Finance
How Embedded Finance Is Quietly Transforming Startup Business Models
By Arthur Azizov
The rise of embedded finance is a direct response to what consumers have been demanding for years: simplicity and speed. With the arrival of the iPhone and the explosion of internet service came a new standard — the ability to access and pay for almost anything from a single device.
Embedded finance is the natural evolution of that shift, which meets users exactly where they are and turns everyday platforms into financial ecosystems. It has already evolved from just a niche innovation to a fundamental pillar in the digital economy — especially for startups. It’s now not only about payments or banking integrations, but reimagining entire business models and creating new revenue streams that didn’t exist before.
However, for traditional banks, it’s difficult to keep up with this trend. Why? What are consumers truly expecting?
What’s driving adoption?
At the heart of embedded finance’s explosive growth is one simple factor: convenience. If you think back to the pre-digital era, paying bills meant standing in lines, dealing with paperwork and visiting physical branches. It was slow and frustrating. The digital revolution changed all that. Now, consumers want to pay, borrow, invest and insure directly within the apps they already use. You tap a screen and it’s done — that’s the benchmark.
The numbers speak volumes. According to Bain & Co. and Bain Capital, revenue from embedded finance platforms and infrastructure providers is expected to grow from $21 billion in 2021 to $51 billion in 2026. Transaction volume? Forecast to hit $7 trillion, representing 10% of all U.S. financial transactions.
Another major driver is the technological leap. Ten years ago, integrating with banks required massive IT teams and multimonth roadmaps. Today, startups can plug into financial services via Open APIs in days as there are platforms such as Stripe and Revolut. These tools dramatically lower both the cost and complexity of integrating financial features.
But perhaps the biggest motivation? Revenue. For nonfinancial companies, embedded finance is more than just a value-added feature — it’s also a key monetization mechanism. Platforms can now earn a percentage of every transaction while boosting customer stickiness. Take Shopify: nearly half its revenue comes not from subscriptions but from financial services like payments and loans. It’s a win-win that startups are eager to tap into.
Are traditional banks keeping up?
Here’s where the picture becomes more complicated. Most traditional banks still operate on legacy systems from the 1980s. Migrating to modern, API-friendly infrastructure is not only extremely costly but also operationally painful. Just imagine that you have 30,000 employees, or even 10,000, and you need to migrate everything to a new platform. Also, your entire database infrastructure is legacy, your processes are legacy — it’s difficult to digitalize all these.
To compete, some, let’s say, “Tier 1” banks are pouring billions into implementing Open API. But many “Tier 2” and long-established banks are simply falling behind. Leadership is often aging, regulatory requirements are rigid, and cybersecurity standards (as there are many to adhere to) make innovation harder. Many still require in-person visits for simple tasks or run core services on outdated systems like voice trading. This leaves them struggling to keep pace with fintech players that offer a smoother and smarter experience by design.
Changing customer expectations
It’s no longer enough to offer a checking account or a credit card. Users now need “super apps” — platforms that combine multiple financial (and nonfinancial) services in one seamless interface. With modern digital banks you can clearly see where your money is, how much you’ve earned or lost, and the exact exchange rates applied. Then you log into a traditional bank (this is a real-world example) and they tell you, “We’ll get back to you with the FX rate for converting dollars to euros.” You wait for an email, and it feels like you’ve stepped into a time machine.
Banks don’t necessarily have to build everything themselves; partnerships are a viable path. But the key is ensuring that the entire experience happens within a single application. So, those who will manage to create a marketplace inside their application or on the website will go ahead, the rest will not, losing both market share and revenue.
Arthur Azizov is founder and investor at B2 Ventures, a private fintech alliance encompassing a portfolio of financial and technology projects, including B2Broker and B2BinPay. A serial entrepreneur with over a decade of experience, he has been at the forefront of financial technology innovation, transforming liquidity, trading and payment services.
Illustration: Dom Guzman
Stay up to date with recent funding rounds, acquisitions, and more with the
Crunchbase Daily.
Written by Jitendra Parashar at The Motley Fool Canada
Dividend investing can be one of the simplest ways to build long-term wealth while creating a steady stream of passive income. But in my opinion, a good dividend stock is about much more than just a high yield. Beyond dividend yield, investors should also look for companies with durable businesses, reliable cash flows, and a history of rewarding shareholders consistently over time.
That’s exactly why many investors turn to financial stocks. Banks and asset managers often generate recurring earnings through lending, investing, and wealth management activities, allowing them to support stable dividend payments even during uncertain market conditions.
Two Canadian financial stocks that stand out right now are AGF Management (TSX:AGF.B) and Toronto-Dominion Bank (TSX:TD). Both companies offer attractive dividends backed by solid financial performance and long-term growth strategies. In this article, I’ll explain why these two financial stocks could be worth considering for income-focused investors right now.
AGF Management stock continues to reward shareholders
AGF Management is a Toronto-based asset manager with businesses across investments, private markets, and wealth management. Through these divisions, the company offers equity, fixed income, alternative, and multi-asset investment strategies to retail, institutional, and private wealth clients.
Following a 59% rally over the last 12 months, AGF stock currently trades at $16.67 per share with a market cap of roughly $1.1 billion. At current levels, the stock offers a quarterly dividend yield of 3.3%.
One reason behind AGF’s strong recent performance is its increasingly diversified business model. The company has expanded its investment capabilities and broadened its geographic reach, helping it perform well across varying market environments.
In the first quarter of its fiscal 2026 (ended in February), AGF posted free cash flow of $36 million, up 14% year over year (YoY), driven mainly by higher management, advisory, and administration fees. These fees climbed to $92.5 million as demand for the company’s investment offerings strengthened.
AGF has also been focusing on expanding its alternative investment business and introducing new investment products. With strong cash generation and growing demand for alternative investments, AGF Management looks well-positioned to continue rewarding investors over the long term.
TD Bank stock remains a dependable dividend giant
Toronto-Dominion Bank, or TD Bank, is one of North America’s largest banks, serving millions of customers through its Canadian banking, U.S. retail banking, wealth management and insurance, and wholesale banking operations.
Finance
Martha Aguirre, former El Paso ISD interim superintendent, resigns as CFO as district finds ‘key financial challenges’
El Paso Independent School District Chief Financial Officer Martha Aguirre, who served as interim superintendent last year, resigned this week as the district said it had discovered “key financial challenges.”
The district issued a news release late Thursday afternoon that lacked details but indicated that a recent review had raised questions about the district’s fund balances, a key indicator of financial health.
“Through this process, key financial challenges were identified that must be addressed prior to closing out the 2025-26 school year including a current budget shortfall that is being actively addressed ahead of the district’s final financial presentation to the Board of Trustees in June,” the news release said.
A CFO is charged with developing a school district’s budget and overseeing its finance department. The EPISD Board of Trustees must adopt a budget for the 2026-27 school year by the end of the fiscal year June 30. The operating budget for the current school year is $547 million.
EPISD Deputy Superintendent David Bates will oversee the budget while the district searches for an interim and permanent CFO, district officials said in a statement.
EPISD Board President Leah Hanany said trustees were notified about Aguirre’s resignation this week. She said the district plans to give the public more information on the current year’s budget during a board meeting later this month.
“The board was also notified of a potential budget shortfall for the 2025 budget, but we don’t have final numbers yet. My understanding is that we are still primed to pass a balanced budget for fiscal year 2026-27 in June,” Hanany said in a statement.
Aguirre could not be reached for comment. EPISD’s CFO makes $148,200 to $209,900 a year, according to the district’s administrative pay plan.
She served as EPISD’s interim superintendent from June to December 2025 after the district’s former superintendent, Diana Sayavedra, resigned under pressure from the board. She returned to her position as CFO when Brian Lusk was hired as EPISD’s new permanent superintendent.
Aguirre’s resignation comes amid an uncertain budget season after a state funding calculation error tied to school property tax breaks caused EPISD to lose out on $17 million in projected revenue. In late April, EPISD officials estimated it would cause the district’s spending to exceed its revenue next year by $10 million.
The district is also considering calling for a bond election in November to upgrade its aging campuses as part of the larger 2024 Destination District Redesign initiative to close schools and improve the ones that remain open.
El Paso Teachers’ Association President Norma De La Rosa said Aguirre’s departure was unexpected.
“We’re right in the middle of the committee meetings for a possible bond and getting ready to get that budget to the June board meeting for next school year. So, to say that I’m highly surprised is an understatement,” De La Rosa told El Paso Matters.
Aguirre started working with the district in 1996 as a general clerk, according to a video published by the district.
-
Lifestyle55 seconds agoHunting For Lexapro Clocks, Viagra Neckties and Other Vintage Pharmaceutical Merch
-
Technology13 minutes agoDyson’s powerful 360 Vis Nav robovac is down to $279.99 for a limited time
-
World19 minutes agoAs Trump forces NATO to pay up, alliance races to close military gap with US
-
Politics25 minutes agoInside the US military playbook to cripple Iran if nuclear talks collapse
-
Health31 minutes agoFitness expert visits gyms nationwide, shouts out 4 clubs for ‘getting it right’
-
Sports37 minutes ago2026 INDYCAR Odds: Alex Palou Clear Favorite for Sonsio Grand Prix at IMS
-
Technology43 minutes agoGlobal scam crackdown leads to 276 arrests
-
Business49 minutes agoDisney’s ABC challenges FCC, escalating fight over free speech