Canada Embedded Finance Business and Investment Opportunities Databook - 75+ KPIs on Embedded Lending, Insurance, Payment, and Wealth Segments - Q2 2024 Update

The embedded finance industry in the country is expected to grow by 11.9% annually to reach US$3.56 billion in 2024.

The embedded finance industry is expected to grow steadily over the forecast period, recording a CAGR of 24.9% from 2024 to 2029. The country's embedded finance revenues will increase from US$3.56 billion in 2024 to reach US$10.84 billion by 2029.

Canada's embedded finance sector has experienced notable growth due to increased partnerships and innovations from financial institutions and fintech companies. Key advancements include personalized lending, integrated banking services, and enhanced payment solutions. The sector will expand further with support from regulatory changes and a focus on financial inclusion, driven by digital platforms and mobile technologies.

Growth in the Embedded Finance Sector

In the last few months, Canada has experienced significant growth in the embedded finance sector due to increased partnerships between financial institutions, fintech companies, and industries like retail, e-commerce, and telecommunications. These partnerships enable the seamless integration of financial services into day-to-day transactions and business operations.

In the next few months, Canada's embedded finance market is set to expand, focusing on embedded lending, insurance, and payment solutions tailored to different sectors. The rise of digital platforms and mobile technologies is expected to drive financial inclusion and innovation in Canada's financial ecosystem.

Key Developments in the Embedded Finance Sector

Product Launches and Innovations

1. Liberis Embedded Finance Platform: Liberis launched its embedded finance platform aimed at small businesses. This platform provides personalized and flexible financing solutions using machine learning and AI-powered analytics. It integrates seamlessly with various business applications to enhance access to funding.

2. RBC's Digital Banking Solutions: Royal Bank of Canada (RBC) introduced new embedded banking features within its digital platforms, allowing users to directly access banking services such as loans and payment solutions through e-commerce sites and mobile applications.

3. Wealthsimple's Integrated Investment Tools: Wealthsimple expanded its offerings by launching embedded investment tools that allow users to manage their investments directly within various partner platforms, making investment services more accessible to a broader audience.

4. Shopify's Payment Solutions: Shopify enhanced its embedded payment processing capabilities, enabling merchants to offer seamless checkout experiences directly within their online stores, thus facilitating easier transactions for customers.

Strategic Partnerships

Visa and Fintech Collaborations: Visa has been actively forming partnerships with various fintech companies to enhance embedded finance solutions. These collaborations focus on integrating payment processing and lending services into non-financial platforms, thereby improving customer experiences and expanding market reach.

RBC and Shopify: Royal Bank of Canada (RBC) partnered with Shopify to provide integrated banking services for merchants using the Shopify platform. This partnership enables Shopify users to access banking solutions directly within their e-commerce operations, streamlining financial transactions.

Wealthsimple and Various Platforms: Wealthsimple has engaged in partnerships with multiple digital platforms to offer embedded investment services. This allows users to manage their investments directly within the applications they already use, making financial management more accessible.

LendingTree and Financial Institutions: LendingTree has formed strategic alliances with various banks and credit unions to enhance their embedded lending capabilities, providing consumers with personalized loan options directly through partner platforms.

Regulatory Changes

1. Open Banking Framework: The Canadian government has been advancing its open banking initiative, which aims to create a secure and standardized framework for the sharing of financial data. This regulatory change is expected to facilitate the growth of embedded finance by allowing consumers to access financial services more seamlessly through various platforms.

2. Consumer Protection Regulations: The Financial Consumer Agency of Canada (FCAC) has continued to emphasize consumer protection measures in the financial sector. This includes ensuring that embedded finance products comply with existing consumer rights and transparency standards, promoting responsible lending and fair treatment of consumers.

3. Anti-Money Laundering (AML) Compliance: The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) has reinforced its regulations regarding anti-money laundering and terrorist financing. As embedded finance solutions expand, companies in this sector must ensure compliance with these regulations to mitigate risks associated with financial crimes.

4. Support for Fintech Innovation: The Canadian government has been actively supporting fintech innovation through various initiatives and funding programs. This includes fostering partnerships between traditional financial institutions and fintech companies to enhance the development and integration of embedded finance solutions.

This report offers a comprehensive, data-centric analysis of the embedded finance industry. It covers lending, insurance, payment, wealth and asset-based finance sectors and provides a detailed breakdown of market opportunities and risks across various sectors. With over 75+ KPIs at the country level, this report ensures a thorough understanding of embedded finance market dynamics, market size, and forecast.

It breaks down market opportunities by type of business model, consumer segment, and distribution model. In addition, it provides detailed information across various segments in each sector of embedded finance. KPI revenue helps in getting an in-depth understanding of end market dynamics.

The research methodology is based on industry best practices. Its unbiased analysis leverages a proprietary analytics platform to offer a detailed view of emerging business and investment market opportunities.

Scope

This report provides in-depth, data-centric analysis of Embedded Finance industry in Canada. Below is a summary of key market segments:

Canada Embedded Finance Market Size and Forecast

• Embedded Finance by Key Sectors
• Retail
• Logistics
• Telecommunications
• Manufacturing
• Consumer Health
• Others
• Embedded Finance by Business Model
• Platforms
• Enabler
• Regulatory Entity
• Embedded Finance by Distribution Model
• Own Platforms
• Third Party Platforms

Canada Embedded Insurance Market Size and Forecast

• Embedded Insurance by Industry
• Embedded Insurance in Consumer Products
• Embedded Insurance in Travel & Hospitality
• Embedded Insurance in Automotive
• Embedded Insurance in Healthcare
• Embedded Insurance in Real Estate
• Embedded Insurance in Transport & Logistics
• Embedded Insurance in Others
• Embedded Insurance by Consumer Segments
• B2B
• B2C
• Embedded Insurance by Type of Offering
• Embedded Insurance in Product Segment
• Embedded Insurance in Service Segment

Embedded Insurance by Business Model

• Platforms
• Enabler
• Regulatory Entity
• Embedded Insurance by Distribution Model
• Own Platforms
• Third Party Platforms
• Embedded Insurance by Distribution Channel
• Embedded Sales
• Bancassurance
• Broker’s/IFA’s
• Tied Agents
• Embedded Insurance by Insurance Type
• Embedded Insurance in Life Segment
• Embedded Insurance in Non-Life Segment
• Embedded Insurance in Non-Life Segment
• Motor Vehicle
• Fire and Property
• Accident and Health
• General Liability
• Marine, Aviation and other Transport
• Other

Canada Embedded Lending Market Size and Forecast

• Embedded Lending by Consumer Segments
• Business Lending
• Retail Lending
• Embedded Lending by B2B Sectors
• Embedded Lending in Retail & Consumer Goods
• Embedded Lending in IT & Software Services
• Embedded Lending in Media, Entertainment & Leisure
• Embedded Lending in Manufacturing & Distribution
• Embedded Lending in Real Estate
• Embedded Lending in Other
• Embedded Lending by B2C Sectors
• Embedded Lending in Retail Shopping
• Embedded Lending in Home Improvement
• Embedded Lending in Leisure & Entertainment
• Embedded Lending in Healthcare and Wellness
• Embedded Lending in Other
• Embedded Lending by Type
• BNPL Lending
• POS Lending
• Personal Loans
• Embedded Lending by Business Model
• Platforms
• Enabler
• Regulatory Entity
• Embedded Lending by Distribution Model
• Own Platforms
• Third Party Platforms

Canada Embedded Payment Market Size and Forecast

• Embedded Payment by Consumer Segments
• B2B
• B2C
• Embedded Payment by End-Use Sector
• Embedded Payment in Retail & Consumer Goods
• Embedded Payment in Digital Products & Services
• Embedded Payment in Utility Bill Payment
• Embedded Payment in Travel & Hospitality
• Embedded Payment in Leisure & Entertainment
• Embedded Payment in Health & Wellness
• Embedded Payment in Office Supplies & Equipment
• Embedded Payment in Other
• Embedded Payment by Business Model
• Platforms
• Enabler
• Regulatory Entity
• Embedded Payment by Distribution Model
• Own Platforms
• Third Party Platforms

Canada Embedded Wealth Management Market Size and Forecast

Canada Asset Based Finance Management Industry Market Size and Forecast

• Asset Based Finance by Type of Asset
• Hard Assets
• Soft Assets
• Asset Based Finance by End Users
• SME’s
• Large Enterprises

Reasons to buy

• In-depth Understanding of Embedded Finance Market Dynamics: Understand market opportunities and key trends along with forecast (2020-2029).
• Insights into Opportunity by end-use sectors - Get market dynamics by end-use sectors to assess emerging opportunity across various end-use sectors.
• Develop Market Specific Strategies: Identify growth segments and target specific opportunities to formulate embedded finance strategy; assess market specific key trends, drivers, and risks in the industry.
• Get Sector Insights: Drawing from proprietary survey results, this report identifies opportunities across embedded lending, embedded insurance, embedded finance, and embedded wealth sectors.