UK's Financial Future: Embedded Finance on the Rise
Embedded Finance Leading the Way
By 2025, the embedded finance market is predicted to hit $26.09 billion, growing at a steady pace. From 2026 to 2030, it's expected to reach around $35.13 billion.
What is Embedded Finance?
Embedded finance is about weaving financial services into everyday platforms. Imagine your favorite shopping app or ride-sharing service suddenly offering loans or insurance. That's embedded finance in action, making financial services more accessible and convenient.
Key Players and Innovations
- Big Banks and Fintech Companies: They are racing to be part of this trend, teaming up and creating new ways to offer financial services.
- Railsr and Weavr: Making it easier for non-financial platforms to offer banking services.
- Open Banking: Allowing different platforms to offer seamless financial services.
Benefits for Small Businesses
Platforms like Shopify are now offering lending services to help small businesses grow. This is a big deal, as traditional banks often overlook these businesses.
Insurance and Beyond
- Insurance: Companies like Uber and Currys are now offering insurance services at checkout, making insurance more accessible and convenient.
- Big Tech and Retail Platforms: They're embedding financial services into their platforms to improve customer retention and increase revenue.
- Tesco Bank: Offering savings and insurance services to its Clubcard Plus members.
Focus on Sustainability and Financial Inclusion
Platforms are now offering services that help consumers track their carbon footprint or access their wages early. This is not only good for the environment but also helps improve financial wellbeing.
