How Agentic AI Could Revolutionize Embedded Finance by 2025

The Euro Banking Association (EBA) has released a new report on the role of agentic AI in embedded finance. Titled 'Supercharging embedded finance with agentic AI', it explores how this technology can benefit financial institutions by improving customer experience, automating operations, and adapting risk management. The report highlights three key areas where agentic AI will operate: interfaces, orchestration, and domain expertise. It also identifies over 40 potential use cases, with five shortlisted for high impact: cashflow optimisation, procurement optimisation, KYC/KYB onboarding, payment reconciliation, and product configuration.

To ensure safe deployment, the EBA outlines five critical success factors. These include real-time API access, full auditability, clear accountability, human oversight checkpoints, and defined decision boundaries. The report also stresses the importance of a 'human in command' principle to build trust among employees, customers, and regulators.

At a broader market level, the EBA calls for collaboration on three priorities. These are interoperable data and API standards, cross-industry digital identity frameworks, and ethical and safety principles aligned with the EU AI Act. Implementing these measures can help scale embedded finance safely. Introducing agentic AI brings both opportunities and challenges. Financial institutions will need to address new risks and undertake significant modernisation efforts. Following the proposed roadmap can help ensure a secure and effective rollout.