Embedded Banking Market: Global Industry Analysis, Size, Share, Growth, Trends And Forecast 2022-2032

 According to the embedded banking market analysis carried out by Future Market Insights (FMI), the demand in the market will grow at a noteworthy CAGR of around 22.1% from 2022-2032. The report states that the market is expected to reach the valuation of US$ 14.5 Bn by end of 2022.

As per Future Market Insights, by lowering the barriers to entry for various products and services, embedded finance has already begun to streamline financial processes in both consumer and business commerce.

The integration of financial services or tools – traditionally obtained through a bank – within the products or services of a non-financial organization is known as embedded finance.

Previously, people had to go to a bank practically to get a loan, or a business buyer had to spend hours filling out paperwork to get trade credit. These services are now easily accessible at the point of purchase.

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Another persuasive factor for investing in embedded banking is the potential for extra income. In comparison to registering independent software, technology companies can assist users in increasing revenue by more than 5X by adding embedded services to existing services.

Exchanges, loans, and other FinTech features generate more revenue. As a result, an increasing number of FinTech businesses are establishing because they see significant growth opportunities ahead. To generate new revenue streams, various FinTech companies take advantage of brand strength, distribution potential, and existing close customer relationships.

“Personalizing offers for small and mid-sized organizations is currently expensive for banks due to legacy technology, outdated business models, and manual processes. However, the expanding financial ecosystem for small and mid-sized organizations offers a variety of opportunities for new businesses to meet their needs, as well as for banks to introduce their services via embedded baking platforms,” says an FMI analyst.  

Key Takeaways:

  • By solution, the embedded banking platform API segment is estimated to grow at a robust CAGR of 0% through 2032.
  • Based on organizations, sales in the large organizations segment is anticipated to grow at a CAGR of 1% over the forecast period.
  • Demand in the U.S. is expected to increase at a CAGR of around 9% through 2032.
  • Embedded banking market in China is estimated to grow at a substantial CAGR of 8% in the forecast period. The country is anticipated to record an absolute opportunity of ~US$ 11.5 Bn over the forecast period.

Competition Landscape

Bankable, Banxware, Bond, Cross River, Finix, Flywire, Marqeta, MX, OpenPayd, Plaid, Q2, Railsbank, Synapse, Tink, and UNIPaaS Payments Technologies are some of the leading players operating in the global embedded banking market.

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More Valuable Insights on Embedded Banking Market

Future Market Insight’s report on the embedded banking industry research is segmented into four major sections – solution (embedded banking platform API and services (payment processing, lending, contactless payment, card issuing, bank transfer, and others)), organization size (small and mid-sized organizations, and large organizations), end-user (banks, FinTech corporations, investment firms, and others) and region (North America, Latin America, Europe, East Asia, South Asia & Pacific, and the Middle East & Africa), to help readers understand and evaluate lucrative opportunities in the embedded banking demand outlook.

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