The term Embedded Finance has lately been used at the drop of a hat, in the world of banking. In simple words, the possibility of transforming every Company into a Fintech firm and enabling enormous economic opportunities is called Embedded Finance. In fact, when Non-financial companies can offer financial products and services to their customer base, it is due to Embedded Finance.
Popular embedded finance offerings include lending, payments, insurance, and branded credit cards. Nowadays, e-commerce retailers offer banking services on their websites instead of re-directing their customers to a bank portal. This is enabled via third-party ‘banking-as-a-services,’ wherein companies use API integrations to embed financial services to provide their customers’ seamless user experience.
ESG Finance stands for Environmental, Social, and Governance,it focuses on sustainability concerning investments for and funding various project initiatives, programs, and businesses. The purpose behind such investments is to promote sustainable development and analyze which companies adhere to it and which doesn’t. The ESG framework ensures no mistreatment of employees, the environment, and communities. Moreover, there are advantages attached to investing in ESG finance, like the potential for high returns, lower risks, etc. In terms of investments, ESG stocks, Mutual Funds are good options.
Now let us understand the different categories under ESG: Environmental covers-Carbon emissions, air water pollution & usage, deforestation, waste management, green energy initiatives. Whereas Social includes-Employee gender diversity, Human Rights at home & abroad, Customer satisfaction, and Company’s policies against sexual harassment. Under Governance, there is-Executive pay, Internal corruption, Diversity of board members, Political contributions, Large-scale lawsuits, and lobbying.
Web 3-As the name suggests, Web 3 is the latest and third version of the World Wide Web. It is a blockchain-based iteration of the internet, which is decentralized in nature. Hence, it does not require centralized authorities’ permission to regulate who has access over which services. It also means that users personal data remains untouched in Web3, making more secure and efficient.
With Web3 on track in finance, cryptocurrency can also substitute as the fiat money. Web3 is dynamic and customizable reason why its more captivating for the users. Coming to its characteristics traits as mentioned earlier it No Permissions are required and is purely decentralized, its transparent, Open-source i.e accessibl to all, and more efficient as compared to Web2.
