Embedded Banking Market Projected to Surge to $110.7 Billion by 2032: A Seamless Integration Revolution

NEW CASTLE, WILMINGTON, UNITED STATES, March 14, 2024 /EINPresswire.com/ — Allied Market Research published a report, titled, “Embedded Banking Market by Type (Payment Processing, Lending, Contactless Payment, Wealth Management and Others), Industry Vertical (Retail and E-commerce, Transport and Logistics, Healthcare Media and Entertainment, and Others): Global Opportunity Analysis and Industry Forecast, 2022–2032. According to the report, the global embedded banking industry generated $13.6 billion in 2022 and is anticipated to generate $110.7 billion by 2032, witnessing a CAGR of 23.6% from 2023 to 2032.

𝐃𝐨𝐰𝐧𝐥𝐨𝐚𝐝 𝐑𝐞𝐬𝐞𝐚𝐫𝐜𝐡 𝐑𝐞𝐩𝐨𝐫𝐭 𝐒𝐚𝐦𝐩𝐥𝐞 & 𝐓𝐎𝐂 : https://www.alliedmarketresearch.com/request-sample/A283373

With the emergence of banking as a service (BaaS) platform, non-banking organizations may now include embedded banking services in their products and services, opening up new revenue opportunities and clients. Furthermore, embedded banking has become more popular as financial services become more digital and companies want to provide their clients with integrated, seamless financial solutions.

Determinants of Growth

As industries undergo digital transformation, there is a growth in demand for embedded banking solutions to integrate financial services seamlessly into various digital platforms and processes. Businesses across sectors have adopted embedded banking to enhance customer experiences and operational efficiency. Furthermore, the continued innovation within the fintech sector contributes significantly to the growth of embedded banking. Fintech companies are at the forefront of developing technologies and solutions that embed banking services into non-financial platforms, creating new opportunities and disrupting traditional banking models. Moreover, embedded banking plays a crucial role in promoting financial inclusion by reaching underserved and unbanked populations. The demand for inclusive financial services, especially in emerging markets, has driven the adoption of embedded banking solutions to provide easy access to banking services.

The COVID-19 had a moderate impact on the embedded banking market growth, the need for embedded banking services surged as a result of the pandemic’s acceleration of the use of digital banking solutions. This was especially true as more companies and customers looked for online and contactless banking solutions. However, the financial difficulties resulting from the pandemic in certain areas would have limited the capital accessible for investments in embedded banking solutions.

The payment processing segment to maintain its leadership status throughout the forecast period

On the basis of type, the payment processing segment held the highest market share in 2022, accounting for more than one-third of the global embedded banking market revenue. This can be attributed to the increase in demand for seamless and integrated financial transactions within various digital platforms, including e-commerce, retail, and mobile applications. Embedded banking solutions, with a focus on efficient payment processing, cater to the growth in need for frictionless payment experiences, driving widespread adoption across industries. However, the wealth management segment is projected to manifest the fastest CAGR of 27.0% from 2023 to 2032, this is attributed to the fact that the growth in demand for integrated financial services, personalized investment solutions, and seamless wealth management tools within digital platforms. Embedded banking caters to this need, offering a holistic approach to financial management and investment services, driving its prominence in the market.

The retail and e-commerce embedded banking segment to maintain its leadership status throughout the forecast period

Based on industry vertical, retail and e-commerce segment held the highest market share in 2022, accounting for more than two-fifths of the global embedded banking market revenue and is estimated to maintain its leadership status throughout the forecast period. This is attributed to the widespread adoption of digital transactions, the need for seamless payment processing, and the integration of banking services within online shopping platforms, enhancing the overall customer experience. However, the healthcare segment is projected to manifest the fastest CAGR of 27.4% from 2023 to 2032, this is attributed to increase in focus of the industry on digital transformation, demand for streamlined financial processes in patient care, and the integration of banking services to enhance the overall healthcare financial ecosystem.

𝐑𝐞𝐪𝐮𝐞𝐬𝐭 𝐂𝐮𝐬𝐭𝐨𝐦𝐢𝐳𝐚𝐭𝐢𝐨𝐧 𝐖𝐞 𝐎𝐟𝐟𝐞𝐫 𝐂𝐮𝐬𝐭𝐨𝐦𝐢𝐳𝐞𝐝 𝐑𝐞𝐩𝐨𝐫𝐭 𝐚𝐬 𝐏𝐞𝐫 𝐘𝐨𝐮𝐫 𝐑𝐞𝐪𝐮𝐢𝐫𝐞𝐦𝐞𝐧𝐭: https://www.alliedmarketresearch.com/request-for-customization/A283373

North America to maintain its dominance by 2032

On the basis of region, North America held the highest market share in terms of revenue in 2022, accounting for more than one-third of the global embedded banking market revenue. This is attributed to advanced fintech infrastructure, widespread digital adoption, and a proactive shift toward embedded financial services, driven by the tech-savvy consumers and innovative financial institutions of this region. However, the Asia-Pacific region is expected to witness the fastest CAGR of 26.8% from 2023 to 2032 and is expected to dominate the market during the forecast period, owing to a rapidly growing digital economy, increased smartphone penetration, and a strong emphasis on financial inclusion, driving widespread adoption of integrated banking services across diverse sectors.

Leading market players: –

Cybrid Inc.
EdgeVerve Systems Limited
Finastra
Fiserv, Inc.
Lendflow
Moshpit Technologies, Inc.
PayPal
PAYRIX
Stripe, Inc.
Zopa Bank Limited

The report provides a detailed analysis of these key players in the global embedded banking market. These players have adopted different strategies such as expansion and product launches to increase their market share and maintain dominant shares in different regions. The report is valuable in highlighting business performance, operating segments, product portfolio, and strategic moves of market players to showcase the competitive scenario.

𝐈𝐧𝐪𝐮𝐢𝐫𝐞 𝐁𝐞𝐟𝐨𝐫𝐞 𝐁𝐮𝐲𝐢𝐧𝐠: https://www.alliedmarketresearch.com/purchase-enquiry/A283373

Report Review:

Embedded banking is a financial services framework that integrates and prioritizes the needs of the consumer by seamlessly integrating banking and financial products with non-banking platforms and apps. This concept makes financial management and transactions more accessible, easy, and efficient by integrating banking services into daily living. Furthermore, embedded banking fundamentally depends on Application Programming Interfaces (APIs) to link traditional banks or financial institutions with a variety of third-party platforms, such as e-commerce websites, mobile apps, and even internet of things (IoT) devices. These APIs allow real-time access to banking services including loans, financial transfers, account management, payments, and more without requiring users to exit the platform or app they are now using. Moreover, the concept of embedded banking has gained considerable momentum in recent times, mostly due to the increase in need for customized and quick financial encounters. It removes the barrier to offering a wider range of financial services for companies, fintech startups, and other non-banking organizations without requiring them to obtain a full bank license.

The rise in trend of banking as a service (BaaS) is a significant driver of the growth of the embedded banking market. BaaS makes it possible for non-banking organizations to easily incorporate banking services into their products, including fintech firms, e-commerce sites, and even conventional enterprises. Furthermore, digitalization in banking sector has driven the demand for the embedded banking market. However, lack of digital literacy in emerging countries has hampered the growth of the embedded banking market Many people in rural areas may not be familiar with or at ease with digital banking services and applications. As a result, they may not be aware of the advantages and security precautions of online banking, and they may only have irregular access to computers, smartphones, and the internet. Moreover, security and data privacy are major factors that hamper the growth of the embedded banking market. On the contrary, diversified revenue streams for non-banking entities are an opportunity for the embedded banking market as by incorporating banking services into their platforms, they enable companies to make more money through fees, commissions, or interest on financial transactions. This ultimately drives the expansion of the embedded banking market by allowing businesses to monetize their user base, improve their overall business model, and increase profitability.

The embedded banking market is segmented on the basis of type, industry vertical and region. On the basis of type, the market is segmented into payment processing, lending, contactless payment, wealth management and others. On the basis of industry vertical, it is bifurcated into retail and e-commerce, transportation and logistics, healthcare, media and entertainment, and others. On the basis of region, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

𝐀𝐜𝐜𝐞𝐬𝐬 𝐀𝐕𝐄𝐍𝐔𝐄 – 𝐀 𝐒𝐮𝐛𝐬𝐜𝐫𝐢𝐩𝐭𝐢𝐨𝐧-𝐁𝐚𝐬𝐞𝐝 𝐋𝐢𝐛𝐫𝐚𝐫𝐲 (𝐏𝐫𝐞𝐦𝐢𝐮𝐦 𝐎𝐧-𝐃𝐞𝐦𝐚𝐧𝐝, 𝐒𝐮𝐛𝐬𝐜𝐫𝐢𝐩𝐭𝐢𝐨𝐧-𝐁𝐚𝐬𝐞𝐝 𝐏𝐫𝐢𝐜𝐢𝐧𝐠 𝐌𝐨𝐝𝐞𝐥) @ https://bit.ly/3ULFjLi

The market players operating in the network equipment market are Cybrid Inc., EdgeVerve Systems Limited, Finastra, Fiserv, Inc., Lendflow, Moshpit Technologies, Inc., PayPal, PAYRIX, Stripe, Inc., Zopa Bank Limited. These major players have adopted various key development strategies such as business expansion, new product launches, and partnerships, which help to drive the growth of the network equipment market globally. For instance, in February 2022, PAYRIX was acquired by FIS to expand e-commerce, embedded payments, and finance experiences for SMB merchants via platforms. This acquisition is consistent with the aim of FIS of expanding its e-commerce products to businesses of all sizes and industries by embedding payment capabilities within software-as-a-service (SaaS) platforms. Moreover, it is anticipated to also allow FIS to leverage the value of its extensive solution portfolio by providing embedded financial capabilities to small and medium-sized businesses (SMBs) in addition to its e-commerce solutions.

𝐓𝐨𝐩 𝐓𝐫𝐞𝐧𝐝𝐢𝐧𝐠 𝐑𝐞𝐩𝐨𝐫𝐭𝐬:

Peer to Peer Lending Market
https://www.alliedmarketresearch.com/peer-to-peer-lending-market

Australia and Canada Travel Insurance Market
https://www.alliedmarketresearch.com/australia-and-canada-travel-insurance-market-A267105

Loan Origination Software Market
https://www.alliedmarketresearch.com/loan-origination-software-market-A15124

IoT Insurance Market https://www.alliedmarketresearch.com/iot-insurance-market-A09784

Fintech as a Service Market
https://www.alliedmarketresearch.com/fintech-as-a-service-faas-market-A132423

Healthcare Finance Solutions Market
https://www.alliedmarketresearch.com/healthcare-finance-solutions-market-A185583

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