When disaster strikes, whether in the form of a natural catastrophe, economic downturn, or a global pandemic, one of the most critical challenges is getting financial aid to those in need fast. The traditional banking system, with its paperwork, processing delays, and accessibility issues, often falls short in these high-stakes moments. That’s where embedded finance is stepping in to transform crisis payments, ensuring that funds reach victims, small businesses, and struggling families in record time.
The Challenge of Crisis Payments
Embedded finance integrates financial services directly into non-financial platforms, allowing money to flow seamlessly where and when it’s needed. During crises, this means aid can be distributed through digital wallets, mobile apps, and fintech platforms in ways that bypass traditional banking barriers.
In the UK, Starling Bank played a pivotal role in crisis payments during the COVID-19 pandemic. Through its embedded finance capabilities, Starling facilitated the rapid distribution of government-backed loans to small businesses via its Bounce Back Loan Scheme (BBLS). Many traditional banks faced delays in processing loan applications, but Starling’s tech-first approach allowed businesses to apply and receive funds within hours, providing crucial financial support at a time of extreme need.
Starling also introduced its Connected Card, a secondary debit card linked to a primary account, allowing vulnerable individuals to give trusted family members access to funds for essential shopping while maintaining financial security.
Embedded Finance to the Rescue
In an emergency, time is of the essence. Governments, NGOs, and corporations rush to distribute funds, but conventional financial systems introduce bottlenecks. Bank account requirements, identity verification, cross-border remittances, and the need for physical access to financial institutions can slow the process or even make it impossible for those in dire need to receive help.
Across Europe, neobanks like Revolut and Monzo have stepped up to provide rapid financial assistance to refugees and displaced individuals. For example, during the Ukraine crisis, Revolut allowed Ukrainian refugees to open accounts without requiring proof of a UK address, enabling them to access financial services, receive emergency funds, and make payments without barriers. These neobanks, leveraging embedded finance, ensured that displaced individuals could receive financial aid from NGOs and relatives abroad, offering stability in times of uncertainty. These pivotal moments demonstrate that embedded finance isn’t just for mundane tasks but is a lifesaver when chaos ensues.
Fintech company Solaris has also taken the initiative by collaborating with partners like IDnow to provide secure, fully digital onboarding processes, including video identification and legally compliant eSigning solutions. This ensures that aid recipients can access necessary funds promptly without the need for physical documentation
A World Without Personal Finance Crises
As embedded finance continues to evolve, crisis payments will become even more efficient and inclusive. There are a few trends to look out for shaping the future. Decentralised finance, for example, is enabling instant payouts through blockchain-based technology, which can predict when financial aid is needed and can identify critical incidents that alert banks. As a result, consumer protection becomes bullet-proof, and fraud is reduced. Furthermore, AI-powered platforms can go a step further and automate fund distribution to those at the highest risk
Embedded finance is reframing our approach to crises; it is doing the thinking for us, and its swift action means that billions are being saved from potential fraud and cyber-attacks. By eliminating the traditional barriers such as lengthy investigation times, that cause friction and disintegrate customer trust, companies are now increasing their reliability and delivering a seamless journey.
As technology continues to advance, embedded finance will play an even greater role in making crisis payments more accessible, transparent, and immediate—bringing hope when it’s needed most.
Philipp Buschmann, Co-Founder and CEO at AAZZUR
Philipp Buschmann is co-founder and CEO at AAZZUR, a one-stop shop for smart embedded finance experience. Recognised as a rising star in the FinTech space, AAZZUR’s mission is to build profitable banking whilst at the same time empowering consumers to have access to better-informed financial choices.
Philipp is a serial entrepreneur with extensive experience of working in Challenger Banking, Financial Services, IT and Energy across the world.
Having started as a developer in Financial Services, Philipp has first-hand experience of the banking revolution from both a technology and financial perspective. His interest in behavioural economics helped inspire AAZZUR’s revolutionary work on customer centricity in banking.
Philipp holds an MBA from the London Business School. He is passionate about entrepreneurship and loves exchanging ideas, insights and discussing FinTech’s future. He has spoken at major Fintech events including Money 20/20, MoneyLive, Finovate, Fintech Matters, and the Future of Retail Banking.
In Collaboration with Philipp Buschmann, co-founder and CEO of AAZZUR
