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

Latin America 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 region is expected to grow by 14.7% annually to reach US$9,811.8 million in 2023.

The embedded finance industry is expected to grow steadily over the forecast period, recording a CAGR of 28.6% from 2024 to 2029. The region embedded finance revenues will increase from US$9,811.8 million in 2024 to reach US$34,503.0 million by 2029.

Embedded finance in Latin America is rapidly advancing, driven by innovations from key players like Mercado Pago, Nubank, and Clip, alongside strategic partnerships and evolving regulatory frameworks. The sector is set for further growth with enhanced API technology, broader financial service integration, and regulatory support paving the way for expanded access and seamless financial solutions.

Growth in the Embedded Finance Sector

Over the past few months, embedded finance has experienced rapid growth in Latin America. This growth is driven by the increasing demand for seamless financial services integrated into various platforms across e-commerce, healthcare, and the gig economy.

Looking ahead, the next few months are expected to bring further advancements, particularly in API technology, which will enhance the integration of financial services and expand access to previously underserved markets, solidifying embedded finance as a standard in the Latin American financial landscape.

Key Developments in the Embedded Finance Sector

Product Launches and Innovations

Nubank's New Credit Features: Nubank introduced new credit features that allow users to manage their finances more effectively within the app. These features include personalized credit limits and instant loan approvals, making it easier for consumers to access financial products without leaving the platform.
Clip's Payment Solutions for SMEs: The Mexican fintech Clip launched new payment solutions designed specifically for small and medium-sized enterprises (SMEs). These solutions integrate payment processing directly into business management tools, facilitating smoother transactions and financial management for business owners.

Strategic Partnerships: Rappi and Bancolombia: Colombian delivery app Rappi has partnered with Bancolombia, the country's largest bank, to offer embedded financial services within its platform. This partnership allows Rappi users to access banking services, including payments and lending, without leaving the app.

Regulatory Changes

1. Open Finance Initiatives: Various countries in Latin America, including Colombia and Mexico, have made strides toward implementing open finance frameworks. Colombia's 2022 open finance decree focuses on Payment Initiation Services (PIS) and plans to introduce Account Information Services (AIS) by 2025. This regulatory environment is designed to enhance competition and innovation in financial services, facilitating the integration of embedded finance solutions.
2. Fintech Regulations in Chile: Chile is advancing its ""Fintech Law,"" which aims to create a comprehensive regulatory framework for financial technology services, including embedded finance. The supporting regulations are expected to be released in mid-2024, promoting a more structured environment for fintech operations and enhancing consumer protection.
3. Real-Time Payment Systems: Countries like Colombia are working on improving their real-time payment systems, which are crucial for the effective functioning of embedded finance. These systems support low-value account-to-account payments and are essential for facilitating quick and seamless transactions within embedded finance frameworks.

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 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 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


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

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

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


Embedded Wealth Management Market Size and Forecast

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.

•Get insights at segment level, by the distribution model and by business model in key embedded finance segments

•Insights into the asset based finance market size and by type of assets, by end users."