Europe 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 the region is expected to grow by 32.1% on annual basis to reach US$ 42.24 billion in 2023.

The embedded finance industry is expected to grow steadily over the forecast period, recording a CAGR of 24.6% during 2024-2029. The embedded finance revenues in the region will increase from US$ 42.24 billion in 2024 to reach US$ 126.99 billion by 2029.

The European embedded finance industry is poised for accelerated growth in 2024. New and innovative startups are entering the market to cater to the growing funding demand of SMEs. These firms are also raising funding rounds and entering into strategic collaborations to accelerate growth and expand their regional footprint. Global firms are also entering the regional market to tap into the high-growth market over the next few years.

In Europe, embedded insurance is creating a significant impact in the automotive sector. There is a rising trend of automakers that are blending insurance policies with the purchase or lease of vehicles. Ford and Jaguar Land Rover are among the big giants that have embraced this, recognizing its influence in enhancing customer satisfaction. This trend is projected to continue further over the medium term across the region.

Firms are entering into strategic collaborations to provide financing services to SMEs in Europe

According to the Bank of England, small and medium-sized enterprises (SMEs) are facing an estimated funding gap of £22 billion. To address this, embedded finance providers are entering into strategic partnerships in the United Kingdom.

• Liberis, for instance, partnered with e-commerce software provider Shop Circle Capital in April 2024. The partnership seeks to deliver financing solutions to merchants in the United Kingdom. Alongside the United Kingdom, the service has been launched in the United States too, with plans to expand in more regions going forward in 2024.
• Froda, which has experienced strong growth and increased focus on its embedded finance offerings, also collaborated with Visma Finance in April 2024. Under the partnership, the two firms have launched a new product invoice loan. Unlike traditional business loans, the loan product is designed to automatically pay the invoice and not the customer.

These strategic collaborations and innovative product launches are expected to further drive the competitive landscape in the fast-growing European embedded finance industry over the medium term.

European embedded finance firms raising capital to expand their regional footprint in 2024

The embedded finance industry is poised for accelerated growth over the medium term in Europe. To tap into the high-growth sector, firms are planning to expand their regional footprint and subsequently, raise venture capital and private equity funding in 2024.

Flowpay, a Czech-based embedded finance provider, announced that the firm had raised €2.1 million in its seed funding round in March 2024. The capital round was backed by investors including Techstars, Soulmates Ventures, and DEPO Ventures, among others. The firm is planning to deploy the capital towards expansion in other European markets, while also utilizing the funding for enhancing technological capabilities and offering a range of services to SMEs.

Finmid, the Berlin-based firm, announced that the firm had raised €35 million as it emerged from stealth in April 2024. The capital round was led by Blossom Capital and also included participation from Earlybird VC. Finmid plans to use the capital to broaden its reach into key European markets, enhance its product offerings, and localize the services to meet regional needs. In partnership with Wolt and Safi, the firm provides tailored financing solutions to various businesses, including restaurants and retailers

Alongside regional players, global firms are also eyeing the European embedded finance market. VoPay, for instance, has entered into the United Kingdom amid high growth prospects over the medium term. The publisher expects the trend to continue further across the region in 2024.

European automakers are leveraging embedded insurance to create more value for their customers

In Europe, embedded insurance is creating a significant impact in the automotive sector. There is a rising trend of automakers that are blending insurance policies with the purchase or lease of vehicles. Ford and Jaguar Land Rover are among the big giants that have embraced this, recognizing its influence in enhancing customer satisfaction. Automakers, especially EV providers, are focusing on a digital approach to reach and engage with their customers in the region.

• Fisker, for instance, is offering customers in Austria, Belgium, Denmark, France, Germany, and the Netherlands the option to customize their insurance coverage digitally. Customers can access and sign up for insurance plans that match their specific car models and expected yearly mileage while placing an order.
• Niu, another EV provider, launched a pan-European embedded insurance program in 2023. This solution is designed to help its customers quickly find suitable insurance for their electric mopeds. The insurance program, notably, is omnichannel enabling customers to access the services in their desired way.

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.

This title is a bundled offering, combining the following 17 reports, covering 1200+ tables and 1500+ figures:

1. Europe Embedded Finance Business and Investment Opportunities
2. Austria Embedded Finance Business and Investment Opportunities
3. Belgium Embedded Finance Business and Investment Opportunities
4. Denmark Embedded Finance Business and Investment Opportunities
5. Finland Embedded Finance Business and Investment Opportunities
6. France Embedded Finance Business and Investment Opportunities
7. Germany Embedded Finance Business and Investment Opportunities
8. Greece Embedded Finance Business and Investment Opportunities
9. Ireland Embedded Finance Business and Investment Opportunities
10. Israel Embedded Finance Business and Investment Opportunities
11. Italy Embedded Finance Business and Investment Opportunities
12. Netherlands Embedded Finance Business and Investment Opportunities
13. Poland Embedded Finance Business and Investment Opportunities
14. Russia Embedded Finance Business and Investment Opportunities
15. Spain Embedded Finance Business and Investment Opportunities
16. Switzerland Embedded Finance Business and Investment Opportunities
17. United Kingdom Embedded Finance Business and Investment Opportunities

Scope

This report provides regional insights, along with an in-depth data centric analysis of the Embedded Finance industry in the Asia Pacific, covering 50+ KPIs for each region and country (650+ charts and 500+ tables in all). Below is a summary of key market segments:

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

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

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

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

Embedded Wealth Management Market Size and Forecast

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.