A new study from Juniper Research has found that revenue from embedded financial services will exceed $183 billion globally in 2027; increasing from just under $65 billion in 2022. Growing by 182% over the period, the report found that this expansion will be largely driven by non-financial businesses incorporating embedded finance options into their product offer.
These options will usually be introduced within the checkout process of an eCommerce transaction or incorporated seamlessly within a mobile app; resulting in enhanced financial options for the consumer and potential new revenue streams for vendors.
The report emphasised that it will be crucial for businesses to identify which financial services work best within their customer environment, whether B2B or consumer. Choosing products that align with target demographics and offer genuine consumer benefits will be the most successful.
Embedded Finance occurs when financial services, such as banking, insurance or lending, are integrated into non-financial user experiences.
The research identified that financial services are currently less well saturated within B2B markets; resulting in a significant untapped opportunity for B2B businesses to augment their revenue streams by incorporating embedded finance solutions.
Research author Dominique Tetnowski explained further: “Bringing the innovations seen within the consumer environment, such as Banking-as-a-Service, to a B2B environment is a powerful, underserved opportunity. Businesses wishing to offer embedded finance must choose the right offerings, that solve genuine challenges targeted specifically at their customers, or they will lose out to better-targeted competitors.”
Additionally, the research found that embedded investments, where stock trading and investment products are integrated within other apps, will be the fastest-growing segment. It will increase by 421% over the next 5 years; accounting for almost $11 billion revenue globally by 2027. It recommends that brands serving high-net-worth individuals pursue embedded investment strategies, in order to broaden their appeal to premium users.
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To find out more, see the new report:
Embedded Finance: Key Trends, Segment Analysis & Market Forecasts 2022-2027
Download the free whitepaper:
Banking 4.0 – „how was the experience for you”
„So many people are coming here to Bucharest, people that I see and interact on linkedin and now I get the change to meet them in person. It was like being to the Football World Cup but this was the World Cup on linkedin in payments and open banking.”
Many more interesting quotes in the video below:
