Podcast: Next in Finance (Ep 2: Michael Petrilli x Markus Prommik)

Embedded finance is enabling financial access to millions of micro, small, and medium enterprises (SMEs) across Southeast Asia. Digital platforms can now directly embed lending, insurance, and payment services into their platforms. Embedded finance is changing the landscape of how businesses borrow, transact, and grow.

This shift is more than technological, it’s structural. It’s helping close an SME credit gap estimated at over $200 billion in emerging markets like Indonesia, Thailand, Vietnam, and the Philippines.

In this second episode of ‘Next in Finance’, our host Michael Petrilli, Director of NextGen Investing, sat down with Markus Prommik, CEO and co-founder of Finfra, to discuss how embedded lending infrastructure is reshaping the Southeast Asia’s fintech landscape.

 Episode 2: Shaping the Future of Embedded Finance in Southeast Asia.

Host: Michael Petrilli, Director of NextGen Investing

Guest: Markus Prommik, CEO and Co-Founder, Finfra

Why Embedded Finance Matters in Southeast Asia?

Embedded finance is incorporating credit, insurance, and payments within non-financial digital platforms like from e-commerce marketplaces and ride-hailing apps to point-of-sale (POS) and logistics platforms. SMEs are already relying on these digital platforms to support their business operations.

For Southeast Asia’s rising SME sector, embedded finance delivers:

• Simpler access to credit through digital ecosystems they already use.
• Lower transaction and servicing costs versus traditional banking.
• Quicker approvals powered by alternative data and digital footprints.
• Better integration between daily business operations and financial tools.

In Southeast Asia, over 70% of SMEs are underbanked. Embedded finance is making financial access invisible and inclusive. It is driving entrepreneurship, economic growth, and digital revolution across Southeast Asia.

Embedded Finance vs. Banking-as-a-Service: Two Sides of the Same Coin

There is often a confusion between embedded finance and banking-as-a-service (BaaS).

Same ecosystem. Different roles. Better together

Embedded Finance	Banking-as-a-Service
Adds financial services like payments, lending, or insurance directly into non-financial products and platforms — right where customers already are (e.g., ride-hailing apps, e-commerce checkouts).	Provides the licensed banking infrastructure that powers those financial features — including accounts, cards, KYC, and compliance rails.
Focuses on user experience and distribution — making finance feel “invisible” inside everyday apps. Example: A small business gets a loan right from a POS app like Shopify.	Focuses on compliance, regulation, and connectivity, making it possible for fintechs and platforms to legally offer financial products. Example: A licensed bank or fintech platform provides the API and account setup behind that small business loan feature.
Goal: Make finance faster, simpler, and everywhere	Goal: Make financial innovation safe, scalable, and compliant.

Key Takeaways:

• Embedded Finance Is Changing Financial Access for SMEs in Southeast Asia. This is happening as financial services become integrated into the digital platforms they already use.
• Platform Partnerships Are Reducing the Cost of Credit by 10x by using real-time data from e-commerce, POS tools, and logistics networks. Embedded finance players are also improving how credit is assessed and delivered across the region.
•  Embedded Finance and Banking-as-a-Service (BaaS) are running hand in hand to provide innovative, scalable, and compliant financial solutions. Embedded finance is bringing financial products into everyday apps whereas Banking-as-a-Service (BaaS) provides the regulated infrastructure behind it.
• Compliance-First Innovation Is Important for Long-Term Growth in areas like data security and digital access. In the fintech landscape of Southeast Asia, sustainable growth requires alignment with regulators.
• Collaboration Is Steering the Wheel of Future Fintech to deliver smarter financial experiences. The banks, fintechs, and digital platforms will need to collaborate to combine liquidity, technology, and data.
• The Biggest Growth Opportunities are in SME Credit, Embedded Insurance, and AI: SME credit, embedded insurance, and AI-powered lending are shaping the next frontier of financial inclusion by bridging credit gaps and making finance a natural part of digital life.

Why Embedded Finance is Southeast Asia’s Next Big Fintech Revolution

Embedded finance is no longer a niche it’s becoming the infrastructure of inclusion.
By combining APIs, alternative data, and collaborative partnerships, it’s helping millions of small businesses in Southeast Asia gain access to fair, fast, and flexible financial services.

The future of digital lending infrastructure in Southeast Asia lies in partnerships, APIs, and data. The result is not just a more connected financial ecosystem, but a more empowered one where finance meets people where they already are.

ViewTrade Insight
As financial ecosystems evolve, ViewTrade remains focused on enabling embedded finance solutions that connect markets, data, and digital-first users globally driving the future of accessible, technology-led finance.

Disclaimer: The views and opinions expressed in this podcast are those of the speakers. They do not necessarily reflect the official policy or position of ‘ViewTrade Holding Corporation’. This podcast is intended for informational purposes only and does not constitute financial, legal, or investment advice. Listeners should consult their own advisors before making any financial decisions. ‘ViewTrade’ make no guarantees as to the accuracy or completeness of any information presented. Regulatory requirements and market access capabilities may vary by jurisdiction and are subject to change.