Friday Dec 02, 2022

Global Embedded Finance Markets Report 2022: Lending, Insurance, Payment, and Wealth – PR Newswire

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DUBLIN, March 24, 2022 /PRNewswire/ — The “Global Embedded Finance Business and Investment Opportunities – 50+ KPIs on Embedded Lending, Insurance, Payment, and Wealth Segments – Q1 2022 Update” report has been added to ResearchAndMarkets.com’s offering.

The global Embedded Finance industry is expected to grow by 39.4% on annual basis to reach US$241,018.2 million in 2022.

The embedded finance industry is expected to grow steadily over the forecast period, recording a CAGR of 23.9% during 2022-2029. The embedded finance revenues will increase from US$241,018.2 million in 2022 to reach US$776,731.2 million by 2029.

The Asia Pacific is home to the leading embedded lending providers in the world. The region has been and continues to be a hotspot for some of the most advanced fintech markets globally. Furthermore, the growing number of technological advancements by fintechs has made the Asia Pacific region a world leader in fintech innovations.

Countries such as Australia, India, China, Singapore, Indonesia, and Malaysia recorded strong demand growth for embedded lending options in the previous four to eight quarters. The presence of a large young population in the region is primarily driving the demand and market growth.

In Europe, embedded lending is becoming increasingly popular among consumers due to the rising popularity of the buy now pay later lending model. Consumers are increasingly looking for convenient and innovative payments option for online purchases. BNPL mode of lending is the most popular among consumers due to its affordability and convenience. Some of the key players offering BNPL service include Klarna, PayPal Credit, and Splitit in the region.

Embedded lending is most popular in the United Kingdom compared to other countries in the European region. The United Kingdom is one of the early adopters of embedded lending options for making purchases. Shoppers in the United Kingdom observe retail finance as a convenient way to split the cost of expensive purchases.

The embedded insurance landscape is booming in Europe, and countries like the United Kingdom, Germany, and France have made significant contributions to the region’s embedded insurance business growth.

To remain competitive in the market and to keep pace with the ever-changing customer requirements, insurers in Europe are modifying their business models and working to improve their distribution channels. Furthermore, with the rising number of new entrants in the region, the European embedded insurance market is soaring. Considerable increases in fresh fundraising rounds are propelling the market to new heights.

According to the publisher’s analysis, European insurtech start-ups have surpassed the total capital investment of 2020 by more than US$ 1 billion in the first quarter of the year 2021, with a total of nearly US$ 2 billion invested across more than 50 transactions. Over the next four to eight quarters, rising finance activities are likely to raise embedded insurance demand.

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