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

United Kingdom 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 6.3% annually to reach US$6,474.8 million in 2024.

The embedded finance industry is expected to grow steadily over the forecast period, recording a CAGR of 19.5% from 2024 to 2029. The country's embedded finance revenues will increase from US$6,474.8 million in 2024 to reach US$15,771.3 million by 2029.

The embedded finance sector in the UK is thriving, driven by technological advances, evolving consumer expectations, and regulatory support. Recent innovations and strategic partnerships highlight the sector’s dynamic growth, particularly in payments, lending, insurance, and wealth management. With ongoing regulatory changes and increased oversight, the industry is poised for continued expansion, enhancing financial integration across various platforms and improving consumer access to tailored financial services.

Growth in the Embedded Finance Sector

The embedded finance sector in the United Kingdom has grown substantially over the past half-year, driven by increasing consumer demand for integrated financial services in everyday applications. Segments such as embedded payments, lending, and insurance have expanded as businesses seek to enhance customer experience and engagement.

The ongoing trend will persist for the next few months as more businesses enter the market and established entities enhance their services. This growth is largely driven by technological progress, evolving consumer expectations, and regulatory advancements facilitating the integration of financial services into non-financial platforms, instilling confidence in the future of the financial services market.

Key Developments in the Embedded Finance Sector

Product Launches and Innovations

Klarna customers can now ""save now, pay later"" with new balance and cashback features, allowing them to store money, add funds from their bank account, and receive cashback rewards for shopping in the Klarna app.

Embedded Lending Solutions Fintechs have introduced new APIs and platforms enabling businesses to easily embed lending into customer journeys. Companies like Liberis and iwoca now offer embedded business loans and cash advances, allowing SMEs to access financing directly through their banking or accounting software.

Embedded Insurance Startups like Wrisk and Zego have launched embedded insurance products for consumers and gig workers. Wrisk's ""insurance passport"" allows users to manage all their insurance policies in one app. At the same time, Zego offers flexible insurance for delivery drivers and couriers that can be paused or adjusted as needed.

Embedded Wealth Management Robo-advisors like Nutmeg and Moneyfarm have partnered with digital banks and investment platforms to provide automated wealth management services. For example, Nutmeg powers the investment offering for Chase UK, allowing customers to invest directly through the bank's mobile app.

Strategic Partnerships

Lloyds Banking Group Joins Open Property Data Association

In February 2024, Lloyds Banking Group announced its partnership with the Open Property Data Association. This collaboration promotes the adoption of open banking standards in the property sector, enabling seamless data sharing and improved financial services for homebuyers and investors.
Volt and Bumper Partner for Open Banking in UK and Europe

In February 2024, Volt partnered with Bumper to provide Open Banking solutions to major car dealerships in the UK and Europe. This partnership aims to streamline the car buying process by integrating financial services directly into the dealership experience.

Moneyhub Named CCS's Open Banking Dynamic Purchasing System Framework Provider

Also in February 2024, Moneyhub was named a supplier on the Crown Commercial Service's (CCS) Open Banking Dynamic Purchasing System framework for local government. This partnership allows Moneyhub to offer its Open Banking services to public sector organizations, enabling them to leverage financial data for improved decision-making and service delivery.

Yapily and Uncapped Partner to Accelerate Secure Financial Support for Businesses

In February 2024, Yapily and Uncapped announced their partnership to provide secure financial support for businesses in the EU, UK, and US. By integrating Yapily's Open Banking platform, Uncapped aims to streamline the process of accessing growth capital for SMEs.

Mergers and Acquisitions

Chetwood Financial Acquires CHL Mortgages

In May 2024, UK digital bank Chetwood Financial acquired buy-to-let mortgage lender CHL Mortgages for Intermediaries (CMI) from Barossa Asset Purchaser Sarl. This move will enable Chetwood to grow its mortgage loan book and expand its reach within the mortgage intermediary market.

CUBE Acquires Thomson Reuters Regulatory Intelligence and Oden Products

In May 2024, CUBE, an Automated Regulatory Intelligence (ARI) and Regulatory Change Management (RCM) specialist announced its acquisition of the Thomson Reuters Regulatory Intelligence and Oden products and businesses. This acquisition expands CUBE's global customer base to approximately 1,000 customers across regulated industries.

HPS Agrees to Acquire CR2

In May 2024, HPS, a global provider of payment software and solutions, agreed to acquire CR2, a digital banking and payments software company in Ireland. CR2 is known for its innovative digital banking and payment solutions, powering 90+ banks across more than 50 countries.

FE fundinfo Acquires Dericon

Also in May 2024, FE fundinfo, a financial data company, announced the acquisition of Dericon, a FinTech in Germany's wealth management industry. This partnership will enable FE fundinfo's clients to have direct access to one of the largest distribution channels for asset managers in Germany while growing the company's capabilities in the region.

Regulatory Changes

Consumer Duty Regulation The UK's Consumer Duty regulation has been a significant focus to ensure transparency and fairness in financial services. This regulation requires fintech companies to communicate their offerings and ensure that consumers understand the products they engage with. The Consumer Duty is expected to shape how embedded finance products are designed and marketed, emphasizing consumer protection and responsible lending practices.

Financial Conduct Authority (FCA) Scrutiny The FCA has heightened oversight of embedded finance providers to ensure consumer protection standards, which poses challenges for fintech companies. This proactive approach promotes innovation while maintaining secure and fair financial services for users.

Open Banking Initiatives The UK government supports Open Banking initiatives, integrating financial services into non-financial platforms, fostering competition and innovation in the financial sector. This benefits consumers with more personalized and accessible financial products. Ongoing Open Banking regulation evolution is expected to drive embedded finance solutions growth across industries.

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 United Kingdom. Below is a summary of key market segments:

United Kingdom 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

United Kingdom 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

United Kingdom 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

United Kingdom 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

United Kingdom Embedded Wealth Management Market Size and Forecast

United Kingdom 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.