Priya Patel
TLDR:
- Embedded finance has been a game-changer for SMEs, providing access to funding from traditional banks.
- Providers of embedded finance solutions must navigate data privacy risks and regulations to ensure customer protection.
Embedded finance has revolutionized the way SMEs access financial services, bridging the gap between traditional banks and small businesses. As the embedded finance market continues to grow, providers must be regulation-savvy to navigate data privacy risks and ensure customer protection. Alexis Alexander, chief legal and compliance officer at Liberis, explores how companies can employ a considered approach to data privacy in the embedded finance environment.
Embedded finance presents numerous opportunities for businesses, allowing them to scale quickly and provide innovative services. However, with these opportunities come risks, particularly in the realm of data privacy. Providers must prioritize cybersecurity and data protection policies to safeguard sensitive customer data. Additionally, legal and compliance teams must be actively involved in product development to ensure regulatory compliance.
Providers should focus on building secure-by-design infrastructure and leveraging AI and machine learning technologies to enhance security measures. By staying informed about regulations and investing in technology solutions, embedded finance providers can mitigate data privacy risks and protect their customers from potential threats.
