Bain and Co - summary below on Embedded Finance (12 Sep 2022)
Financial services embedded into e-commerce and other software platforms accounted for $2.6 trillion, or nearly 5%, of total US financial transactions in 2021, and by 2026 will exceed $7 trillion, our research finds.
Payments and lending will continue to be the largest embedded financial services but will be bolstered by the growth of adjacent value-added services, including insurance, tax, and accounting.
Demand will grow because the “better together” proposition promises to improve customer experiences and financial access, along with providing cost reductions and risk benefits to companies.
Incumbent financial institutions face the threats of shifting economics and adverse selection with this new value chain, but they can also realize tremendous growth if they identify where to play across specific vertical segments…
More interesting stuff about this fintech neighbourhood ..
