A new report on the global embedded finance industry from Research and Markets, shows the industry is expected to grow by 39.4 per cent on an annual basis in 2023. It is also expected to grow at a compound annual growth rate of 28.5 per cent through 2029.

The report, entitled Global Embedded Finance Business Databook Report 2023: An $862.171 Billion Market by 2029, looks at credit, traditional banking, dedicates one section to Canada and at least six sections to the discussion about embedded insurance.

“Globally, investment in the embedded finance sector has surged significantly as both fintech and banking institutions seek to capitalize on the growing shift toward embedded financial offerings. Digital platforms and businesses are increasingly integrating financial services into their products and services to drive customer loyalty, revenue growth and convenience,” the report’s authors write in a statement announcing its publication. “Private equity and venture capital firms are also foreseeing high growth in the sector.” 

Globally, they note that demand for embedded financial services is growing significantly in travel and tourism as travel rebounds. They also note that by delivering exceptional convenience and digital experiences, fintech firms have taken market share from banking institutions globally too and warns companies to focus on delivering more value to customers.

In looking at insurance, the report segments its market share information by offering, business model, distribution channels, by platform and by industry in non-life offerings. “The report provides global insights into key trends and drivers along with a detailed data centric analysis of market opportunities in embedded finance industry and global and country level,” they write.