Embedded finance transaction value to more than double to $7 trillion in US by 2026, but financial institutions must move quickly to keep up–Bain & Company and Bain Capital report

• Payments and lending will continue to be the largest embedded financial services. But these will be bolstered by the growth of adjacent value-added services, including insurance, tax, and accounting.
• Established financial institutions face major challenges from embedded finance and urged to adapt and reinvent business models to take advantage of its opportunities and growing scope

BOSTON, Sept. 13, 2022 /PRNewswire/ — Embedded finance, the integration of value-added financial services into software offerings, is set to redefine how consumers and businesses build and manage relationships with financial services, according to new research and analysis from Bain & Company and Bain Capital. The swift acceleration in use of embedded finance, and its transition into the financial mainstream, is being propelled as its proposition enhances customer experience and financial access, alongside cost- and risk-reduction benefits for companies across the value chain.

The forecasts for the huge expansion of embedded finance, in a detailed new analysis of the fast-moving sector from Bain & Company and Bain Capital, show that revenue opportunities for software platforms and the enabling infrastructure providers that power these embedded offerings will more than double from $21 billion in 2021 to $51 billion in 2026. The transaction…