The Latin America Embedded Finance Business and Investment Opportunities – + KPIs on Embedded Lending, Insurance, Payment, and Wealth Segments – Q Update report has been added to ResearchAndMarketsm s offering.
According to the Q Embedded Finance Survey, the Embedded Finance industry in the region is expected to grow by .% on annual basis to reach US$,. million in .
The embedded finance industry is expected to grow steadily over the forecast period, recording a CAGR of .% during -. The embedded finance revenues in the region will increase from US$,. million in to reach US$,. million by .
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, the publisher 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 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- 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, the publisher 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.
The report provides regional insights, along with an in-depth data centric analysis of the Embedded Finance industry in Latin America, covering + KPIs for each region and country + charts and + tables in all.
