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Financial technology is now entering its third act, marked by a significant shift in how platforms and businesses interact with financial services. The first wave brought democratization, with businesses gaining access to online credit and lending tools aimed at leveling the playing field. The second wave moved these products inside platforms, embedding payments and finance into everyday software workflows. Despite their impact, these steps left business owners managing multiple fragmented systems. Today, platforms are in a race to embed financial services; as of 2021, 73% planned to integrate lending features into their software within two years. The opportunity is huge: Such integrations can increase EBITDA, retention, and user acquisition for platforms. Yet, most current efforts stick to static, product-first solutions rooted in earlier fintech phases. The real transformation is reaching its third actplatforms evolving into true financial operating systems (OS): intelligent, integrated, and predictive. This third act is crucial for end users, who want to manage and resolve their financial challenges directly within the platforms they use daily, without juggling separate systems or applications. ACT I: DIRECT-TO-BUSINESS FINTECHS The first phase of fintech focused squarely on increasing access. Online lenders and challenger banks used bureau data and alternative signals to provide credit and unbundle financial services, making them accessible outside traditional institutions. Capital flowed more freely, yet these assets remained siloed: Businesses had to navigate a separate financial stack from their core operations, consuming valuable time and resources. For fintech providers, reaching customers directly was fraught with acquisition costs and operational hurdles, often making profitability elusive. ACT II: SINGLE EMBEDDED SOLUTIONS The second wave introduced embedded productspayments, lending, accounting, and payrolldirectly into existing platforms. Small and midsize businesses could access financing or manage payroll without leaving the tools they relied on for day-to-day operations. Platforms experienced increased growth and retention, but the integrations were narrow. They often addressed only isolated events in the customer journey, like a loan for payroll, without considering broader impacts on cash flow, vendor payments, or inventory management. Most solutions in this stage felt bolted on rather than truly integrated, providing businesses with options but not holistic or proactive solutions. Many fintechs still operate in this single-product mode, mistaking integration for innovations finish line. ACT III: THE EMBEDDED FINANCIAL OPERATING SYSTEM The third act marks a major leap. Instead of simply adding products, the financial OS embeds finance into the entire user workflowmaking it not just about payments or credit, but intelligence. In practice, these platforms anticipate cash flow gaps before they arise, deliver insights in real time, and proactively match users with the best financial tools or resources when needed. Every interaction adds context and intelligence, going far beyond what static loan products or one-off integrations can offer. AI drives this evolution, analyzing unstructured data, predicting financial needs, and constantly improving the OS with every transaction. This approach doesnt just create stickier platforms; it transforms the core experience by reducing the complexity of financial decision-making. For platforms, fully integrating finance means owning the end-to-end workflow, becoming the trusted system of record and deepening user relationships over time. STAKES FOR PLATFORMS The competition to embed fintech at deeper levels is escalating. Platforms that linger in Act I or II will be overtaken by those embracing the financial OS approach. Users are tired of fragmented dashboards and single-point appsthey want systems that remove friction, automate financial decisions, and free up time for growth. Companies that evolve into a financial OS dont just provide servicesthey become indispensable, earning trust and increasing loyalty as financial intelligence compounds with each interaction. THE NEXT ERA Fintechs evolution is about aligning closer to the workflows that drive real value for businesses and consumers. Act I expanded access; Act II brought capital into software. Now, Act III is defined by intelligence and seamless, proactive integrations. Static tools may address temporary issues, but only platforms powered by AI and a true financial OS will define the future. The next era will belong to those that shift from product-centric models to embedded foresight, enabling businesses and consumers to focus on further unlocking their potential. Luke Voiles is CEO of Pipe.
Category:
E-Commerce
Nothing is certain, least of all employment. It might be more traditional and financially responsible (initially) to be hired on as a full-time employee. But dont be fooled into believing that its more secure. Most U.S. employment is at-will, and given the waves of return-to-office mandates and layoffs over the last year-and-a-half, the longstanding perception that employees are safer if theyre directly employed isnt really justified. It may be easier, but it certainly isnt more stable. And so its no secret that there are talented individuals seeking to break away from that merry-go-round. (I was one of them, a decade-plus ago.) Thats why weve seen a huge uptick in the last five years of employees opting for freelance or flexible work. Yes, it started because of shifting pandemic realities and constraints, but its continued through the Great Resignation as employees stood up and demanded more from their employers. In 2016, a Freelancing in America study found that 55 million Americans, or 35% of the U.S. workforce, was independently employed. Since the pandemic, the freelance economy grew to include an estimated 64 million Americans. Today, its not just the workers benefiting from the flexibility of independent work. A 2024 poll found a 260% jump in freelance overseas contracting from North American companies, signaling that independents are no longer a staffing backup plan for savvy corporations. Smart leaders are leveraging independents to make their workforces more agile as part of their core business strategy. WHAT IT TAKES TO BECOME SUCCESSFULLY INDEPENDENT Thats a lot of opportunity to secure diverse, flexible work as an independent. However, to be truly effectiveand stand out from an increasing pool of freelancerspursuing independent work must be an active, consistent choice that regularly puts your creativity and flexibility on display. Heres how to stand out from the pack. Diverse opportunities: No one asks a musician why they dont only play in one club. No savvy investor would intentionally invest all their money into one stock and its not smart for an established artist to exclusively show in one gallery. Independents should take the same approach by exploring diverse opportunities for gainful client work. Pipeline: A successful independent is proactive by always pursuing a series of contracts, projects, and connections. Landing one contract and sticking with it is not enough. An effective independent knows it takes time to build a pipeline and that work may come in waves, so set up a few retainers, but never stop pitching or networking. The most important KPI in a client relationship isand always will betrust. And that takes time to build. Organization: The ability to keep multiple plates spinning also applies when doing the actual work. With more than one gig comes more than one stakeholder and more than one schedule. You must be organized, remain attentive, and never stop the hustle. Creativity: Expert project management means nothing without a healthy penchant for creativity. The strongest independents are creative problem solvers. They respond to a problem by pausing, asking only necessary questions, and then brainstorming solutions and mirroring those back to their stakeholders. Flexibility: Flexibility is a core expectation of freelance life, but it means more than varied schedules. A truly flexible independent is used to working across diverse teams to complete projects. If scope and specs shift, they flex in tandem, used to the variables which bring change. Because those plates? They can spin at different speeds and different directions, all at once. Self-awareness: Independents are also self-aware. They know what theyre good at, and they know how to sell their skillset, their credentials and their experiencebecause ideally, they never stop doing it. Successful indies dont undersell themselves because they understand that their reputation is not something they should bargain away. Whether a monthly retainer or a one-off project, they know their rates, and they stick to them. They also know that you reap what you sow. Theres a direct correlation between what you get out of something, and what you put into it. Indies know where their value lies. Resilient: Most of all, successful independents are resilient. Freelance work comes with its fair share of rejection. By staying savvy and thick-skinned, independents can not only survive but thrive through job market instability because they accept work when theyre able and hustle the rest of the time. I like to think of things in terms of baseball oddsif you are successful at one-third of your at-bats, youre doing a hell of a job. A TWO-WAY STREET Life as a successful freelancer is a two-way street. Independents understand that the way their work benefits not only them, but the companies that contract with them. Freelance talent enables companies to pull in higher level talent across various degree fields for less than the total cost of full-time employees. Plus, theyre able to invest in and tap talent when they need it, skipping the whole hire/layoff cycle which typically accompanies a challenging economic climate. In the end, everyoneincluding large companiesbenefits from the flexibility of an independent mindset. Justin Tobin is founder and president of Gather.
Category:
E-Commerce
Theres been a seismic shift in the way we shop for fashion. We were once dependent on going in-store to physically browse, touch, and try on endless garments to ensure fit and style. However, e-commerce has introduced a virtual shopping experience eliminating these tactile touchpointsoften the difference between making the purchase or putting it back on the rack. Last year, 2.71 billion people made online purchasesand though shopping for apparel is still predominantly done in-person, 43% of U.S. consumers bought clothing and 33% bought shoes online. More consumers are embracing shopping via online storefronts and the younger, more digitally-savvy generations hold more spending power. Brands are stepping into the new era with technology bridging the gap between consumer preferences and shopping experiences that transcend channelswhether at a brick-and-mortar store, online, or a mix. Forward-looking brands and retailers are already leaning into technology like AI and augmented reality (AR) to create more engaging customer experiences. To remain competitive in a digital-first world, brands must be prepared to follow suit, tackling these hurdles head-on. THE VIRTUAL DRESSING ROOM Despite its popularity, shopping for clothes and shoes online can be a gamble. Is this shirt going to be flattering on me? Can I pull off this leather jacket? Historically, the only way to find out was in-store, but not everyone wants or has the time to leave the house for answers. Retailers like Amazon and Warby Parker introduced at-home try-on programs years ago, but they recently discontinued them. Now, many brands are opting for virtual dressing rooms on their websites or apps, allowing customers to try on products from their own homes and have fun trying out new styles. Virtual try-on (VTO), isnt new. Its long been available in the beauty industry for makeup and skincare, but early fashion applications left much to be desired (e.g., sticker-like filters). Until now, fashion VTO relied on detailed 3D SKUs, digital product representations that can be tried on virtually with AR. More recently, a new VTO generation powered by GenAI is enabling brands to create stunning video and photo-based try-on experiences without needing expensive 3D assets. These hyper-realistic previews deliver 3D realism with social media content creations scalability and ease, giving consumers a dynamic look at how garments move, fit, and feel across websites, in-store displays, and social media. At the 2025 Global Beauty and Fashion AI Forum in New York City, we at Perfect Corp. showcased this innovation for the first time through a virtual fitting room powered by precise generative AI. Attendees could try on fashion week styles from emerging designers Videmus Omnia and The Horse Hub in a hyper-realistic, immersive way. Google Shopping also launched a generative AI try-on tool specifically for dresses, including brands like Anthropologie, Everlane, and H&M. SCALE FASHION INNOVATION WITH GENERATIVE AI Beyond VTO, generative AI enhances online personalization and styling in a more scalable and affordable way. From stylists to digital closets and content creation, brands are exploring use cases far beyond trying on clothes. Its table stakes for brands to better serve their customers and deliver more interactive shopping experiences. According to Google, 81% of retail decision makers feel urgency to adopt generative AI, with 72% saying they are ready to deploy generative AI in the coming year. The beauty of GenAI is that its incredibly versatile, with more applications popping up daily. Generative AI APIs make this innovation more accessible, allowing brands to quickly integrate AI styling, personalization, and virtual try-on into existing platforms without needing to build complex systems from scratch. Notably, GenAI advancements have evolved AI styling from generic product recommendations based on algorithms to always-on personal assistants based on real-time feedbacktaking personalization and customer service to a new level. Many brands have implemented conversational AI agents on their websites for customer support, but smart styling assistants can now recommend full outfits in seconds. For example, global fashion brand Mango recently launched Mango Stylist, for customers to ask style-related questions and receive curated outfit suggestions based on user behavior, body data, and occasion. Digital closets are increasingly popular as well. Similar to Chers virtual closet in Clueless, GenAI can help consumers build, manage, and style digital wardrobes using their own itemswhile also recommending pieces to complete look, with shoppable links for purchasing. Googles Doppl is experimenting with this, and more brands will likely do the same. THE RISE OF SOCIAL SHOPPING Today, shopping isnt just at the store, on a website, or an app. Social commerce is becoming a common channel for consumers to discover new products and buy items directly from social media platforms. Consumers are already scrolling TikTok, Instagram, and Pinterest, and many will go out of their way to look up fashion items from an influencers post. Why not offer them a convenient way to purchase apparel, shoes, and accessories from their feeds? In the U.S., were tracking toward $80 billion in social commerce sales in 2025, accounting for over 17% of all online sales this year. Considering over 5 billion people currently use social media an average of 2.5 hours daily, social commerce is a great opportunity to meet consumers where they areon the For You or Discover pages. By tapping into social commerce, brands and retailers can reach larger and more targeted audiences thanks to ads and influencer marketing, all while creating a more delightful consumer experience, increasing engagement, conversion, and loyalty. Its a no-brainer for brands that want to stay ahead. Some brands are going all-in on social commerce to get closer to their customers. Zras live broadcasts on Chinas Douyin draw millions of viewers, generating significant sales. Zalandos Snapchat integration lets customers try on clothing virtually, expanding reach while keeping engagement high. These tools provide more interactive consumer experiences, while allowing brands to unlock scalable personalization. Fashions future isnt just in-store, online, or on your smartphone. Its everything. Consumers want to shop for fashion blending the in-person physical touchpoints they appreciate, with the digital convenience theyre used to. To deliver this, fashion brands need technologies like AI and AR. Runways still matterbut so do livestreams, digital closets, and virtual fitting rooms. The brands that will win are those successfully embracing AI and other technology to create fresh, consistent, and exciting shopping experiences, seamlessly bringing the best of in-person and online shopping. Alice Chang is CEO and founder of Perfect Corp.
Category:
E-Commerce
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