The first era of financial technology was defined by disruption—new companies creating standalone apps and services that directly challenged traditional banks and brokerages. In 2025, the industry is entering a new, more integrated phase, defined by two powerful trends: embedded finance and contextual finance.

This evolution is about moving financial services from being a “destination” that a user has to go to, to being a seamless, invisible part of their everyday digital activities. For the average consumer, this means a future where payments, lending, and even investing are woven into the fabric of their favorite non-financial apps and platforms.

Embedded Finance: Making every company a FinTech company

Embedded finance is the integration of financial services into the products of non-financial companies. The most common example is the “Buy Now, Pay Later” (BNPL) option offered at the checkout of an e-commerce site. The retailer is not a bank, but they have embedded a lending service directly into their purchasing process. Other examples include the ability to buy insurance when booking a flight or the integration of a brokerage service into a personal finance news app.​

This is made possible by a new generation of “Banking-as-a-Service” (BaaS) platforms. These companies provide the regulated infrastructure and APIs (Application Programming Interfaces) that allow any business to easily plug financial products into their own applications. For the consumer, this creates a more convenient and streamlined experience. For the non-financial company, it opens up new revenue streams and dramatically increases customer loyalty. The global market for embedded finance is projected to grow exponentially, transforming industries from retail to travel to social media.​

Contextual Finance: Financial services at the point of need

Contextual finance takes this idea a step further. It’s about proactively offering a financial product at the precise moment a user might need it, based on the context of their current activity. Imagine a user browsing a real estate app: a contextual finance engine could analyze their financial data (with their permission) and proactively offer them a pre-approved mortgage quote directly within the app. Or consider a small business owner using accounting software; as the software detects a potential cash flow shortfall, it could automatically offer a short-term line of credit.​

This requires a deep understanding of user behavior and the ability to process vast amounts of data in real-time, a task perfectly suited for artificial intelligence. AI algorithms can identify these “moments of need” and deliver the right offer at the right time, making the financial service feel less like a product being sold and more like a helpful, proactive suggestion. This level of personalization is a key trend in the evolution of fintech solutions for finance.​

The impact on trading and investment

The world of trading and investment is also being reshaped by these trends. We are seeing the rise of “embedded investing,” where brokerage capabilities are integrated into apps that people use every day. A user of a budgeting app might be able to seamlessly invest their “spare change” into a diversified portfolio, or a reader of a financial news site could instantly buy stock in a company they are reading about. This dramatically lowers the barrier to entry for new investors.

For active traders, the technology underpinning contextual finance is being used to deliver hyper-personalized market insights and trade ideas. A sophisticated trading platform can analyze a user’s portfolio and trading style and then provide contextual alerts about relevant markets or potential hedging opportunities. A platform like the YWO trading platform, which offers a wide variety of account types, can use this technology to recommend the most suitable account or tool for a user’s specific strategy.

The future of invisible banking

The ultimate goal of embedded and contextual finance is to make banking and financial services “invisible”: a seamless, background process that supports a user’s life without requiring them to switch apps or navigate complex financial jargon. This represents a fundamental shift in how we interact with our money.

While this raises important questions about data privacy and security, the convenience and personalization it offers are proving to be a powerful driver of consumer adoption. As this trend continues, the line between financial and non-financial services will continue to blur, creating a more integrated and user-centric digital economy.