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

Report Description

The embedded finance industry in the region is expected to grow by 10.1% annually to reach US$35.20 billion in 2024.

The embedded finance industry is expected to grow steadily over the forecast period, recording a CAGR of 24.6% from 2024 to 2029. The region embedded finance revenues will increase from US$35.20 billion in 2024 to reach US$105.82 billion by 2029.

Embedded finance has seen significant growth in Europe over the past few months, driven by increasing consumer demand for seamless financial services integrated into everyday platforms. This trend is evident across various sectors, including retail and healthcare, as businesses directly leverage technology to offer services like payments, lending, and insurance within their ecosystems.

Looking ahead, the next few months are expected to bring further advancements, particularly in API technology, which will enhance the integration of financial services and expand access to previously underserved markets, thereby solidifying embedded finance as a standard in the financial landscape.

Key Developments in the Embedded Finance Sector

Product Launches and Innovations

YouLend's Partnership with Booking.com: YouLend has expanded its offerings by partnering with Booking.com to provide financing solutions for hotels, addressing their funding challenges and demonstrating the practical benefits of embedded finance in the hospitality sector.

Flowpay's Seed Funding: The Czech-based embedded finance provider Flowpay raised €2.1 million in March 2024, aiming to enhance its technological capabilities and expand its services for small and medium-sized enterprises (SMEs) across Europe.

Finmid's Emergence from Stealth: Berlin-based Finmid raised €35 million in April 2024 to broaden its reach and enhance its product offerings, particularly in providing tailored financing solutions for various businesses, including restaurants and retailers.

Automakers Integrating Embedded Insurance: Companies like Ford and Jaguar Land Rover have begun integrating insurance policies directly with vehicle purchases or leases, enhancing customer satisfaction and streamlining the buying process.

Strategic Partnerships

1. Liberis and Shop Circle Capital: In April 2024, Liberis partnered with e-commerce software provider Shop Circle Capital to deliver financing solutions specifically aimed at merchants in the UK. This collaboration addresses the funding gap faced by small and medium-sized enterprises (SMEs) and aims to enhance their access to necessary financial resources.

2. Froda and Visma Finance: Also in April 2024, Froda joined forces with Visma Finance to launch a new product focused on invoice loans. This innovative offering allows businesses to automatically pay invoices rather than receiving direct payments, streamlining cash flow management for SMEs.

3. Amazon and ING: Amazon Germany has established a partnership with ING to offer preapproved loans to its SME sellers through a seller portal. This collaboration utilizes Amazon's data to facilitate quick credit decisions, enhancing the financial support available to sellers on the platform.

Mergers and Acquisitions

UniCredit's Acquisition of Vodeno and Aion Bank: UniCredit signed a €370 million agreement to acquire Vodeno and Aion Bank, integrating their cloud-based Banking-as-a-Service (BaaS) platform. This acquisition aims to enhance UniCredit's capabilities to offer embedded financial solutions across Europe, catering to both financial and non-financial companies.

Ant International Acquires MultiSafepay: Ant International acquired the Amsterdam-based payment service provider MultiSafepay, integrating it into its Antom division. This move is designed to enhance payment solutions for SMEs, providing them with access to a wide array of international payment methods.

ThetaRay Acquires Screena: ThetaRay acquired the European screening company Screena, aiming to bolster its AI-driven solutions for detecting financial crime. This acquisition enhances ThetaRay's offerings for banks and fintechs, integrating advanced screening capabilities into its product suite.

Wolters Kluwer Acquires Isabel Group's Accountancy Portfolio: Wolters Kluwer is set to acquire the accountancy portfolio of Belgian FinTech Isabel Group for €325 million. This acquisition will expand Wolters Kluwer’s tax and accounting solutions, enhancing its service offerings in the European market.

Regulatory Changes

EU Open Banking Regulations: The European Union has proposed a regulatory framework comprising three main components: regulations on instant payments, the European Digital Identity Framework, and the next evolution of the core open banking regulation (the Third Payments Services Directive). These regulations aim to facilitate seamless financial transactions and improve digital identity verification, which are crucial for the growth of embedded finance in Europe.

Consumer Duty Regulation in the UK: The UK's Consumer Duty regulation has been highlighted as a significant development. This regulation mandates financial service providers to ensure that consumers understand their products. It emphasizes transparency in pricing and product features, aiming to enhance consumer protection and trust in embedded financial services.

Digital Currency Regulation: Discussions surrounding a potential digital European currency regulation are still in progress. Stakeholders are closely monitoring this development, as it may influence the embedded finance landscape by introducing new digital payment solutions and frameworks for financial transactions.

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 regional insights, along with an in-depth data centric analysis of the Embedded Finance industry in the Asia Pacific, covering 50+ KPIs for each region and country (650+ charts and 500+ tables in all). Below is a summary of key market segments:

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

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

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

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

Embedded Wealth Management Market Size and Forecast

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 (2019-2028).
• 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.
• Get insights at segment level, by the distribution model and by business model in key embedded finance segments
• Insights into the asset based finance market size and by type of assets, by end users.