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Embedded lending experiences become seamless with a best-of-breed orchestration stack that unifies KYC, AML, open banking, and audit trails for real-time risk decisions

September 4, 2025 //  by Finnovate

The global market for embedded lending is expected to reach $7.2 trillion by 2030, but traditional compliance systems are facing challenges due to false positives in AML alerts. This can lead to delays, frustrated customers, and extra operational strain. Research shows that 32% of lenders see manual income verification as their biggest bottleneck in risk decisioning, while a quarter say document validation is their single highest cost. A robust orchestration layer with a best-of-breed approach can help reduce false positives and connect all risk and compliance checks to improve the borrower experience. This results in faster decisions, fewer customer drop-offs, and an uninterrupted lending experience. False positives in the KYC process can cause delays while compliance teams review the loan application manually. A pause in this process or within the process of transaction monitoring is more likely to cause a customer to abandon their purchase, leading to missed interest, revenue, and potential new-to-bank customers. Quick KYC and AML decisioning is a key part of the embedded lending compliance process, and regulators are tightening their grip on this issue. An integrated orchestration layer can build smarter, faster compliance directly into the customer experience. Effective AML hinges on piecing together up-to-date data from a web of internal and external sources. Modern orchestration layers typically include money laundering risk scoring modules, API connectivity to multiple vendors, and complete audit trails for compliance. The flexibility of the orchestration layer comes down to the lender’s risk appetite, allowing them to balance effective fraud detection with minimising false positives. An effective orchestration layer not only streamlines AML checks but also stitches together all the critical services required to deliver a seamless, compliant lending and customer onboarding experience.

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Category: Essential Guidance

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