Embedded finance, the release noted, refers to the integration of financial service technologies with other provider solutions.
The method will grow tenfold in the next five years, the release stated, citing a Lightyear Capital analysis, as businesses look for ways to access simple, transparent business solutions.
Nav’s new product will offer financing profiles in which users will be able to avoid filling out forms and providing data to numerous lenders in favor of intelligent tech that will be able to identify personalized funding matches, the release stated. It will also offer a full-service funding manager team so enterprise partners can offer users expertise.
Nav CEO Greg Ott said the embedded finance industry is thriving for good reason in the current economy.
“Traditional banking isn’t built to serve small businesses, and financial technology is quickly filling that gap,” he said, according to the release. “This demand is made far more urgent by COVID-19. We’re witnessing an inflection point in embedded finance today, amidst extremely uncertain times. SMB owners need simpler, transparent access to capital. And on the flipside, lenders and service providers need data to innovate faster and deliver better offerings. Embedded finance solves this on both sides.”
Nav launched Clover, its first embedded finance offering, in 2018, providing credit score insights, business credit monitoring and offers from a “curated” list of lenders and credit cards, the release stated. The data can be used to offer predictions, help companies improve their products and boost customer retention.
Ott told PYMNTS earlier this year that the debt financing in the current SMB ecosystem is often inefficient and can work to heighten costs and boost risk for lenders.