Embedded Investing: The Future of Digital Wealth Building

Embedded investing has the potential to become the next big step in digital wealth creation. Anything that reduces complexity is adopted more quickly, and that is exactly what this is about.

But as simple as it sounds, embedded investing does not develop on its own. Between platforms, regulations, and technical integration lies a challenging playing field. At the same time, enormous opportunities are opening up for companies that take action early.

Who masters the playing field: Platforms, financial institutions, and technology partners

Unlike embedded payments or loans, embedded investing does not work automatically. It requires the well-coordinated collaboration of three actors:

1. Platforms with access to users

Whether online retailers, super apps, or HR platforms, they already have existing user groups.

2. Regulated financial institutions

Banks, custodians, or asset managers bring the necessary trust and legal foundations.

3. Technology partners like WealthTechs

They connect user experience and regulatory requirements. APIs, algorithms, and advisory technologies create the bridge between platforms and the financial world.

The interplay of these three groups will determine who will lead in embedded investing.

Why embedded investing is more complex and valuable than payment

Payments or loans directly support the core business of many platforms. Investing is different. It's about trust, long-term thinking, and financial education.

And this is where the great advantage lies: Customer loyalty is not created through a single transaction, but through continuous wealth building. Those who support their customers in growing will remain relevant in the long term.

The regulatory challenge: Opportunities and risks

The more processes are embedded, the more traditional boundaries blur. Advisory, execution, and custody often converge within one app.

But nothing changes from a regulatory perspective. Issues like liability, target market definition, and documentation obligations remain. Moreover, onboarding often occurs multiple times because advice and custody are with different providers, creating unnecessary friction points.

A true revolution in embedded investing would be possible if portable KYC profiles and digital risk profiles were introduced. This would allow users to easily carry their identity and investment preferences without having to verify themselves repeatedly.

Visionary use cases: What is already possible today

Direct investments through payroll

Employees automatically invest a portion of their bonuses in sustainable ETFs. A real step towards financial health. Although there is currently no widespread model where employees automatically invest a portion of their bonuses in sustainable ETFs, there are company pension offerings (bAV) in Germany that allow employees to invest directly in funds via payroll. An example of this is the Allianz Direct Insurance or the offerings from DWS. Additionally, many companies offer Employee Stock Purchase Plans (ESPP) where employees can automatically invest a portion of their salary in company shares.

Super apps with integrated investing

Cashback is automatically saved. Purchases become capital investments. Investing becomes part of everyday life. In Latin America, Rappi is evolving into a super app that offers not only delivery services but also financial services like RappiPay. This platform integrates payments, credit cards, and other financial products into a single app, making access to investments easier.

Luxury brands and private markets

Some luxury brands are exploring the realm of digital assets. For instance, the watch brand Hublot has combined limited editions of its watches with NFTs that represent exclusive digital artworks. These initiatives demonstrate how luxury brands are beginning to integrate investment opportunities into their products.

Investing instead of buying on credit

Instead of paying later, customers use their investments or crypto assets as collateral – a new, smart form of financing. Platforms like Bitpanda allow users to use cryptocurrencies as collateral for loans. Through crypto lending, users can access liquid funds without having to sell their crypto assets.

E-commerce as an entry point into investing

When buying sneakers, invest ten euros directly into a global ETF. Financial education becomes a means of customer retention. The platform extraETF offers investors the opportunity to invest in e-commerce ETFs that include companies like Amazon, Alibaba, and MercadoLibre. This enables users to indirectly invest in online commerce and benefit from its growth.

Conclusion: Embedded investing needs depth, not just a nice surface

Embedded investing is not just a nice add-on. It is the intelligent connection of infrastructure, trust, technology, and relevance. The future does not belong to the apps that shout the loudest but to those that seamlessly combine financial education, advice, and technology. And yes, investing will not simply be the new payment process. It will be better. Because embedded investing helps people build wealth, prepare for the future, and achieve financial freedom – embedded in their daily lives.