According to the publisher, the Embedded Finance industry in Philippines is expected to grow by 47.2% on annual basis to reach US$ 1.94 billion in 2024.
The embedded finance industry is expected to grow steadily over the forecast period, recording a CAGR of 35.0% during 2024-2029. The embedded finance revenues in the country will increase from US$ 1.94 billion in 2024 to reach US$ 8.74 billion by 2029.
The Philippines is witnessing a surge in the adoption of embedded finance, a revolutionary approach integrating financial services seamlessly within non-financial ecosystems. The Philippines boasts a young, tech-savvy population with high smartphone penetration. This, coupled with a large unbanked segment, creates a fertile ground for embedded finance solutions.
Unveiling the Power of Embedded Finance: Traditional financial institutions often struggle to reach the unbanked and underbanked population in the Philippines. Embedded finance bridges this gap by integrating financial tools like payments, loans, and insurance directly into everyday platforms. Convenience and accessibility are driving growth of embedded finance companies in the Philippines.
Key Players of Philippines Embedded Finance Market: The Philippines' embedded finance market is a dynamic space with a mix of established players and innovative startups driving growth.
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.
The embedded finance industry is expected to grow steadily over the forecast period, recording a CAGR of 35.0% during 2024-2029. The embedded finance revenues in the country will increase from US$ 1.94 billion in 2024 to reach US$ 8.74 billion by 2029.
The Philippines is witnessing a surge in the adoption of embedded finance, a revolutionary approach integrating financial services seamlessly within non-financial ecosystems. The Philippines boasts a young, tech-savvy population with high smartphone penetration. This, coupled with a large unbanked segment, creates a fertile ground for embedded finance solutions.
Unveiling the Power of Embedded Finance: Traditional financial institutions often struggle to reach the unbanked and underbanked population in the Philippines. Embedded finance bridges this gap by integrating financial tools like payments, loans, and insurance directly into everyday platforms. Convenience and accessibility are driving growth of embedded finance companies in the Philippines.
Key Drivers of Philippines Embedded Finance Market: Several factors are propelling the Philippines' embedded finance market forward:
- Rising Mobile Adoption: With a high smartphone penetration rate, Filipinos are increasingly comfortable conducting financial transactions through their mobile devices. Embedded finance seamlessly integrates financial services within these familiar platforms, fostering convenience and accessibility. Between 2020 and 2023, the usage of mobiles at point of sale in the Philippines increased significantly.
- Unbanked and Underbanked Population: A significant portion of the Philippine population remains unbanked or underbanked. Embedded finance offers them an alternative entry point into the financial system, bypassing traditional banking channels. Almost 44 to 50% or 34.3 to 36 million Filipino adults remain unbanked as of 2022, as per the Bangko Sentral ng Pilipinas (BSP) - the Country’s central bank. Many of the unbanked live in rural and remote areas and have no access to banking services, such as savings accounts, credit cards, loans, and other forms of digital payments.
- Major Fintechs Boosting Payment Gateway Ecosystem in Philippines: In the Philippines, digital payment gateways have emerged as vital stakeholders, revolutionizing the way individuals, businesses, and institutions manage their finances and transact consistently. Some digital payment gateways in the Philippines, includes D24, Dragonpay, PayMongo, PayMaya, and PesoPay.
- Demand for Financial Services: Filipinos are increasingly seeking financial services like microloans, insurance, and investment options. Embedded finance caters to these needs by offering them within the context of everyday activities, such as online shopping or ride-hailing services.
- Supportive Regulatory Landscape: The Bangko Sentral ng Pilipinas (BSP), the central bank, has adopted a forward-thinking approach to fintech regulation. This fosters innovation and encourages collaboration between traditional financial institutions and fintech players.
Major Deals and Innovation of Philippines Embedded Finance Market:
In Feb 2024, Singapore-based fintech UNOAsia, the primary incorporator of UNO Digital Bank in the Philippines, has raised $32.1 million in a pre-Series B funding round as it inches closer to profitability in 2024. The round brings the total amount raised by the fintech to approximately $75 million, a figure that includes its previously announced $11 million pre-Series A funding, and its largely Creador-backed $33.5 million pre-seed and seed rounds of 2022.Key Players of Philippines Embedded Finance Market: The Philippines' embedded finance market is a dynamic space with a mix of established players and innovative startups driving growth.
Traditional Financial Institutions:
- Banks: Major players like Banco de Oro (BDO), Metrobank, and Land Bank of the Philippines are actively partnering with tech companies to offer embedded financial services within their ecosystems.
- Payment Networks: Leading payment processors like Visa and Mastercard are collaborating with businesses to integrate secure and efficient payment solutions.
FinTech and Technology Companies:
- E-commerce and Ride-hailing Platforms: Companies like Grab and Shopee are integrating financial services like digital wallets and microloans within their platforms.
- Wallet Providers: GCash, PayMaya, and Coins.ph are prominent players offering mobile wallets with embedded financial services like payments, bills payments, and even micro-investing.
- FinTech Startups: A growing number of innovative startups are specializing in specific areas of embedded finance, like LendInvest (lending) and Fuse (insurance).
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 Philippines. Below is a summary of key market segments:Philippines 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
Philippines 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
Philippines 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
Philippines 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
Philippines Embedded Wealth Management Market Size and Forecast
Philippines 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.
Table of Contents
1. About this Report
2. Philippines Embedded Finance Industry Market Size and Forecast
3. Philippines Embedded Finance Industry Market Size and Forecast by End Use Industry
4. Philippines Embedded Finance Industry Market Size and Forecast by Business Model
5. Philippines Embedded Finance Industry Market Size and Forecast by Distribution Model
7. Philippines Embedded Insurance Industry Market Size and Forecast by End Use Industry
8. Philippines Embedded Insurance Industry Market Size and Forecast by Consumer Segment
9. Philippines Embedded Insurance Industry Market Size and Forecast by Type of Offering
10. Philippines Embedded Insurance Industry Market Size and Forecast by Business Model
11. Philippines Embedded Insurance Industry Market Size and Forecast by Distribution Model
12. Philippines Embedded Insurance Industry Market Size and Forecast by Distribution Channel
13. Philippines Embedded Insurance Industry Market Size and Forecast by Type of Insurance
14. Philippines Embedded Insurance Industry Market Size and Forecast by Non-Life Insurance
16. Philippines Embedded Lending Industry Market Size and Forecast by Consumer Segment
17. Philippines Embedded Lending Industry Market Size and Forecast by Business to Business (B2B) Sectors
18. Philippines Embedded Lending Industry Market Size and Forecast by Business to Consumer (B2C) Sectors
19. Philippines Embedded Lending Industry Market Size and Forecast by Type of Lending
20. Philippines Embedded Lending Industry Market Size and Forecast by Business Model
21. Philippines Embedded Lending Industry Market Size and Forecast by Distribution Model
23. Philippines Embedded Payment Industry Market Size and Forecast by End Use Segment
24. Philippines Embedded Payment Industry Market Size and Forecast by Consumer Segment
25. Philippines Embedded Payment Industry Market Size and Forecast by Business Model
26. Philippines Embedded Payment Industry Market Size and Forecast by Distribution Model
29. Philippines Asset Based Finance Industry Market Size and Forecast by Type of Assets
30. Philippines Asset Based Finance Industry Market Size and Forecast by End User
31. Further Reading
Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 130 |
| Published | April 2024 |
| Forecast Period | 2024 - 2029 |
| Estimated Market Value ( USD | $ 1.9 Billion |
| Forecasted Market Value ( USD | $ 8.7 Billion |
| Compound Annual Growth Rate | 35.0% |
| Regions Covered | Philippines |
