New Delhi, Jan. 1 -- Embedded finance has the potential to emerge as a cornerstone of India's next phase of financial sector innovation and inclusion, helping democratise access to formal financial services, reduce transaction costs, and deliver personalised solutions at scale, according to a report by global think tank Observer Research Foundation (ORF).

The report highlighted that embedded finance stands at the vanguard of India's evolving digital financial ecosystem and is transforming how individuals and businesses engage with financial systems.

It stated "embedded finance has the potential to democratise access to formal financial services, reduce transaction costs, and deliver personalised solutions at scale".

By leveraging the w...