Singapore 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 Singapore is expected to grow by 33.5% on annual basis to reach US$ 2.70 billion in 2024.

The embedded finance industry is expected to grow steadily over the forecast period, recording a CAGR of 23.8% during 2024-2029. The embedded finance revenues in the country will increase from US$ 2.70 billion in 2024 to reach US$ 7.85 billion by 2029.

The Singapore embedded finance market is experiencing a period of rapid growth in 2024, driven by a confluence of factors: a tech-savvy population, a supportive regulatory environment, and a booming digital commerce sector.

Market Overview and Growth Drivers: Embedded finance integrates financial services seamlessly within non-financial platforms. This allows businesses to offer financial products like payments, loans, and insurance directly within their user experience. Singapore, with its strong financial infrastructure and focus on innovation, is poised to become a regional leader in embedded finance.

Several key factors are propelling market growth:

• High mobile and internet penetration: Singapore boasts a highly connected population, with smartphone ownership exceeding 80%. This creates a fertile ground for embedded finance solutions accessible through mobile apps and online platforms. Home to an estimated 400 million internet users, Southeast Asia is building on the potential of ground-breaking digital technologies and fast-tracking innovation.
• Supportive regulatory landscape: The Monetary Authority of Singapore (MAS) has adopted a forward-thinking approach to fintech regulation, fostering innovation while maintaining financial stability. Initiatives like the FinTech Regulatory Sandbox allow startups to test their embedded finance solutions in a controlled environment.
• Demand for seamless financial experiences: Consumers increasingly expect a frictionless and integrated experience across all digital touchpoints. Embedded finance caters to this demand by integrating financial services into everyday activities, such as shopping or booking travel.
• Rise of e-commerce and platform-based businesses: The growth of e-commerce platforms and other digital marketplaces creates new opportunities for embedded finance solutions. Businesses can offer financing options like buy-now-pay-later (BNPL) at the point of sale, boosting conversion rates and customer satisfaction.

Major Innovation and Deals of Singapore Embedded Finance Market:

• Singapore as the Embedded Finance Hub: KPMG to launch Singapore’s first Embedded Finance Hub. Embedded Finance Hub aims to accelerate the adoption of embedded finance across Singapore and beyond. With the support of Monetary Authority of Singapore (MAS), the Hub will focus on developing joint capabilities between corporates and financial institutions to create new growth opportunities, centralizing and distribute global knowledge and best practices across all sectors. By embedding finance, businesses are generating revenue from new opportunities, providing better client experiences, and increasing customer retention because of seamlessly integrating financial products and services into their businesses.
• In 2024, Funding Societies, the largest unified SME (small and medium enterprises) digital finance platform in Southeast Asia, announced a strategic partnership with Singapore E-Business (SGeBIZ), a digital procurement, payment and sourcing platform provider, to bring B2B (business-to-business) embedded finance (EmFi) solutions to businesses in Singapore, that will channel Funding Societies' digital financing capabilities via the 'Buy Now, Pay Later' (BNPL) feature offered within the latter's procurement solution, EzyProcure.

Embedded Finance Startups in Singapore: There are 66 Embedded Finance startups in Singapore which include Bolttech, Atome, Decentro, Crayon Data, and MatchMove.

• Bolttech: Insurance as a service solution for businesses and individuals. Connects insurers, distribution partners, and customers to transform the way insurance is bought and sold. Offers coverage for mobile phone insurance, travel insurance, and more. It also offers claims and on-demand servicing. It also offers device repair and valuation services.
• Atome: Online marketplace offering multi-category products on purchase finance. The platform offers solutions for buy now pay later and consumer financing. The product catalog includes beauty, fashion, home decor, babycare, electronics, and more. Its mobile application is available on Android and iOS platforms.
• Decentro: Platform offering open banking API solutions to banks and financial institutions for implementing digital banking. It offers APIs for the management of KYC and onboarding, AML and compliance, digital lending, and online payment processes. It enables banks or financial institutes to build diverse products in banking and lending platforms such as account creation, KYC-onboarding solutions, lending solutions, cards and payment integration, ledger API, and more.
• Crayon Data: Cloud-based analytics solutions for businesses. It is an AI-powered revenue acceleration solution for enterprises across the Banking, Fintech, and Travel industries. The platform provides data cleansing solutions to identify errors and anomalies in the dataset. It enables users to develop new feeds based on real-time data processing. Features include Data as a Service, Recommendation as a Service, Customer Experience as a Service, and Marketplace as a Service.

Key Players Singapore Embedded Finance Market

• Fintech startups: Innovative startups like Funding Societies and Grab Financial Group are driving the growth of B2B and B2C embedded finance solutions.
• Traditional financial institutions: Established banks like DBS Bank and OCBC Bank are partnering with fintech companies to offer embedded finance solutions within their existing customer base.
• Technology companies: Tech giants like Singapore Telecommunications (Singtel) are leveraging their vast user base to offer embedded financial services.

Market Challenges and Considerations: Despite its potential, the Singapore embedded finance market faces certain challenges:

• Regulatory compliance: Navigating the evolving regulatory landscape can be complex for businesses, particularly regarding data privacy and security.
• Data security concerns: Integrating financial services raises concerns about data breaches and fraud. Robust cybersecurity measures are crucial for building trust with consumers.

Collaboration between traditional and new players: Fostering collaboration between established financial institutions and fintech startups is essential for widespread adoption of embedded finance solutions.

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 Singapore. Below is a summary of key market segments:

Singapore 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

Singapore 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

Singapore 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

Singapore 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

Singapore Embedded Wealth Management Market Size and Forecast

Singapore 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.