In Q4 last year, Citi predicted that embedded lending was “poised to drive fintech’s next wave.” Based on the buzz at Finovate Fall 2025, one of the premier fintech conferences of the season, that wave has arrived.
What is embedded lending?
Embedded lending removes traditional barriers from the lending process. Small business owners no longer need to turn to traditional banking when they need funding. Instead, they can seamlessly access capital right on the platform they use to process payments or manage operations.
How does embedded lending fit into embedded finance?
Embedded lending is a part of embedded finance, which is about seamlessly integrating financial services with non-financial platforms. These services include banking, payments, lending, insurance, and investing. Many apps or ecosystems connect them with various software-as-a-service (SaaS) tools to provide seamless functionality. At Finovate, experts underscored the opportunity with a striking panel question:
“As embedded finance expands beyond banking, how can financial institutions capture the opportunity which could generate over $100 billion in revenue?”
Some day-to-day examples of embedded finance? Paying Uber directly in the app, getting insurance while booking a flight or offering installment payments at checkout.
History of embedded lending
While embedded finance has been around since the early twenty-first century, embedded lending is newer. Buy Now, Pay Later (BNPL) is a well-known early use case of embedded lending. It is a short-term loan for shoppers. Companies like Shopify, Klarna, and Affirm often include it in their online checkout.
Market research analysts expect embedded lending to reach $12.8 billion by 2033, up from just $5.5 billion in 2024, while other areas of embedded finance cool.
Why Embedded Lending was the Star of Finovate
The Finovate floor made one thing clear: embedded lending has morphed into API-driven, instant underwriting platforms. Consumers and businesses can now access capital in seconds instead of weeks.
Three standout demos showed the trends driving this transformation:
1. Speed is the New Currency
LendAPI, winner of Finovate’s Best of Show award, demonstrated how speed is redefining lending. Its platform allows users to launch a mortgage product in under three minutes. With a sophisticated decisioning engine, rules studio, and modeling toolkit, LendAPI reduces time-to-market, slashes operational costs, and unlocks new lending revenue streams.
For platforms that want to embed lending without reinventing infrastructure, developer-friendly, modular APIs (application programming interface) like LendAPI’s are becoming the blueprint.
No need to wait. If you’re a developer, simply head to their website to start a free trial today.
2. Frictionless Customer Journeys Win Borrowers
Krida, an AI-powered business lending tool, also won a “Best of Show” award. It showed that eliminating friction in the borrower experience directly improves conversion rates. From automated workflow management to streamlined document collection, Krida keeps borrower, or customer engagement, while reducing cycle times. Features like pre-filled applications, automated KYC/AML, and real-time fraud checks help reduce drop-off. At its core, Krida proved that embedded lending succeeds when it makes financing as easy as checking out online.
3. Personalization Drives the Next Wave
Y-Combinator backed OmniAI stood out for its ability to personalize borrower user experiences at scale. Its conversational onboarding lets applicants reply via SMS or email, while the AI verifies and autofills data—onboarding users up to 4x faster. A multilingual, 24/7 borrower assistant follows up automatically, shortening loan cycles by 10 days.
OmniAI’s approach reflects a broader trend: embedded lending is evolving from simple speed and automation to highly personalized, full-funnel borrower journeys—from originations into renewals, portfolio management, and repayment. The company’s CEO, Tyler Maran, says:
“Lending isn’t just about moving money faster, it’s about building trust. Personalization makes the process feel less like paperwork and more like partnership.”
The Common Thread
The common thread across all three? Embedded lending wins where it delivers speed, simplicity, and personalization—making capital more accessible and platforms more competitive.
What’s Next for Embedded Lending?
With projections topping $12 billion by 2033, embedded lending is one of fintech’s fastest-growing categories. Finovate highlighted the innovation already reshaping the space, and the next wave of product launches will only accelerate adoption.
We’ve already started conversations with some of these companies and look forward to seeing how the momentum continues at Money20/20 next month. Reach out to schedule a meeting.