Enfuce and SEB Embedded Collaborate to Drive Embedded Finance Innovation
Enfuce, a fintech company, has joined forces with SEB Embedded, a Swedish banking as a service (BaaS) provider, to deliver a comprehensive virtual and physical card solution tech stack to SEB Embedded’s BaaS customers. This partnership aims to revolutionize the landscape of embedded finance and strengthen collaboration within the industry, as stated in the Finextra article.
Denise Johansson, co-founder and co-CEO of Enfuce, highlighted the significance of this partnership for their company: «It’s taking us quite some time to work with incumbents being a newly founded fintech. So I think this is a great stepping stone for us to show that we’re not here to compete with anyone. We think that it’s all about collaboration and finding the best thing for what you do. I still think there is a big place for the incumbent established banks that they might need to package services in new ways, and that’s what embedded is doing.»
Enfuce’s collaboration with SEB Embedded adds to its growing list of notable partnerships. The company has previously issued Mastercard for social neobank Science Card, secured a contract from the State Treasury of Finland and Kela, and provided embedded payments for Finnish e-commerce platform Starcart.
Johansson emphasized the importance of enabling the future growth of their partners: «You can be a paying customer, but it’s still about more than just bringing the tech and doing whatever you do with it. It is really about enabling their future growth. When they succeed, we succeed. So unless they win, we’re willing them won’t win either. And I don’t think that it’s just getting this is our services use them as you want. And I think that’s we’ve seen quite a lot in the industry. So how we tried to differentiate is really, to be in that together with them.»
Enfuce, founded in 2016 in Finland, holds the distinction of being the first financial service provider to be PCI-DSS certified while operating its services in the public cloud.
Regarding the status of embedded finance in the Nordics, Johansson argued that despite being at the forefront of financial digital development, the region remains loyal to incumbent banks: «Even though the Nordics are very much in the forefront of financial digital development, we are still very loyal to the incumbent banks. We like we haven’t had that many choices to get new and exciting financial devices like apps.» She expressed confidence that this partnership would propel them further in the direction of creating user-centric financial services.
Johansson further stated, «This partnership is a game-changer for banks and non-financial companies in Sweden. Offering card solutions traditionally required major investment, rigorous regulatory obligations, and dependence on slow-moving core legacy systems. With SEB Embedded and Enfuce, clients have a unique opportunity to offer financial services without crossing the line of actually becoming a bank. We take care of BINs, licenses, products, and compliance so that clients can focus on their customers.»
Christoffer Malmer, CEO of SEB Embedded, shared his thoughts on the partnership: «Creating new compelling financial services like BaaS and expanding into new customer segments is exciting but also challenging. SEB Embedded was looking for a provider to help us get new products to market quickly and efficiently, including the extension of Card as a Service within BaaS. Our must-haves for any potential partner included speed and responsiveness, cost efficiency, flexibility, proactivity, and scalability.»
The collaboration between Enfuce and SEB Embedded is set to drive innovation in embedded finance and empower banks and non-financial companies to deliver cutting-edge financial services with ease.