Embedded finance expected to net EUR 720 billion for European brands by 2026

Tuesday 21 September 2021 11:54 CET | News

OpenPayd, a UK-based payments and BaaS platform, has revealed insights from its study towards embedded finance.

The data in the report, Embedded finance surge to net EUR 720 billion for European brands by 2026, suggests 73% of brands plan on launching embedded financial services within the next two years. Across the countries surveyed, brands expect embedded finance to add an additional EUR 720.78 billion in revenue over the next five years. This is despite 95% admitting to not fully understanding what embedded finance means, and many encountering challenges associated with hiring fintech talent, the study explains.

The paper also informs that, on average, across the four main sub-sectors of embedded finance – banking, payments, insurance, and lending, respondents expected to increase their current revenues by 15% over the next ten years. 

91% only have a partial understanding of embedded finance, even though 73% say they plan to launch embedded finance offerings in the next two years and only 5% already have an embedded finance offering. Though the research has indicated general lack of knowledge about embedded finance, more than 71% plan to build new internal fintech teams to work alongside BaaS partners and implement embedded banking offers.

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Keywords: research, fintech, embedded finance, study
Categories: Banking & Fintech | Online & Mobile Banking
Countries: Europe
This article is part of category

Banking & Fintech

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