How do you anticipate the embedded finance industry to grow in the coming years?

The digitization revolution in India is making customers look for faster solutions where traditional lending models are slow, and businesses can create a one-stop digital solution that allows customers to access financial solutions in one place without switching between applications with embedded finance, thereby leading to a greater partnership between financial and non-financial businesses.

According to the study, embedded finance revenues in India are expected to grow from 4,801.8 million dollars in 2022 to 21,127.5 million dollars by 2029. According to these forecasts, the financial services API market is expected to expand at an astonishing rate, driven by the growing accessibility of financial services APIs. For embedded finance firms, an increase in revenue will be significant due to a sizable addressable market.   

Financial services are seamlessly integrated into non-financial services in a process known as embedded finance. In addition to simplifying financial procedures, it provides the user with a better user experience, allowing them to obtain what they need when they need it most, resulting in better customer satisfaction.

  • An overview of embedded finance's impact

 Through embedded finance, companies have already developed several distinct revenue streams for the long term. As companies continue to innovate and find effective ways to add value, more and more revenue streams will be generated.

  • There will be a collaboration between banks and technology companies

As a result of collaborating with digital platforms, financial institutions are able to access immense amounts of consumer data. By utilizing this information, banks may increase their customer base, gain a better understanding of their current clients, customize their financial solutions, and encourage repeat business by enhancing customer satisfaction.

  • The development of data-driven financial products will take place

Data will enable banks to tailor their financial offerings to end users, and they will be able to approve customers thanks to various data sources, like platform data, which will enable advanced underwriting, resulting in cutting-edge financial products that will revolutionize the financial sector.

  • Economic improvements in financial services units 

Businesses can provide financial solutions to customers at a cost-effective price by increasing their margins and increasing their customer base in an effective and economical manner. 

  • An improved financial services experience for consumers

In addition to embedded finance companies emerging and some of our favourite brands starting to offer financial services, accessibility is set to get better, whilst already existing services are continuing to improve. Customers are now spoilt for choice as a wide range of embedded finance companies appear and some of our favourite brands offer financial services.

  • You can buy now and pay later, making it easier to manage your finances

The most popular embedded solution in India today allows customers to buy the product and pay for it later. Customer is usually required to repay their debts within a certain period of time to prevent interest, and they can repay the amount in multiple instalments. By 2026, more than half of the embedded finance market will be dominated by this service.

  • New forms of competition are emerging

With the growing penetration of embedded financial services and the influx of non-financial companies, financial services firms will need to rethink their business models to remain competitive.


As companies work together to maintain market dominance, embedded finance is forcing them to change the way they conduct business. Further, embedded finance offers an abundance of convenience and accessibility that is too hard to ignore in a world where transactions are increasingly digital. So, consumers are the largest beneficiaries of embedded finance, who have access to a wide range of financial services that are affordable, convenient, and individualized.

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