You don’t open a bank app, you don’t think about the transfer, you just pay, and move on. This simplicity is no accident but a part of a global transition where financial services are no longer exclusive to banks but are now built into everyday platforms.

By 2030, embedded finance is projected to generate more than $7 trillion globally, a value greater than the entire traditional banking sector today. That scale shows it is not a passing trend, but a structural transformation in how money moves.

What Exactly is Embedded Finance?

At its core, embedded finance means integrating financial services such as payments, lending, insurance, or even investment, into non-financial products. Think of it as financial “plug-ins” that sit inside platforms we already use.

It explains why you can:

• pay seamlessly on Uber without opening a separate app,
• access a small loan at checkout on Jumia,
• or insure your device as part of an online purchase.

Unlike traditional finance, where transactions are separate, embedded finance blends money and service into one smooth experience.

Why Now?

Several forces are making this model more urgent:

• The cashless policy: In Nigeria, government policy and banking reforms are pushing more people into digital payments.
• The rise of APIs: Platforms like Flutterwave, Paystack, and Mono have made it simple for non-fintech businesses to plug in financial features.
• Changing customer behaviour: Today’s consumers expect transactions to be quick, seamless, and invisible.

In short, finance is no longer a back-end activity. It has become the glue holding digital ecosystems together.

Global and Local Case Studies

Across the world, companies that didn’t start as financial institutions are quietly becoming one:

• Uber made cashless rides a global standard by embedding payments.
• Shopify lends directly to its merchants through Shopify Capital, turning e-commerce into finance.
• Amazon used one-click payments and Buy-Now-Pay-Later to strengthen customer loyalty.

In Africa, the trend is even more visible:

• OPay evolved from a wallet into a financial lifeline for millions of small businesses.
• JumiaPay provides credit and seamless payments right inside the marketplace.
• MTN MoMo started with airtime top-ups and now powers transfers, savings, and merchant payments across multiple countries.

None of these began as banks, but today they are central to financial lives.

Opportunities and Risks

For startups, embedded finance is not simply a feature, but a growth strategy. It provides new revenue streams, strengthens customer loyalty, and helps reach people who remain underserved by banks.

But the transition comes with challenges:

• Heavy reliance on technology and connectivity,
• Regulatory grey zones where the rules are still being written,
• Growing cybersecurity risks as more apps handle financial data,
• The constant need to earn and maintain user trust.

Handled well, these risks are manageable. Ignored, they can sabotage both startups and customers.

The future points towards financial services that disappear into the background. Traditional banks may become infrastructure providers, while everyday platforms handle customer interactions. 

E-commerce sites could compete both on price and on who offers the best credit at checkout. Insurance might be offered instantly during purchases. Gig workers may no longer wait days for their earnings.

Finance, in other words, will be everywhere, but rarely noticed.

The ability to pay a bike rider with a tap, borrow working capital directly from a digital marketplace, or access health insurance bundled into a subscription service are all made possible through embedded finance.

At a time when inflation is squeezing incomes and traditional banking feels distant for many, these services provide both opportunity and relief. But they also require safeguards, because when money becomes invisible, people need to know it is still secure.

Embedded finance is not about replacing banks, but about reimagining how financial access fits into daily life. For startups, it has become the secret weapon for growth and customer retention. For consumers, it promises convenience and inclusion, though it carries its own risks.

The question is not whether embedded finance will grow, that is already happening, but how it will bolster the future of money for both businesses and individuals.

But then, billions still don’t trust the systems built for their benefit. As the World Bank’s Global Findex 2025 shows, usage continues to lag behind access. In Nigeria, the paradox is especially obvious, despite digital advances, old fears, cultural divides, and gender gaps keep many out of the system.

Techeconomy sat down with Akinlabi G. Adegoke, chief digital officer at Lotus Bank, to go beyond the numbers. With decades of experience in digital banking, from his pioneering work at ALAT to his current role at Lotus, Adegoke doesn’t just talk technology; he talks about human habits, values, and the trust deficit stalling progress.

In this wide-ranging conversation, he dissects the illusion of inclusion, exposes why savings habits remain informal, and challenges banks and regulators to rethink how they design products, build resilience, and reach the underserved, particularly women and the disconnected poor.

What follows isn’t just a reflection on digital banking, but a blueprint for building a financial system that people actually believe in and use.

TE: The World Bank’s Global Findex 2025 reveals commendable progress in digital financial inclusion globally. However, it also exposes deep-rooted challenges in trust, savings habits, and gender inclusion, especially in regions like Sub-Saharan Africa. From your perspective as a digital leader in Nigeria’s banking space, what stood out to you most in the report?

Akinlabi: What struck me is the paradox behind the progress. It’s impressive that nearly 80% of adults worldwide now have some form of account access. Yet beyond those headlines, the report highlights that simply having an account isn’t the same as really using or benefiting from it.

There’s still a trust and usage gap. Many people remain sceptical about formal finance, don’t save in their accounts, or limit activity due to fears and habits. The persistent gender divide also stood out. Women are still being left behind in many markets, which means we’re not fully tapping our potential.

For me, the big message is that the next real challenge isn’t expanding access, it’s building trust and inclusion. We have to ensure digital financial tools translate into genuine, everyday usage that improves people’s lives.

TE: Despite account ownership rising to 79 percent globally and 75% in low and middle-income countries, over 1.3 billion adults still lack financial accounts. In your view, why does adoption lag behind access in Nigeria, and how can banks like Lotus bridge the trust gap?

Akinlabi: In Nigeria, access is no longer the main barrier. Banks have expanded reach through agents, mobile apps, and digital accounts, but usage lags because trust hasn’t caught up. Many people still hold on to past experiences or hearsay.

They’re unsure if fees are hidden or if their money is truly safe. To bridge that gap, banks need to show up differently. At Lotus, we focus on transparency, zero hidden fees, and stability. We also build solutions that reflect people’s values. As an ethical bank, our approach appeals to people who want alternatives to traditional interest-based models.

Most importantly, we meet people where they are through education, community presence, and consistent service. If people experience banking that works and feels fair, trust begins to build, and with that, usage follows.

TE: The report shows that 40% of adults in Sub-Saharan Africa now have a mobile money account, up from 27% in 2021. Yet only about half of these users in the region secure their phones with passwords. What role should banks and regulators play in digital literacy and consumer protection as mobile finance grows?

Akinlabi: The growth is great, but it’s a red flag that many users still don’t secure their phones. That’s like leaving your wallet open on a park bench. Banks and regulators have to take a more hands-on role in digital literacy and security.

At Lotus, we design our mobile platforms to require authentication, PINs, biometrics, and two-factor prompts. We also run in-app prompts and SMS nudges to encourage safe habits. But we can’t do it alone. Regulators need to set minimum safety standards and run coordinated public education drives. We should normalize conversations around digital safety the same way we do around fraud alerts.

As mobile finance grows, security can’t be optional. It has to be built into every level of the ecosystem, from onboarding to the interface to the policy side.

TE: With formal saving increasing by 16% points globally to 40% between 2021 and 2024, how is Lotus Bank leveraging mobile platforms and ethical finance to nudge informal savers, especially in rural Nigeria, into the formal financial system?

Akinlabi: A lot of Nigerians still save in cash or with informal groups because it’s what they know. We bring formality to them in a way that feels familiar and safe. Through our USSD and mobile platforms, people can open an account in minutes, even on a basic phone. Then we layer in features like auto-save or savings pockets that feel like traditional thrift savings, but safer and more accessible.

What helps us stand out is our ethical banking model. We don’t pay or charge interest, which resonates with people whose beliefs or culture may keep them away from conventional banks. Instead, we focus on profit-sharing models or fixed charges.

That builds trust. So, in short, we use tech to remove friction and values to build confidence. Over time, that draws informal savers into formal banking without forcing them to change who they are.

TE: Sub-Saharan Africa has the largest gender gap in smartphone ownership and mobile money use. Over 300 million women globally still lack mobile phones. How can digital banks like Lotus design inclusive solutions that empower female users without reinforcing digital inequalities?

Akinlabi: It starts with acknowledging that access and usage are different for women. Many don’t own phones or have full control over them. So we build services that work on basic phones, through USSD and SMS. We also recruit and train female agents within communities. That way, women can bank through someone they trust, in a space that feels comfortable.

On the design side, we simplify interfaces and add voice support features to help people who are not fully literate. Most importantly, we take feedback directly from female users and cooperatives to understand what actually works for them. Inclusion has to be deliberate. It’s not just about putting a product out. It’s about designing the right product and ensuring women feel seen, safe, and supported when they use it.

TE: According to the Findex data, 31% of unbanked adults in low and middle-income economies, including half of those in Sub-Saharan Africa, also lack a mobile phone. How can the financial sector ensure inclusivity in such digitally disconnected demographics, especially where affordability remains the biggest barrier?

Akinlabi: When someone doesn’t even own a phone, we have to go back to basics. That’s where agent banking comes in. We work with local agents, people already well-known in the community, to serve as the access point for banking.

They can help open accounts, manage deposits, and initiate transfers. It’s face-to-face, but powered by tech behind the scenes. On top of that, we need partnerships that make phones more affordable. Subsidizing low-cost devices, bundling basic data access with banking, or working with telcos to roll out shared community phones are ways we can close the gap.

Digital banking doesn’t have to mean everyone has a smartphone. It can mean everyone has access to someone who does, until they can afford their own. That’s how we start.

 TE: Only 56% of adults in low and middle-income countries are financially resilient enough to access emergency funds within 30 days. How is Lotus Bank thinking about financial health, not just access, especially in designing savings, insurance, and credit products that promote resilience?

Akinlabi: At Lotus, we see access as step one. Step two is helping customers build the habits and buffers that protect them during tough times. One example is our Save-As-You-Earn feature. Every time money comes into your account, a portion can go directly into a savings pocket. It’s automatic and low-effort, which makes it more likely to stick.

We’re also building micro-insurance offerings, low-cost coverage for health or emergencies, and ethical credit products with transparent repayment terms. Because we don’t charge interest, there’s no compounding debt. It gives people room to breathe.

We also use simple nudges, reminders to save, prompts to set financial goals, and educational messages that explain why small actions today matter tomorrow. Our goal is not just to grow balances, but to help people feel secure and prepared.

TE: Given your previous work at ALAT by Wema and now at Lotus Bank, what innovations or policies do you believe are urgently needed to transition Nigeria’s cash-heavy informal economy into a robust digital ecosystem that people actually trust and use regularly?

Akinlabi: It comes down to three things: trust, ease, and relevance. We need digital tools that work as smoothly as cash but come with more benefits. For example, standardizing QR payments and making wallets truly interoperable would go a long way. We also need to keep designs simple and intuitive. Not every user is tech-savvy, but everyone wants to transact fast and without hassle.

From a policy angle, the government should support infrastructure upgrades and enforce consumer protection. Nothing damages trust faster than a failed transaction or unresolved dispute. Agent networks should be expanded, not just in rural areas, but across markets and informal zones where cash dominates. Lastly, we need more collaboration.

Banks, fintechs, and telcos need to share infrastructure and data safely so we can offer connected services that fit into people’s real lives. If we make digital banking feel safer, faster, and more useful than cash, people will adopt it, not because we told them to, but because it simply works better for them.

While cash remains king and the dominant form of payment, the expenses and burdens associated with its usage are becoming increasingly apparent.

From the production and distribution of physical currency to the costs of handling and securing cash, the financial burden is substantial.

Research has shown that cash-based economies like Nigeria face transaction costs that are 4-10 times higher than those reliant on digital payments.

This results in the loss of millions of dollars each year, funds that could be redirected to more productive uses or invested in vital sectors such as healthcare and education.

These complexities not only hinder the efficiency of transactions, but they also contribute to the growth of an informal economy.

Long queues and frustration at ATM terminals serve as reminders of the limitations of cash, while businesses struggle to manage large sums of money, leaving them vulnerable to theft and errors.

The necessity of transitioning to a cashless society has become increasingly apparent in recent times. Amidst a recent cash crunch accompanied by transaction failures, Verve cards emerged as a crucial lifeline for many Nigerians.

In supermarkets, where physical cash dwindled, Verve transactions facilitated the uninterrupted flow of essential supplies, staving off potential panic.

Street markets, typically bustling with cash exchanges, experienced a notable shift as contactless Verve payments, facilitated through its partnership with Moniepoint, Opay etc, supplanted the chaos brought on by cash scarcity.

The immediate impact on businesses was profound – operations streamlined, financial security ensured, and confidence fostered during uncertain times.

While the cash crunch underscored the limitations of a physical currency-based economy, Verve showcased the transformative potential of cashless transactions, providing a practical and resilient solution in the face of scarcity.

It’s no surprise that partners like Opay and Moniepoint have achieved significant milestones in a short period. While the Verve partnership isn’t the sole factor, its pivotal role cannot be undermined.

Verve cardholders now enjoy a myriad of services, with their Verve cards serving as the gateway to expanded opportunities.

In neighbouring Ghana has made significant progress in reducing its dependence on cash by embracing digital currency.

Nigeria, too, is at a crossroads, deciding whether to cling to the familiarity of cash or embrace the transformative potential of a cashless future.

While cashless alternatives are emerging, uneven ecosystems have hindered widespread adoption. However, Verve, a Nigerian payment card network, is playing a key role in driving the adoption of card-based transactions in the country.

The company’s commitment to providing convenient, secure, and efficient payment solutions has positioned it as a leader in the industry.

Verve offers a safe, affordable, and widely accepted platform that bridges the gap between cash and digital transactions.

The widespread use of Verve cards reflects a growing acceptance of digital transactions, marking a shift away from reliance on cash.

By empowering individuals and businesses to embrace cards, Verve is paving the way for a more inclusive and efficient financial landscape.

The benefits of a cashless society go beyond mere numbers. The enhanced security of digital transactions replaces the vulnerability of cash, which carries a higher risk of theft and fraud.

With each swipe of a card, these risks diminish, and businesses gain greater transparency and control over their finances, allowing for better financial planning and growth.

Transitioning to card-based transactions also has the potential to foster a more secure and transparent payment ecosystem. Cash transactions are often untraceable, contributing to tax evasion and hindering the government’s ability to regulate economic activities. By leaving a digital footprint, every Verve card transaction promotes transparency and accountability, pushing the informal economy into the fold and fostering greater financial inclusion.

While the transition to a cashless Nigeria may have its challenges, card-based transactions offer a transformative solution. Verve’s leadership in the industry, with over 50 million payment cards issued, demonstrates the increasing acceptance of digital payments in the country. By embracing the advantages of card-based transactions, Nigeria can navigate its economic landscape more efficiently, drawing inspiration from Ghana’s successes.

This shift provides a practical way to mitigate security concerns, reduce reliance on cash, and foster a more transparent and secure payment ecosystem.

Through collaborative efforts from the government, financial institutions, technology providers, and strategic partnerships with relevant stakeholders, Nigeria can unlock the vast potential of a cashless economy.

Verve, with its deep understanding of the Nigerian market and commitment to financial inclusion, stands ready to be a catalyst for change.

By embracing the transformative power of cards, not just as plastic rectangles and other forms of payment tokens, but as keys to a more secure, efficient, and prosperous payment ecosystem, Verve can lead Nigeria towards a brighter financial future.