Canada Embedded Finance Business and Investment Opportunities Databook – 75+ KPIs on Embedded Lending, Insurance, Payment, and Wealth Segments - Q2 2024 Update

Canada Embedded Finance Business and Investment Opportunities Databook – 75+ KPIs on Embedded Lending, Insurance, Payment, and Wealth Segments - Q2 2024 Update

According to PayNXT360, the embedded finance industry in the country is expected to grow by 11.9% annually to reach US$3,566.9 million in 2024.

The embedded finance industry is expected to grow steadily over the forecast period, recording a CAGR of 24.9% from 2024 to 2029. The country's embedded finance revenues will increase from US$3,566.9 million in 2024 to reach US$10,843.6 million by 2029.

Canada's embedded finance sector has experienced notable growth due to increased partnerships and innovations from financial institutions and fintech companies. Key advancements include personalized lending, integrated banking services, and enhanced payment solutions. The sector will expand further with support from regulatory changes and a focus on financial inclusion, driven by digital platforms and mobile technologies.

Growth in the Embedded Finance Sector

In the last few months, Canada has experienced significant growth in the embedded finance sector due to increased partnerships between financial institutions, fintech companies, and industries like retail, e-commerce, and telecommunications. These partnerships enable the seamless integration of financial services into day-to-day transactions and business operations.

In the next few months, Canada's embedded finance market is set to expand, focusing on embedded lending, insurance, and payment solutions tailored to different sectors. The rise of digital platforms and mobile technologies is expected to drive financial inclusion and innovation in Canada's financial ecosystem.

Key Developments in the Embedded Finance Sector

Product Launches and Innovations

1. Liberis Embedded Finance Platform: Liberis launched its embedded finance platform aimed at small businesses. This platform provides personalized and flexible financing solutions using machine learning and AI-powered analytics. It integrates seamlessly with various business applications to enhance access to funding.
2. RBC's Digital Banking Solutions: Royal Bank of Canada (RBC) introduced new embedded banking features within its digital platforms, allowing users to directly access banking services such as loans and payment solutions through e-commerce sites and mobile applications.
3. Wealthsimple's Integrated Investment Tools: Wealthsimple expanded its offerings by launching embedded investment tools that allow users to manage their investments directly within various partner platforms, making investment services more accessible to a broader audience.
4. Shopify's Payment Solutions: Shopify enhanced its embedded payment processing capabilities, enabling merchants to offer seamless checkout experiences directly within their online stores, thus facilitating easier transactions for customers.

Strategic Partnerships

Visa and Fintech Collaborations: Visa has been actively forming partnerships with various fintech companies to enhance embedded finance solutions. These collaborations focus on integrating payment processing and lending services into non-financial platforms, thereby improving customer experiences and expanding market reach.
RBC and Shopify: Royal Bank of Canada (RBC) partnered with Shopify to provide integrated banking services for merchants using the Shopify platform. This partnership enables Shopify users to access banking solutions directly within their e-commerce operations, streamlining financial transactions.

Wealthsimple and Various Platforms: Wealthsimple has engaged in partnerships with multiple digital platforms to offer embedded investment services. This allows users to manage their investments directly within the applications they already use, making financial management more accessible.
LendingTree and Financial Institutions: LendingTree has formed strategic alliances with various banks and credit unions to enhance their embedded lending capabilities, providing consumers with personalized loan options directly through partner platforms.

Regulatory Changes

1. Open Banking Framework: The Canadian government has been advancing its open banking initiative, which aims to create a secure and standardized framework for the sharing of financial data. This regulatory change is expected to facilitate the growth of embedded finance by allowing consumers to access financial services more seamlessly through various platforms.

2. Consumer Protection Regulations: The Financial Consumer Agency of Canada (FCAC) has continued to emphasize consumer protection measures in the financial sector. This includes ensuring that embedded finance products comply with existing consumer rights and transparency standards, promoting responsible lending and fair treatment of consumers.

3. Anti-Money Laundering (AML) Compliance: The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) has reinforced its regulations regarding anti-money laundering and terrorist financing. As embedded finance solutions expand, companies in this sector must ensure compliance with these regulations to mitigate risks associated with financial crimes.

4. Support for Fintech Innovation: The Canadian government has been actively supporting fintech innovation through various initiatives and funding programs. This includes fostering partnerships between traditional financial institutions and fintech companies to enhance the development and integration of embedded finance solutions.

This report offers a comprehensive, data-centric analysis of the embedded finance industry. It covers lending, insurance, payment, wealth and asset-based finance sectors and provides a detailed breakdown of market opportunities and risks across various sectors. With over 75+ KPIs at the country level, this report ensures a thorough understanding of embedded finance market dynamics, market size, and forecast.

It breaks down market opportunities by type of business model, consumer segment, and distribution model. In addition, it provides detailed information across various segments in each sector of embedded finance. KPI revenue helps in getting an in-depth understanding of end market dynamics.

PayNXT360's 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.

Scope

This report provides in-depth, data-centric analysis of Embedded Finance industry in Canada. Below is a summary of key market segments:

Canada 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

Canada 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

Canada 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

Canada 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

Canada Embedded Wealth Management Market Size and Forecast

Canada 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.