutions in just a few weeks. Eduardo spent his early career in senior positions at Accenture where he polished his leadership skills and developed a passion for innovation. This allowed him to co-found Olivo in 2009 and an online business management service called Geniac in 2014. By 2019, he launched Toqio. Apart from his entrepreneurial journey, Eduardo is also an Associate Professor of digital transformation and entrepreneurship at IE Business School.
