How Agentic AI Could Transform Embedded Finance by 2025

The Euro Banking Association (EBA) has released a report titled 'Supercharging embedded finance with agentic AI'. It explores how agentic AI can benefit financial institutions in embedded finance. The study highlights opportunities, risks, and key steps for safe adoption. The report identifies over 40 potential use cases for agentic AI in embedded finance. Five were shortlisted for their high value: a cashflow optimiser, a procurement and commerce optimiser, a KYC/KYB onboarding guide, a payment reconciliation assistant, and a product configuration manager. These tools aim to enhance customer experience, streamline operations, and improve risk management.

Agentic AI will operate in three main areas: interfaces, orchestration, and domain expertise. However, its introduction brings new risks and demands significant modernisation efforts. To ensure safe deployment, five critical factors were outlined: real-time API access, full auditability, clear accountability, human oversight checkpoints, and defined decision boundaries.

The EBA also proposes three market priorities for collaboration. These include interoperable data and API standards, cross-industry digital identity frameworks, and ethical principles aligned with the EU AI Act. Following the suggested roadmap could help financial institutions scale agentic AI securely. The report provides a structured approach to integrating agentic AI in embedded finance. It outlines practical use cases, success factors, and collaborative priorities. Financial institutions now have a clearer path to adopt these technologies while managing risks effectively.