In 2023, the Europe embedded banking market generated total revenue of US$ 4,395.3 million. Over the next decade (2023 to 2033), Europe embedded banking demand is likely to rise at 23.5% CAGR. By 2033, Europe embedded banking market size is expected to reach around US$ 36,377.9 million.
Europe embedded banking industry currently holds around 23% of the global embedded banking market. This figure is likely to further increase amid rising adoption of embed banking solutions by end users.
Key Factors Shaping Europe Market:
Integration of financial solutions, software and services with business platforms or apps through APIs is known as embedded banking. It serves as an all-encompassing word for various financial services, such as lending, bank transfers, contactless payments, and card issuance.
In embedded banking model, banks can provide purpose-built digital services to their customers, including small and mid-sized businesses. It (embedded banking) places banks at the heart of businesses’ operations.
Banking partners are necessary to give access to bank accounts, payments, and financing to the numerous fintechs that are founded every year. Even while they can develop and provide financial services, large technology companies and other nonbanking entities are unable to become banks in many other markets where the regulatory threshold is high.
Thus, the only way for fintechs to provide customers with embedded financing is through banking as a service. To serve their huge client bases, these players need end-to-end BaaS (Banking as a Service) infrastructure solutions, together with regulatory assistance, balance sheet liquidity, and other financial sources.
The increasing demand for new finance technologies is supporting the growth of embedded banking industry and the trend is likely to continue during the assessment period.
Easy availability of open banking APIs from financial service vendors and non-financial service vendors will boost the market.
Embedded banking for payments offers various benefits that are encouraging its adoption among end users. This includes increased client stickiness, lower costs and faster time to market, and access to new jurisdictions.
It also reduces regulatory burden and risks linked with introducing new financial services products. Thanks to various benefits of embedded banking solutions, they are gaining wider popularity across Europe. This in turn is creating growth opportunities for companies.
Adoption of new banking technologies including digital banking and digital payment is expected to create a plethora of opportunities for the market. Further, advancements in Insurtech and popularity of open banking will support market expansion.
With more and more retailers planning to launch new embedded finance offerings, Europe embedding banking market is set to witness impressive growth. To gain profits, leading embedded banking companies are using various strategies.
For instance, to facilitate adoption of banking as a service (BaaS) in Europe, Vodeno, Temenos, and Aion Bank collaborated in September 2021.
Similarly, in September 2022 to power eToro Money accounts across Europe, eToro partnered with OpenPayd, a leading banking-as-a-service infrastructure provider.
| Attributes | Key Insights |
|---|---|
| Estimated Europe Embedded Banking Market Value (2023) | US$ 4,395.3 million |
| Projected Market Value (2033) | US$ 36,377.9 million |
| Expected CAGR (2023 to 2033) | 23.5% |
| Top 5 Vendor Market Share | 35% |
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Europe embedded banking sales revenue increased at 21.4% CAGR from 2018 to 2022. For the forecast period, Future Market Insights (FMI) predicts demand for embedded banking solutions across Europe to rise at 23.5% CAGR.
The Europe embedded banking industry is expected to progress due to the rapid adoption of Banking as a Service (BaaS) Solutions.
"Banking as a Service" concept enables non-banks or virtual banks to provide access to common banking products or functionalities. Instead of creating their own banking operation with a full physical infrastructure or referring customers to a third-party financier, it is simpler for a range of businesses to offer finance through licensed access.
Similarly, the potential of application programming interface (API) in embedded banking will boost the market.
API (application programming interface) serves as the channel for communication between the front-end financial solution and the back-end system. It can make the interaction easier so that the system and the application can communicate with one another.
Simply, embedded finance is the use of new, creative API usage methods. This makes it possible for users to interact with the front-end financial application and send the desired signals to the banking infrastructure.
Because of the API, non-bank providers' embedded solutions do not require a separate banking system.
Strong Banking Industry & Digitalization Fueling Embedded Banking Services Demand in Germany
Germany is known for having a strong banking industry and a high level of digitalization. The country is home to various leading banks in Europe, such as Deutsche Bank and Commerzbank, and has a well-established fintech ecosystem.
The country has a high level of digitalization, which makes it a favorable market for embedded banking services. German banks have been increasingly investing in digital technologies and partnerships with fintech startups to offer embedded banking services to customers.
As per the latest report, Germany is expected to hold a share of 25.6% in the Europe embedded banking industry in 2023.
Growing FinTech Startups in France Propelling Embedded Banking Demand
France has a well-developed banking industry and is also one of the leading markets for fintech startups in Europe. The country has been actively embracing embedded banking as a way to offer customers more convenient and personalized financial services.
French banks have been investing in digital technologies and partnerships with fintech startups to offer embedded banking services to customers. For instance, the French bank BNP Paribas has partnered with several fintech startups to offer integrated financial services to its customers. This includes the ability to make payments through messaging apps or social media platforms.
With rising number of startups and increasing adoption of digital technologies, France embedded banking market is projected to expand at 19.8% CAGR through 2033.
Principal Consultant
Embedded Banking Platform API to Create Lucrative Revenue-generation Opportunities
Embedded banking platform APIs provide high security, ease of use, and cost-effectiveness for businesses that integrate them into their applications or platforms. They use secure encryption protocols and other advanced security measures to protect user data and transactions.
Embedded banking platform APIs can provide a more seamless and user-friendly experience for customers. They can also save time and money on infrastructure development.
By integrating these APIs into their applications or platforms, businesses can provide their customers with a more comprehensive banking experience, while also saving time and money on infrastructure development.
Embedded banking platform APIs can provide high security, ease of use, and cost-effectiveness for several businesses. Therefore, this segment is expected to witness a growth rate of 25.2% CAGR through 2033.
Fintech Corporations to Remain Leading End Users for Embedded Banking Solutions
FinTech corporations will play a significant role in driving demand for embedded banking solutions. As per Future Market Insights, fintech corporations segment is likely to thrive at 25.6% CAGR through 2033.
Embedded banking refers to the integration of financial services into non-financial platforms or applications, such as e-commerce websites or mobile apps. This integration enables seamless and convenient access to financial services for users, while also creating new revenue streams for the platform providers.
FinTech corporations often have established partnerships with non-financial platforms, such as e-commerce websites or social media platforms. This can facilitate the integration of embedded banking services into these platforms.
These partnerships can help drive adoption of embedded banking services among users, particularly as the trend towards digitalization and the need for remote access to financial services continues to grow.
Various Benefits Offered by Embedded Banking Solutions to Small & Mid-sized Organizations Making Them Popular
As per Future Market Insights (FMI), large organizations segment currently dominates the Europe market. On the other hand, small and mid-size organizations segment is likely to expand at a higher CAGR.
Small and mid-sized organizations, which may not have the resources or infrastructure to build their own financial services from scratch, may be particularly interested in adopting embedded banking solutions.
By partnering with financial institutions or fintech companies, these organizations can offer financial services to their customers without the need for significant investment in technology or regulatory compliance.
The Europe embedded banking market is likely to be driven by a variety of factors, including changing consumer preferences, advances in technology, and evolving regulatory frameworks.
Small and mid-sized organizations may be one segment of the market that sees significant growth as embedded banking solutions become more widely adopted. Hence, the target segment is expected to progress at a CAGR of 25.1% over the forecast period.
The Europe embedded banking market is highly competitive and is dominated by several key players. These companies are actively engaged in new product launches, mergers and acquisitions, and collaborations to gain market share.
Recent Developments:
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| Attribute | Details |
|---|---|
| Estimated Market Value (2023) | US$ 4,395.3 million |
| Projected Market Value (2033) | US$ 36,377.9 million |
| Anticipated Growth Rate (2023 to 2033) | 23.5% |
| Share of top 5 players | 35% |
| Forecast Period | 2023 to 2033 |
| Historical Data Available for | 2018 to 2022 |
| Market Analysis | US$ Million for Value |
| Key Countries Covered | Germany, Italy, France, United Kingdom, Spain, BENELUX, Russia, Rest of Europe. |
| Key Segments Covered | Solution, Organization Size, End User, and Country. |
| Key Companies Profiled | Bankable; Banxware GmbH; Boss Insights; Sdk.finance; Finix; Flywire; Marqeta; MX; OpenPayd; Plaid; Q2; Railsbank; Synapse; Tink; UNIPaaS Payments Technologies |
| Report Coverage | Market Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives |
The key trend shaping the digestive health supplements market is the escalating demand for natural and probiotic-enriched products.
The valuation of the Europe embedded banking market reaches a notable sum of US$ 4,395.3 million in 2023.
The Europe embedded banking market is estimated to achieve a valuation of US$ 36,377.9 million by 2033.
The Europe embedded banking market is poised to witness a 23.5% CAGR upswing in demand through 2033.
The dominant trend in the Europe embedded banking market is the remarkable proliferation of integrated financial solutions.
The embedded banking platform API segment is set to sustain its dominance in the market, exhibiting an outstanding 25.2% CAGR through 2033.
1. Executive Summary | Europe Embedded Banking Market
1.1. Global Market Outlook
1.2. Demand Side Trends
1.3. Supply Side Trends
1.4. Analysis and Recommendations
2. Market Overview
2.1. Market Coverage / Taxonomy
2.2. Market Definition / Scope / Limitations
3. Key Market Trends
3.1. Key Trends Impacting the Market
3.2. Product Innovation / Development Trends
4. Pricing Analysis
4.1. Pricing Analysis, By Pricing Model
4.1.1. Subscription Pricing Model
4.1.2. Perpetual Licensing
4.2. Average Pricing Analysis Benchmark
5. Market Demand (Value in US$ million) Analysis 2018 to 2022 and Forecast, 2023 to 2033
5.1. Historical Market Value (US$ million) Analysis, 2018 to 2022
5.2. Current and Future Market Value (US$ million) Projections, 2023 to 2033
5.2.1. Y-o-Y Growth Trend Analysis
5.2.2. Absolute $ Opportunity Analysis
6. Market Background
6.1. Macro-Economic Factors
6.2. Forecast Factors - Relevance & Impact
6.3. Value Chain
6.4. COVID-19 Crisis – Impact Assessment
6.4.1. Current Statistics
6.4.2. Short-Mid-Long Term Outlook
6.4.3. Likely Rebound
6.5. Market Dynamics
6.5.1. Drivers
6.5.2. Restraints
6.5.3. Opportunities
7. Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Solution
7.1. Introduction / Key Findings
7.2. Historical Market Size (US$ million) Analysis By Solution, 2018 to 2022
7.3. Current and Future Market Size (US$ million) Analysis and Forecast By Solution, 2023 to 2033
7.3.1. Embedded Banking Platform API
7.3.2. Services
7.3.2.1. Payment Processing
7.3.2.2. Lending
7.3.2.3. Contactless Payment
7.3.2.4. Card Issuing
7.3.2.5. Bank Transfer
7.3.2.6. Others
7.4. Market Attractiveness Analysis By Solution
8. Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Organization Size
8.1. Introduction / Key Findings
8.2. Historical Market Size (US$ million) Analysis By Organization Size, 2018 to 2022
8.3. Current and Future Market Size (US$ million) Analysis and Forecast By Organization Size, 2023 to 2033
8.3.1. Small and Mid-Sized Organizations
8.3.2. Large Organizations
8.4. Market Attractiveness Analysis By Organization Size
9. Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By End User
9.1. Introduction / Key Findings
9.2. Historical Market Size (US$ million) Analysis By End User, 2018 to 2022
9.3. Current and Future Market Size (US$ million) Analysis and Forecast By End User, 2023 to 2033
9.3.1. Banks
9.3.2. FinTech Corporations
9.3.3. Investment Firms
9.3.4. Others
9.4. Market Attractiveness Analysis By End User
10. Market Analysis 2018 to 2022 and Forecast 2023 to 2033, by Countries
10.1. Introduction / Key Findings
10.2. Historical Market Size (US$ million) Analysis By Countries, 2018 to 2022
10.3. Current and Future Market Size (US$ million) Analysis and Forecast By Countries, 2023 to 2033
10.3.1. Germany
10.3.2. Italy
10.3.3. France
10.3.4. United Kingdom
10.3.5. Spain
10.3.6. BENELUX
10.3.7. Russia
10.3.8. Rest of Europe
10.4. Market Attractiveness Analysis By Countries
11. Key Countries Analysis- Market
11.1. Germany Embedded Banking Market Analysis
11.1.1. By Solution
11.1.2. By Organization Size
11.1.3. By End User
11.2. Italy Market Analysis
11.2.1. By Solution
11.2.2. By Organization Size
11.2.3. By End User
11.3. France Market Analysis
11.3.1. By Solution
11.3.2. By Organization Size
11.3.3. By End User
11.4. United Kingdom Market Analysis
11.4.1. By Solution
11.4.2. By Organization Size
11.4.3. By End User
11.5. Spain Market Analysis
11.5.1. By Solution
11.5.2. By Organization Size
11.5.3. By End User
11.6. BENELUX Market Analysis
11.6.1. By Solution
11.6.2. By Organization Size
11.6.3. By End User
11.7. Russia Market Analysis
11.7.1. By Solution
11.7.2. By Organization Size
11.7.3. By End User
11.8. Rest of Market Analysis
11.8.1. By Solution
11.8.2. By Organization Size
11.8.3. By End User
12. Market Structure Analysis
12.1. Market Analysis by Tier of Companies
12.2. Market Share Analysis of Top Players
12.3. Market Presence Analysis
13. Competition Analysis
13.1. Competition Dashboard
13.2. Competition Benchmarking
13.3. Competition Deep Dive
13.3.1. Bankable
13.3.1.1. Business Overview
13.3.1.2. Solution Portfolio
13.3.1.3. Profitability by Market Segments (Solution/Organization Size/End Users/Country)
13.3.1.4. Key Strategy & Developments
13.3.2. Banxware GmbH
13.3.2.1. Business Overview
13.3.2.2. Solution Portfolio
13.3.2.3. Profitability by Market Segments (Solution/Organization Size/End Users/Country)
13.3.2.4. Key Strategy & Developments
13.3.3. Boss Insights
13.3.3.1. Business Overview
13.3.3.2. Solution Portfolio
13.3.3.3. Profitability by Market Segments (Solution/Organization Size/End Users/Country)
13.3.3.4. Key Strategy & Developments
13.3.4. Sdk.finance
13.3.4.1. Business Overview
13.3.4.2. Solution Portfolio
13.3.4.3. Profitability by Market Segments (Solution/Organization Size/End Users/Country)
13.3.4.4. Key Strategy & Developments
13.3.5. Finix
13.3.5.1. Business Overview
13.3.5.2. Solution Portfolio
13.3.5.3. Profitability by Market Segments (Solution/Organization Size/End Users/Country)
13.3.5.4. Key Strategy & Developments
13.3.6. Flywire
13.3.6.1. Business Overview
13.3.6.2. Solution Portfolio
13.3.6.3. Profitability by Market Segments (Solution/Organization Size/End Users/Country)
13.3.6.4. Key Strategy & Developments
13.3.7. Marqeta
13.3.7.1. Business Overview
13.3.7.2. Solution Portfolio
13.3.7.3. Profitability by Market Segments (Solution/Organization Size/End Users/Country)
13.3.7.4. Key Strategy & Developments
13.3.8. MX
13.3.8.1. Business Overview
13.3.8.2. Solution Portfolio
13.3.8.3. Profitability by Market Segments (Solution/Organization Size/End Users/Country)
13.3.8.4. Key Strategy & Developments
13.3.9. OpenPayd
13.3.9.1. Business Overview
13.3.9.2. Solution Portfolio
13.3.9.3. Profitability by Market Segments (Solution/Organization Size/End Users/Country)
13.3.9.4. Key Strategy & Developments
13.3.10. Plaid
13.3.10.1. Business Overview
13.3.10.2. Solution Portfolio
13.3.10.3. Profitability by Market Segments (Solution/Organization Size/End Users/Country)
13.3.10.4. Key Strategy & Developments
13.3.11. Q2
13.3.11.1. Business Overview
13.3.11.2. Solution Portfolio
13.3.11.3. Profitability by Market Segments (Solution/Organization Size/End Users/Country)
13.3.11.4. Key Strategy & Developments
13.3.12. Railsbank
13.3.12.1. Business Overview
13.3.12.2. Solution Portfolio
13.3.12.3. Profitability by Market Segments (Solution/Organization Size/End Users/Country)
13.3.12.4. Key Strategy & Developments
13.3.13. Synapse
13.3.13.1. Business Overview
13.3.13.2. Solution Portfolio
13.3.13.3. Profitability by Market Segments (Solution/Organization Size/End Users/Country)
13.3.13.4. Key Strategy & Developments
13.3.14. Tink
13.3.14.1. Business Overview
13.3.14.2. Solution Portfolio
13.3.14.3. Profitability by Market Segments (Solution/Organization Size/End Users/Country)
13.3.14.4. Key Strategy & Developments
13.3.15. UNIPaaS Payments Technologies
13.3.15.1. Business Overview
13.3.15.2. Solution Portfolio
13.3.15.3. Profitability by Market Segments (Solution/Organization Size/End Users/Country)
13.3.15.4. Key Strategy & Developments
14. Assumptions and Acronyms Used
15. Research Methodology
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Europe Embedded Banking Market
