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

Latin America 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 47.8% on annual basis to reach US$7,495.9 million in 2022.

The embedded finance industry is expected to grow steadily over the forecast period, recording a CAGR of 28.1% during 2022-2029. The embedded finance revenues in the region will increase from US$7,495.9 million in 2022 to reach US$28,735.7 million by 2029.

In Latin America, embedded lending is in its nascent stages of development; however, it promises to transform the financial industry by accelerating collaboration between banks, FinTech, and big tech firms. The trend of embedded lending along with other services is growing in the region and is expected to see an industry push for strategic alliances over the next four to eight quarters.

Notably, the emergence of embedded lending has already brought cross-sector collaboration in Asia, Europe, and the United States. Now, Latin America is poised to follow suit and give rise to a banking system that is available anywhere and at any time. The goal of delivering products and services with a strong user experience and minimal friction is expected to lead to more and more cross-sector strategic alliances in Latin America over the next few quarters.

In several cross-sector strategic collaborations will be fruitful for the growth of the embedded lending industry. For instance, banks have a wealth of financial products; however, they still struggle with their technologies and interfaces. On the other hand, FinTech and non-financial technology companies are quite creative when it comes to customer engagement; however, they often face challenges in delivering financial services. For all these reasons, PayNXT360 expects strategic collaborations to remain key for the embedded lending market growth in Latin America.

Latin America has seen a significant increase in the number of start-ups in the financial and insurance industries in the last few quarters. Despite the continuous growth of insurtech firms in the region, Latin America's insurtech investment lags far behind other major global geographies, such as the North America, Europe, and China.

However, governments of various countries in Latin America have introduced improved regulations and frameworks. For instance, in 2020 Brazilian government launched a regulatory sandbox for a selected group of insurance companies, supervised by the Brazil Insurance Superintendent (SUSEP). The regulatory sandbox is expected to spur insurance market innovation.

Insurtech firms in Latin America are increasingly investing in innovations and inventing new business models for traditional incumbents. Moreover, Latin America has the fastest growing e-commerce market, pushed further by the Covid-19 pandemic. This growth presents a huge development opportunity for market players to embed insurance products in online e-commerce platforms.

The Latin American embedded payment industry is going through a trial phase, and incumbents in the payments market ecosystem must evolve to stay relevant in the industry, as the everchanging demand from clients is making the current system outdated.

Established and new-age fintech companies have invested heavily in embedded payment solutions in the last four to six quarters, resulting in market growth. Moreover, customers are increasingly expecting e-commerce platforms to provide a smooth buying experience. Embedded payment is the solution to this ever-growing client requirements. This also allows the companies to provide value-added benefits to clients and increase loyalty. Consequently, PayNXT360 expects strong market growth over the next four to eight quarters.

The embedded payment market in big economies such as Brazil is still in the nascent growth stage. However, Brazil's huge population offers massive potential for the growth of the embedded payments market. Furthermore, growing investments in the market are expected to result in the evolution of the embedded payments market in the next four to eight quarters.

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. Latin America
2. Argentina
3. Brazil
4. Colombia
5. Mexico

Scope

This report provides regional insights, along with an in-depth data centric analysis of the Embedded Finance industry in Latin America, covering 50+ KPIs for each region and country (190+ charts and 150+ 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.