A new study from Juniper Research has found 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 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.
“Bringing 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.”
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 most successful.
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Embedded Finance occurs when financial services, such as banking, insurance or lending, are integrated into non-financial user experiences.
B2B Embedded Finance – The Next Big Opportunity
The research identified financial services 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 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.”
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Embedded Investments – The Fastest-growing Segment
Additionally, the research found 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 brands serving high-net-worth individuals pursue embedded investment strategies, in order to broaden their appeal to premium users.
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