Asia Pacific Embedded Finance Business and Investment Opportunities – 50+ KPIs on Embedded Lending, Insurance, Payment, and Wealth Segments - Q1 2022 Update

Asia Pacific Embedded Finance Business and Investment Opportunities – 50+ KPIs on Embedded Lending, Insurance, Payment, and Wealth Segments - Q1 2022 Update

Report Description

According to PayNXT360’s Q4 2021 Embedded Finance Survey, Embedded Finance industry in the region is expected to grow by 39.7% on annual basis to reach US$108,590.0 million in 2022.

The embedded finance industry is expected to grow steadily over the forecast period, recording a CAGR of 24.4% during 2022-2029. The embedded finance revenues in the region will increase from US$108,590.0 million in 2022 to reach US$357,926.3 million by 2029.

The Asia Pacific is home to the leading embedded lending providers in the world. The region has been and continues to be a hotspot for some of the most advanced FinTech markets globally.

Furthermore, the growing number of technological advancements by fintechs has made the Asia Pacific region a world leader in fintech innovations. Countries such as Australia, India, China, Singapore, Indonesia, and Malaysia recorded strong demand growth for embedded lending options in the previous four to eight quarters. The presence of a large young population in the region is primarily driving the demand and market growth.

PayNXT360 expects that with the rising demand for embedded lending, the region is likely to attract more investment in the short to medium-term perspective.

BNPL providers are combining their expertise to expand their footprint in the Malaysian market

The retail sector is under immense stress due to the extension of movement control order (MCO) in Malaysia. To alleviate these stress levels and drive recovery back in the retail sector, BNPL providers are joining forces in the country. For instance,

• In July 2021, Indian financing and last-mile retail transaction technology provider Pine Labs and Singapore-based BNPL provider Atome entered into a strategic partnership. The partnership is expected to accelerate Malaysian's BNPL acceptance and last-mile retail transaction technology.
• Moreover, with this strategic partnership with Atome, Pine Labs has opened its BNPL service to newer categories.
• On the other hand, through a partnership with Pine Labs, Atome is focusing on enabling a smoother, quicker, and more seamless payment experience for Malaysian consumers across thousands of Point-of-sale checkouts in the country.

The Asia Pacific is the largest embedded insurance market. The region is home to one-third of the world's population and one of the world's fastest-growing economies. The most significant number of insurtech firms are emerging in China and India. This is primarily due to a large uninsured population and the strong growth of the fintech industry.

Insurers and insurtech firms are widely experimenting with new insurance offerings, distribution models, and technological advancements resulting in innovations. In the recent four to eight quarters, there has been a significant increase in the number of funds raised by market players in the embedded insurance ecosystem.

Additionally, substantial growth in digitization in emerging countries such as Indonesia, Malaysia, Thailand, India is attracting the attention of market players. However, the number of technology companies trying to underwrite and sell policies will be limited in the region due to regulatory restrictions on issuing carrier licenses.

Insurers are making strategic investments in insurtech firms to expand their digital distribution channels

Leading insurance companies are planning to expand their operations across the globe, taking advantage of the tremendous growth opportunity that exists in the global embedded insurance industry. For instance,

• In September 2021, Singapore-based insurance provider Sompo Holdings (Asia) Pte. Ltd. (Sompo Asia) made an investment in Cover Genius, a United States-based insurtech firm and embedded insurance company.
• This is a strategic move by Sompo Holdings to expand its distribution channels in the embedded insurance market by leveraging Cover Genius' global network.
• Cover Genius has many e-commerce platforms as partners in multiple industries, including Booking Holdings, Skyscanner, Ola, Intuit, Shopee, and other well-known leading brands, across the globe.
• According to Sompo Holdings, the company is planning to utilize Cover Genius’s client network to embed its insurance products and enhance distribution channels.
• Conversely, Cover Genius will utilize the support from Sompo Holdings to expand its global insurance distribution platform.

The Asia Pacific is home to half of the world's internet users, with a median age of only 30 years old. The manner in which these digitally aware customers pay for products and services is critical to their whole digital experience. As a result, Asia has become a testing ground for embedded payment innovation.

Foreign players are launching new solutions to expand their foothold in Japan

The Covid-19 pandemic has hastened the expansion of the e-commerce sector in Japan, and as more Japanese people embrace online buying, electronic payments are becoming increasingly popular. With the growing demand for seamless payment options in Japan, the competition is growing intense among market players to provide an enhanced customer experience. Moreover, market players are launching new products to acquire more clients in Japan and tap the attractive opportunity. For instance,

• In May 2021, Dutch-based payment platform provider Adyen launched a new solution to expand its procurement capabilities in Japan. This new launch followed the launch of Adyen's local acquisition capabilities in Australia, New Zealand, Hong Kong, Malaysia, and Singapore.
• This announcement expands Adyen's local acquisition capabilities in Asia-Pacific. This new launch is fueled by growing demand from international and domestic merchants to serve Japanese buyers better.

This report provides regional insights into key trends and drivers along with a detailed data centric analysis of market opportunities in embedded finance industry at regional and country level. Region and countries included in this report are:

1. Asia Pacific
2. Australia
3. Bangladesh
4. China
5. India
6. Indonesia
7. Japan
8. Malaysia
9. South Korea
10. Philippines
11. Singapore
12. Taiwan
13. Thailand
14. Vietnam

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 Lending Market Size and Forecast

• Embedded Lending by Consumer Segments, 2020 – 2029
-- Business Lending
-- Retail Lending

• Embedded Lending by B2B Sectors, 2020 – 2029
-- 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, 2020 – 2029
-- 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 Insurance Market Size and Forecast

• Embedded Insurance by Industry, 2020 – 2029
-- 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 Insurance Type, 2020 – 2029
-- Embedded Insurance in Life Segment
-- Embedded Insurance in Non-Life Segment

• Embedded Insurance by Type of Offering, 2020 – 2029
-- Embedded Insurance in Product Segment
-- Embedded Insurance in Service Segment

Embedded Payment Market Size and Forecast

• Embedded Payment by Consumer Segments, 2020 – 2029
-- B2B
-- B2C

• Embedded Payment by End-Use Sector, 2020 – 2029
-- 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 Wealth Management Market Size and Forecast

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.