Germany 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 6.8% annually to reach US$8.15 billion in 2024.

The embedded finance industry is expected to grow steadily over the forecast period, recording a CAGR of 21.4% from 2024 to 2029. The country's embedded finance revenues will increase from US$8.15 billion in 2024 to reach US$21.51 billion by 2029.

Germany's embedded finance sector has experienced rapid growth due to strategic partnerships, innovative product launches, and supportive regulatory changes. The integration of financial services into everyday activities is enhancing convenience and personalization for consumers, while ongoing adjustments in regulations ensure data privacy and security.

Growth in the Embedded Finance Sector

Over the past few months, Germany has witnessed significant growth in the embedded finance sector, driven by increased partnerships between banks, fintech companies, e-commerce platforms, and other non-financial entities. These collaborations have enabled the seamless integration of financial services into everyday activities, such as shopping, travel, and digital communication.

Key Developments in the Embedded Finance Sector

Product Launches and Innovations

Embedded Insurance Innovations: Numerous startups have introduced new embedded insurance products, capitalizing on the growing insurtech wave. These products are designed to integrate seamlessly into various platforms, offering users tailored insurance solutions based on their specific needs and behaviors.

Frictionless In-App Payment Solutions: There has been a rise in the launch of embedded payment solutions that facilitate smoother in-app transactions. These innovations include one-click payment features in e-commerce and ride-hailing apps, enhancing user experience by making transactions faster and more convenient.

Hyper-Personalized Financial Products: Companies are leveraging data analytics to offer highly personalized financial products, such as microloans recommended at checkout based on individual purchase histories, enhancing the relevance of financial services to consumers.

Strategic Partnerships

Solaris and Samsung Electronics, Grover, Navit: In 2024, Solaris, a leading player in the German banking market, forged unique partnerships with brands such as Samsung Electronics, Grover (a technology rental platform), and Navit (a B2B mobility platform) to launch innovative embedded finance products.

Vodeno and Swan: New generation embedded finance providers like Vodeno and Swan have also been venturing into interesting partnerships in Germany.

Mercedes Benz, Visa and Mastercard: German automaker Mercedes Benz is experimenting with Visa and Mastercard to enable tokenized payments in cars, demonstrating the growing integration of embedded payments in the automotive industry.

Regulatory Changes

Support for Digitalization: The German government continues to promote digitalization across industries, which includes fostering the growth of embedded finance solutions. This initiative aims to integrate financial services into various sectors, enhancing efficiency and accessibility for consumers and businesses alike.

Regulatory Framework Adjustments: There have been ongoing discussions regarding the adaptation of regulatory frameworks to accommodate the rapid growth of embedded finance. This includes considerations for open banking regulations and compliance measures that ensure data security and consumer protection while facilitating innovation.

Focus on Data Privacy and Security: With financial services integrating into non-financial platforms, there's a greater emphasis on data privacy. Regulatory bodies are reinforcing compliance with laws like the General Data Protection Regulation (GDPR) to protect consumer data as embedded finance solutions expand.

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 Germany. Below is a summary of key market segments:

Germany 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

Germany 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

Germany 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

Germany 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

Germany Embedded Wealth Management Market Size and Forecast

Germany 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.