Embedded finance: How financial services are seamlessly integrating into educational operations

Driven by technological advancements and the need for more dynamic and effective learning environments, the education sector is undergoing a profound transformation. Traditionally synonymous with via traditional methods of transactions such as via cheque, schools in India are now undergoing a revolutionary transition towards becoming cashless institutions. 

Talking about this shift, Rohit Gajbhiye, MD and Founder of LEO1, says it goes beyond administrative adjustments and signifies a leap in the way education is accessed and managed. "At the forefront of this evolution is the emergence of embedded finance, which seamlessly integrates financial services into educational operations, and propels the transition from traditional transactions to digital, efficient, and secure financial interactions," he says.

"Embedded finance, a groundbreaking concept merging financial services with non-financial platforms, is redefining the user experience for students, parents, and schools across India. Its adoption in schools for promoting cashless transactions yields a plethora of benefits for stakeholders, enhancing convenience, transparency, and financial efficiency. The adoption of embedded finance brings unparalleled convenience for parents by making redundant the need for them to face long queues at school counters. No longer constrained by the need to physically be present for fee payments or other transactions, parents can seamlessly conduct financial interactions through online payment portals, net banking and credit/debit cards on a unified platform," he adds.

The MD and Founder of LEO1 informs that schools benefit from embedded finance by efficiently managing financial interactions, securely processing transactions and maintaining digital records. This results in a transparent and organised financial ecosystem thatnot only aligns with the government's Digital India initiative but also significantly reduces the administrative burden on educational institutions. He opines, "The digital transformation facilitated by embedded stack technology enables schools to maintain accurate and real-time digital records of various transactions. This transition aligns seamlessly with the CBSE's mandate to digitise records, contributing to the broader vision of a digitally empowered education sector."

As schools embrace cashless transactions, he says that students gain valuable insights into financial literacy. Experiencing the practical applications of digital payment systems at a young age exposes them to concepts like budgeting, expense tracking and the importance of secure transactions. According to him, the transition to embedded finance inadvertently becomes a stepping stone for a financial literacy revolution among the younger generation.

While the potential benefits of embedded stacks in education are vast, he feels there persists some challenges that must be addressed. He adds, "These include concerns about privacy, digital equity and the need for comprehensive teacher training. Striking a balance between technology and human interaction is crucial to ensure that the educational experience remains holistic and student-centred."

As we embrace these technological advancements, he says it is essential to navigate the challenges thoughtfully, keeping the focus on providing students with the skills and knowledge they need to thrive in the 21st century. "The transformative power of embedded stacks lies in their ability to reshape education, preparing students for a future where adaptability, critical thinking, and technological literacy are paramount," he sums up saying.