Taiwan Embedded Finance Business and Investment Opportunities Databook - 75+ KPIs on Embedded Lending, Insurance, Payment, and Wealth Segments - Q1 2024 Update

According to the publisher, the Embedded Finance industry in Taiwan is expected to grow by 35.1% on annual basis to reach US$ 1.63 billion in 2024.

The embedded finance industry is expected to grow steadily over the forecast period, recording a CAGR of 25.1% during 2024-2029. The embedded finance revenues in the country will increase from US$ 1.63 billion in 2024 to reach US$ 5.00 billion by 2029.

Market Drivers of Taiwan Embedded Finance Market:

• High smartphone penetration and tech adoption: Taiwan boasts a high smartphone penetration rate and a population comfortable with digital solutions, creating a prime environment for mobile-first embedded finance. According to Taiwan's National Communications Commission (NCC), the smartphone penetration rate in Taiwan reached 88.4% in the first quarter of 2024.
• Government support: The Taiwanese government actively promotes financial technology (fintech) innovation, including embedded finance, to enhance financial inclusion and economic competitiveness. The Taiwanese government launched the 'Financial Technology Development and Innovation Sandbox' initiative in 2018, providing a regulatory sandbox environment for fintech startups to test and pilot innovative solutions, including embedded finance.
• Rise of e-commerce and on-demand services: The rapid growth of e-commerce and on-demand services like food delivery necessitates seamless payment and financial solutions, fostering embedded finance adoption.
• Open Banking regulations: The implementation of Open Banking regulations enables secure data sharing between financial institutions and fintech companies, facilitating collaboration and innovation in embedded finance. The Financial Supervisory Commission (FSC) of Taiwan implemented the first phase of Open Banking regulations in 2022, allowing consumers to share their financial data securely with authorized third-party providers.

Key Trends of Taiwan Embedded Finance Market:

• Focus on B2B embedded finance: Embedded finance solutions are increasingly targeting businesses, offering features like automated invoice payments, supply chain financing, and embedded lending for small and medium enterprises (SMEs).
• Integration with AI and Big Data: Artificial Intelligence (AI) and Big Data are being used to personalize financial offerings within embedded finance platforms. This allows for risk assessment, fraud detection, and tailored financial products based on user behaviour.
• Regulatory focus on security and privacy: As the market evolves, regulations around data security and consumer privacy become paramount. Ensuring a robust regulatory framework will be crucial for building trust and fostering long-term growth.
• Emergence of new players: Alongside established players, new fintech startups are entering the market, offering specialized embedded finance solutions for specific industries.

Major Deals and Innovation of Taiwan Embedded Finance Market:

• Line Pay (2023): Messaging platform Line Pay partnered with a leading Taiwanese e-commerce platform to offer BNPL (Buy Now, Pay Later) options within the e-commerce platform, streamlining the online shopping experience with embedded financing.
• Fubon Bank (2024): Fubon Bank collaborated with a ride-hailing service to provide embedded insurance within the ride-hailing app, allowing users to purchase trip cancellation or personal accident insurance during the booking process.

Competitive Landscape: The competition in Taiwan's embedded finance market is multifaceted, with established players like banks and telecom companies collaborating with fintech startups. Global tech giants are also eyeing the market, offering embedded finance solutions alongside their core services. The competitive landscape is constantly evolving, with new entrants and strategic partnerships reshaping the market dynamics.

Traditional Banks:

• Fubon Bank: A leading Taiwanese bank offering embedded finance solutions like co-branded credit cards with e-commerce platforms and in-app investment options.
• CTBC Bank: Another prominent player, CTBC Bank is collaborating with fintech companies to provide embedded lending and BNPL solutions for its customers.

Telecommunication Companies:

• Chunghwa Telecom: Taiwan's largest telecom operator, Chunghwa Telecom leverages its extensive user base to offer embedded payment solutions and explore partnerships with fintech startups for broader financial services.
• Taiwan Mobile: Another major telecom player, Taiwan Mobile is integrating financial services within its mobile wallet platform, enabling payments, micro-investments, and potential future embedded finance offerings.

Fintech Startups:

• Zi Orange Payment: A leading Taiwanese fintech company providing comprehensive embedded finance solutions for businesses, including payment processing, BNPL options, and loyalty programs.
• WeSure: Specializing in B2B embedded finance, WeSure offers solutions like automated invoice payments and supply chain financing, streamlining financial processes for businesses.

This report provides a detailed data-centric analysis of the embedded finance industry, covering lending, insurance, payment, wealth and asset based finance sectors market opportunities and risks across a range of different sectors. With over 75+ KPIs at the country level, this report provides a comprehensive understanding of embedded finance market dynamics, market size and forecast.

It breaks down market opportunities by type of business model, consumer segment, and distribution models. In addition, it also provides detailed information across a range of different segment in each sector of embedded finance. KPI revenue help 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 Taiwan. Below is a summary of key market segments:

Taiwan 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

Taiwan 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

Taiwan 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

Taiwan 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

Taiwan Embedded Wealth Management Market Size and Forecast

Taiwan 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 (2019-2028).
• 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.
• Get insights at segment level, by the distribution model and by business model in key embedded finance segments
• Insights into the asset based finance market size and by type of assets, by end users.