How to scale your business with embedded finance? with Christoph Schnettler, co-founder of DoKuMe, and Cyrosch Kalateh,

Embedded finance is a growing trend that has gained traction over
the past decade. It refers to the integration of financial services
into non-financial platforms or businesses. Traditionally,
individuals or businesses would have to go directly to financial
service providers to access services such as banking, payments,
insurance, and collections. However, with embedded finance, these
services are offered within platforms that users already interact
with on a regular basis. One of the key advantages of embedded
finance is its ability to simplify complex payment processes. As
platforms grow in size and complexity, managing payments becomes
more challenging. Embedded finance provides a unified solution for
handling multiple parties, routing payments, and managing
surcharges. This streamlines the payment process and reduces the
burden on platform operators. The first guest, Christoph
Schnettler, co-founder of the platform DoKuMe. DoKuMe is a platform
that provides solutions for associations in the sports industry.
Christoph explains that the platform initially started as a way to
solve the problems faced by the German Judo Federation. Over time,
they expanded their offerings to include various modules such as
training documentation, license management, membership management,
and project management. Today, DoKuMe provides a
platform-as-a-service solution that can be customized for different
organizations. The second guest, Cyrosch Kalateh, co-founder and
CEO of GetPaid, a payment provider, shares his expertise in
embedded finance. Cyrosch's journey in the fintech industry led him
to realize the challenges faced by platforms when it comes to
payments and finance. He highlights the complexity of multi-sided
situations that platforms deal with, as they have business
customers who, in turn, have their own customers. This complexity
requires a tailored end-to-end payments solution, which is what
GetPaid aims to provide. Another point highlighted in the podcast
is the convergence and extension of business models enabled by
embedded finance. The speakers discuss a customer who started as a
wholesaler and then transitioned into a marketplace model. They
explain how embedded finance has allowed this customer to further
extend their business model by embedding payments into their
software service. This demonstrates how embedded finance can
facilitate business model extensions and enable platforms to offer
a wider range of services to their customers. In conclusion, the
podcast highlights the significance of having a strong financial
model and scalability for platforms and marketplaces. It emphasizes
the need to focus on solving relevant problems, iterate quickly,
and get feedback. Additionally, it underscores the importance of
correctly scaling platforms and being conscious of unit economic
costs. By considering these factors, platforms can maximize their
potential for success and drive the embedded finance revolution.
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