The "Germany Embedded Finance Business and Investment Opportunities Databook 75+ KPIs on Embedded Lending, Insurance, Payment, and Wealth Segments Q1 2024 Update" report has been added to ResearchAndMarkets.com's offering.
Embedded Finance industry in Germany is expected to grow by 28.2% on annual basis to reach US$ 9.79 billion in 2024. The embedded finance industry is expected to grow steadily over the forecast period, recording a CAGR of 21.4% during 2024-2029. The embedded finance revenues in the country will increase from US$ 9.79 billion in 2024 to reach US$ 25.81 billion by 2029.
This report provides a detailed data-centric analysis of the embedded finance industry, covering lending, insurance, payment, wealth and asset based finance sectors market opportunities and risks across a range of different sectors. With over 75+ KPIs at the country level, this report provides a comprehensive understanding of embedded finance market dynamics, market size and forecast.
The embedded finance market in Germany has been experiencing notable growth and innovation, driven by various factors such as technological advancements, changing consumer behaviors, regulatory developments, and strategic partnerships. Partnerships between banks, fintech companies, e-commerce platforms, and other non-financial entities have become increasingly common in Germany. These partnerships enable the seamless integration of financial services into everyday activities such as shopping, travel, and digital communication. For example, banks are partnering with e-commerce platforms to offer payment solutions, while fintech startups are collaborating with mobility companies to provide insurance and financing options.
Growth Driver in Germany: The embedded insurance wave has gained rapid momentum over the last few quarters in Germany, and several new start-ups are riding this wave with their innovative product launches. With the growth of the German insurtech industry, foreign insurtech firms are planning to expand their presence in Germany. The embedded finance market in Germany is poised for continued growth in the coming years. As digitalization accelerates across industries and consumer preferences continue to evolve, embedded finance platforms are expected to play an increasingly important role in the financial ecosystem, driving innovation, competition, and value creation.
Strategic Partnerships: The growing number of strategic partnerships among market players to launch innovative products in the country is expected to support the market growth over the next four to six quarters.
- In 2024, In Germany, Solaris, a long-standing leader in the banking market, has forged unique partnerships with brands such as Samsung Electronics, Grover (a technology rental platform) and Navit (a B2B mobility platform). Similarly, new generation providers such as Vodeno and Swan are also venturing into interesting partnerships. German automaker Mercedes Benz is also experimenting with Visa and Mastercard to enable tokenized payments in cars.
- In July 2021, Zurich Group Company, one of the leading insurers in the property and casualty business, entered a strategic partnership with Vodafone Germany. Under the partnership, both firms launched a digital-short-term luggage coverage exclusively available to Vodafone mobile customers in Germany.
Growth in the Number of Start-ups and Funding: Growth in the number of start-ups and funding activities is expected to boost further the development of the embedded insurance sector. Moreover, the publisher projects more insurtech firms in the country to raise capital for improving their platforms over the next four to eight quarters. New innovative financial products being introduced by the market players are creating immense pressure on the traditional banks to adopt technologies, to gain a competitive advantage. This has resulted in growth in partnerships and collaborations among traditional financial services providers and technology providers. Market players in the ecosystem are also raising funds to expand their geographic operations.
In Mar 2024, Germany's embedded finance platform Solaris secured $103 million (€96 million) in a Series F round. The investment was led by SBI, one of Solaris' earliest investors, with other existing investors also participating. Solaris will use the additional capital, which takes the firm's total funding to more than $486 million (€450 million), to onboard its ADAC (Allgemeiner Deutscher Automobil-Club) credit card program, strengthen its core capital, and invest further in its platform.
Major innovations of Embedded Finance Platforms in Germany: Germany's embedded finance space is brimming with innovation, constantly pushing the boundaries of how financial services are integrated into everyday life.
- Hyper-personalized Financial Products: Platforms are leveraging data analytics and machine learning to personalize financial offerings. Imagine an e-commerce platform recommending a microloan at checkout based on your purchase history and spending habits, or a travel booking app suggesting travel insurance tailored to your specific trip.
- Frictionless In-App Payments: Embedded finance is streamlining in-app payments, making them faster and more convenient. One-click purchases within ride-hailing apps, instant money transfers within social media platforms, and seamless bill payments through utility apps are all examples of this innovation.
- Integration with AI Chatbots for Financial Guidance: AI-powered chatbots within embedded finance platforms can offer personalized financial guidance and answer user queries in real-time.
This can range from simple account balance checks to suggesting budgeting strategies or investment options. The future of embedded finance platforms in Germany appears bright, driven by several factors. The publisher predicts a significant growth for the German embedded finance market in the coming years, benefiting from a robust open banking infrastructure and a growing e-commerce sector.
With increased adoption, data security and user privacy will remain paramount, requiring platforms to prioritize robust security measures and compliance with evolving regulations like GDPR. Nonetheless, potential challenges such as consumer trust and regulatory landscape adaptations need to be effectively addressed to ensure a level playing field and mitigate risks.
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 130 |
| Forecast Period | 2024 2029 |
| Estimated Market Value (USD) in 2024 | $9.8 Billion |
| Forecasted Market Value (USD) by 2029 | $25.8 Billion |
| Compound Annual Growth Rate | 21.4% |
| Regions Covered | Germany |
Scope
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
Germany 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
Germany 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
Germany 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
Germany Embedded Wealth Management Market Size and Forecast
Germany 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
For more information about this report visit https://www.researchandmarkets.com/r/nh5xwq
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