embedded finance industry

New research forecasts that embedded finance revenue will grow to US$617 billion by 2031, reflecting the rapid expansion of financial services integrated directly into non-financial platforms such as retail, software and marketplaces. Analysts expect payments, lending and insurance offered through these channels to become a major revenue stream for banks and fintechs as partnerships accelerate across industries.

South African investment group Purple Group has launched Hello Purple, a new embedded finance division that will package the company's own technology and offer it to fintech developers. The move lets other businesses build Purple's financial infrastructure directly into their own products. The launch was reported by FinTech Futures and is being shared within banking and fintech circles as another sign of established financial firms moving into the embedded finance market.

Apideck has released its first Embedded Finance Index, an analysis of the embedded finance sector that finds fintech companies disclose their KYC (know-your-customer) vendors 2.8 times less often than their sponsor banks. The report highlights a transparency gap in how identity and compliance providers are revealed across the ecosystem, a point likely to draw attention from compliance teams, partners and regulators tracking vendor risk.