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

Saudi Arabia 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 9.1% annually to reach US$4,807.3 million in 2024.

The embedded finance industry is expected to grow steadily over the forecast period, recording a CAGR of 22.2% from 2024 to 2029. The country's embedded finance revenues will increase from US$4,807.3 million in 2024 to reach US$13,100.4 million by 2029.

The embedded finance sector in Saudi Arabia is undergoing rapid and transformative growth, driven by technological advancements, strategic partnerships, and a supportive regulatory environment. Over the past few months, significant product launches, collaborations, and acquisitions have underscored the sector's momentum, highlighting its potential to enhance financial accessibility and customer experiences. With the government’s push for digital transformation and open banking, the sector is poised for further innovation and expansion, solidifying Saudi Arabia's leadership in the embedded finance space within the MENA region.

As the country continues to align its fintech advancements with Vision 2030, Saudi Arabia is positioning itself as a key financial hub, offering a dynamic ecosystem where fintechs and traditional institutions collaborate to deliver integrated financial solutions. This environment not only fosters competition but also drives financial inclusion, ensuring that more consumers and businesses benefit from cutting-edge financial services. The path ahead for Saudi Arabia’s embedded finance sector appears bright, marked by ongoing innovation and a commitment to digital excellence.

Product Launches and Innovations

Coop Finance+ Launch

In October 2023, additiv supported Coop in launching Coop Finance+, a new app that integrates various financial services, including banking products and individual pension solutions, to improve consumer access to financial products.

Strategic Partnerships

In September 2023, London-based Manigo partnered with Saudi payments solution provider SurePay to launch embedded finance solutions tailored for businesses and consumers. The partnership focuses on integrating Manigo's fintech platform with SurePay's digital payment solutions to foster innovation and improve financial accessibility in the Kingdom.

Finshape and Arab National Bank Alliance

In January 2024, Finshape formed a strategic alliance with Arab National Bank (ANB) to redefine the banking experience through personalized financial solutions. This partnership leverages technology to enhance customer engagement and service delivery.
These collaborations highlight the increasing synergy between fintech companies and traditional financial institutions in Saudi Arabia, aligning with the country's Vision 2030 goals for economic diversification and digital transformation.

Key Merger and Acquisitions

Hyperpay Acquires Sanad Cash

In July 2023, Hyperpay, a leading payment solutions provider, acquired Sanad Cash, a corporate expense management platform. This acquisition enables Hyperpay to broaden its service offerings and position itself as an all-in-one digital platform for businesses.

Cashin Acquires Cardless

In October 2023, Cashin, a payment solutions provider, acquired Cardless, allowing it to offer digital card services through its platform. This move aims to expand Cashin's capabilities in delivering innovative payment solutions.

RasMal Acquires Pentugram

In March 2024, RasMal, a financial services provider, acquired Pentugram, a UAE-based firm, to expand its private capital investment management solutions offerings. This acquisition is part of RasMal's strategy to enhance its service portfolio and cater to broader financial needs.
These acquisitions underscore the dynamic nature of Saudi Arabia's embedded finance sector as companies seek to enhance their capabilities and improve customer offerings through strategic mergers and acquisitions.

Regulatory Changes

Open Banking Framework

The Saudi Central Bank (SAMA) has continued implementing the open banking framework, officially announced in January 2021. This framework is designed to boost competition and innovation in the financial sector by allowing third-party providers to access bank data, facilitating the development of new financial products and services.

Fintech Saudi Initiatives

Fintech Saudi, a joint initiative by SAMA and the Capital Market Authority (CMA), has been actively promoting the growth of the fintech ecosystem. Recent efforts include supporting startups and enhancing regulatory clarity, which fosters innovation in embedded finance.

Regulatory Sandbox Expansion

SAMA has expanded its regulatory sandbox, allowing fintech companies to test new products and services in a controlled environment. This initiative is designed to encourage innovation while ensuring regulatory compliance, thereby supporting the growth of embedded finance solutions.

These regulatory advancements reflect Saudi Arabia's commitment to building a vibrant fintech ecosystem as part of its Vision 2030 goals, positioning the Kingdom as a leading financial hub in the region.

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 Saudi Arabia. Below is a summary of key market segments:

Saudi Arabia 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


Saudi Arabia 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

Saudi Arabia 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

Saudi Arabia 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


Saudi Arabia Embedded Wealth Management Market Size and Forecast

Saudi Arabia 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.