The May 2023 report defines embedded finance and Banking-as-a-Service (BaaS) as transformative forces in the financial industry, emphasizing clear definitions to avoid confusion. Key ecosystem players include originators (licensed banks), intermediaries (fintech enablers), and adopters (corporations, B2B marketplaces, neobanks). BaaS occurs when adopters act as banks for clients, while embedded banking and finance integrate transactional or interest-bearing products without assuming bank liability. Monetization varies: embedded finance charges end clients directly, while BaaS also generates revenue from compliance services.

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