EMBEDDED FINANCE MARKET TO EXCEED US$183 BLN GLOBALLY BY 2027 -- JUNIPER RESEARCH

KUALA LUMPUR, Nov 22 (Bernama) -- Revenue from embedded financial services will exceed US$183 billion globally in 2027, increasing from just under US$65 billion in 2022, according to a new Juniper Research study. (US$1=RM4.57)

Juniper said in a statement that the 182 per cent growth from 2022 to 2027 would be largely driven by non-financial businesses incorporating embedded finance options into their product offerings.

“These options will usually be introduced within the checkout process of an e-commerce transaction or incorporated seamlessly within a mobile app, resulting in enhanced financial options for the consumer and potential new revenue streams for vendors,” it said.

The study emphasised that businesses needed to identify which financial services worked best within their customer environment, whether business-to-business (B2B) or consumer.

“Choosing products that align with target demographics and offer genuine consumer benefits will be most successful,” it said.

The study also identified financial services currently less well-saturated within B2B markets, resulting in a significant untapped opportunity for B2B businesses to augment their revenue streams by incorporating embedded finance solutions.

Additionally, the research found that embedded investments, where stock trading and investment products are integrated within other apps, would be the fastest-growing segment.

“It will increase by 421 per cent over the next five years, accounting for almost US$11 billion in revenue globally by 2027.

“Brands serving high-net-worth individuals pursue embedded investment strategies in order to broaden their appeal to premium users,” it added.

Juniper Research provides research and analytical services to the global hi-tech communications sector, providing consultancy, analyst reports, and industry commentary.

-- BERNAMA