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Bangladesh sees a boom of embedded finance industry, with a projected annual growth of 28.5 per cent to a market size of US$817.1 million by 2024.
This expansion is closely linked to the rise of e-commerce companies, supported by comprehensive sector analysis across key segments such as embedded lending, insurance, payments, and wealth management.
According to Research and Markets, a global leader in market analysis founded in 2002, the embedded-finance sector is set to maintain a compounded annual growth rate (CAGR) of 48.0 per cent from 2024 to 2029, with the market expected to grow to US$5.80 billion by the end of this period.
The report highlights both the opportunities and risks across various sectors, offering a detailed breakdown of market prospects for business models, consumer segments, and distribution channels.
By integrating financial services into non-financial platforms, businesses can leverage over 75 key performance indicators (KPIs) to gain insights into market dynamics, fostering a better understanding of this rapidly growing sector.
Embedded finance covers a wide range of business models, from platform-based businesses to regulatory entities, and includes both proprietary and third-party distribution models.
Embedded insurance is emerging as a major growth area within the financial ecosystem, with potential expansion in consumer products, travel, automotive, and healthcare.
The report offers forecasts by consumer segment and type of offering, outlining the future growth trajectory for both product and service segments in the embedded-insurance market.
The embedded-lending sector is also poised for substantial diversification, with significant growth expected in both business and consumer markets. "Opportunities are emerging in various B2B and B2C sectors, including IT, real estate, and healthcare. Solutions such as buy now, pay later (BNPL) and point-of-sale (POS) lending are expected to drive growth in this segment."
Embedded-payment systems are reshaping payment infrastructures across industries such as retail and health and wellness, offering streamlined and integrated payment experiences. This segment is driving innovations that cater to both B2B and B2C markets.
"Asset-based finance management is set to experience significant growth, with opportunities identified across both hard and soft assets. This growth will be driven by demand from small and medium enterprises (SMEs) as well as large corporations," says the analysis report.