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  • Writer's pictureOliver Lane

Riding the Wave of Embedded Investing

The concept of Embedded Investing has been steadily gaining popularity in the financial world, a trend reaffirmed by Exploding Trends' recent blog highlighting its increasing prominence in Google search queries. In this article, we will delve into the intricacies of Embedded Investing, a phenomenon that is reshaping traditional investment practices and making them more accessible to a broader audience.

Embedded investing, at its core, revolves around the integration of investment opportunities into everyday consumer experiences. This entails identifying and capitalising on investment options seamlessly woven into routine activities, ranging from app usage to e-commerce transactions and even social media engagement. The underlying principle is to transform mundane actions into avenues for financial growth.

Consider the popular apps that round up your daily purchases to the nearest pound and subsequently invest the leftover change on your behalf. This practical application of embedded investing transforms casual transactions into a means of wealth accumulation, essentially turning everyday life into an investment strategy.

The appeal of embedded investing lies not only in its convenience but also in its democratising effect on finance. It erases the need for specialised knowledge or professional guidance, offering an accessible entry point for individuals seeking to venture into the world of investments. In a few taps on your smartphone, you can initiate the creation of a diversified portfolio, eliminating the barriers that have traditionally deterred many from participating in the financial markets.

Our friends at Monzo recently launched an embedded investing feature that allows customers to invest in a variety of funds managed by BlackRock. The feature is available to all Monzo customers in the UK and allows them to invest with as little as £1.

Monzo charges a flat fee of 0.59% on customers' investments, which comprises a 0.14% fund fee and 0.45% platform fee to provide the service.

The launch of Monzo's embedded investing feature is a significant move for the company, as it marks its first foray into the financial investment market. The company has said that it plans to offer more investment products in the future, and the embedded investing feature is seen as a way to make investing more accessible and affordable for its customers.

Some of the key features include:

  • Low minimum investment: Customers can invest with as little as £1.

  • Wide range of funds: Customers can choose from a variety of funds managed by BlackRock, including funds that track the stock market, bonds, and other asset classes.

  • Flexible access: Customers can amend, cancel, or withdraw their investments at any time.

  • Low fees: Monzo charges a flat fee of 0.59% on customers' investments.

So what?

Embedded Investing signifies a transformative shift in financial engagement, making the process of investing an integral part of daily life. Embedded Investing represents a promising frontier in finance, one that amalgamates accessibility, convenience, and a measure of excitement into the realm of investments.

Here's to the evolving landscape of finance and the opportunities it presents!

To find out more about the world of Embedding Investing and the best products exploring this trend across the market, get in touch with Behind Login.

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