Indonesia Embedded Finance Market Growth Opportunities: A $7,402.1 Million Market by 2029
Dublin, July 05, 2022 (GLOBE NEWSWIRE) -- The "Indonesia Embedded Finance Business and Investment Opportunities Databook - 50+ KPIs on Embedded Lending, Insurance, Payment, and Wealth Segments - Q1 2022 Update" report has been added to ResearchAndMarkets.com's offering.
The Indonesian embedded insurance industry posted significant growth over the last few quarters, and is expected to record strong growth over the next four to eight quarters. The market growth is expected to be driven primarily by product innovation and rising partnerships.
The Indonesian Embedded Finance industry is expected to grow by 44.6% on annual basis to reach US$1,821.1 million in 2022.
The embedded finance industry is expected to grow steadily over the forecast period, recording a CAGR of 28.8% during 2022-2029.
The embedded finance revenues in Indonesia will increase from US$1,821.1 million in 2022 to reach US$7,402.1 million by 2029.
Additionally, amid the growing demand for insurance services in the country, insurtech start-ups are raising funds to enhance their services and platform to meet the increasing demand. For instance, in September 2020, insurtech start-up PasarPolis announced that the firm had raised US$54 million in its Series B funding round from investors, including LeapFrog and SBI Investments. Notably, the firm is planning to use the funding round to enhance and further develop its AI-based claims automation platform, allowing it to customize insurance products for different industries.
In Indonesia, insurtech firms are entering into strategic partnerships with e-commerce platforms to expand their reach. For instance, Qoala, the insurtech firm that offers micro-insurance policies, has entered into strategic alliances with various online-only platforms such as Shopee, Tokopedia, JD.ID, and Grabkios. In addition to these e-commerce platforms, the firm has also entered into strategic partnerships with travel booking firms such as RedBus and PegiPegi.
The Indonesian embedded lending industry posted growth over the last few quarters and is expected to continue its upward momentum over the next four to eight quarters. This growth is expected to be driven mainly by the considerable growth of the fintech industry in the country.
Fintech start-ups have challenged traditional banks by bringing modern technologies, customer-centric services, and flexible technologies to the niche segments of financial services. Growing fund-raising activities are expected to accelerate the market growth further.
Indonesia has always been ripe for innovative payment methods. Due to geographical and infrastructural barriers, more than half of the country's population does not access banking services. Due to this vast unbanked population, the demand for embedded payments is growing. The market growth is further fueled by massive growth in the country's e-commerce industry. Furthermore, embedded payment options serve as an effective tool to bring financial inclusion to the country's unbanked population.
The transaction value of electronic money was increased from nearly US$10 billion in 2019 to more than US$13 billion in 2020. Notably, the retail and transportation industries dominated electronic transactions by capturing 28.2% and 26.7% share of the total electronic transactions. The data signifies a considerable opportunity for embedded payment providers in the retail and transportation industries.
Local fintech companies are currently dominating the Indonesian embedded payments market. The companies are looking forward to innovating newer payment methods and increasing their revenue streams to create a more significant economic impact.
This report provides a detailed data centric analysis of market opportunity across 50+ segments in embedded finance industry covering lending, insurance, payment, and wealth sectors.
Report Scope
The report provides in-depth, data-centric analysis of Embedded Finance industry in Indonesia. Below is a summary of key market segments:
Indonesia Embedded Finance Market Size and Forecast
Indonesia Embedded Lending Market Size and Forecast
Embedded Lending by Consumer Segments, 2020 - 2029
Business Lending
Retail Lending
Embedded Lending by B2B Sectors, 2020 - 2029
Embedded Lending in Retail & Consumer Goods
Embedded Lending in IT & Software Services
Embedded Lending in Media, Entertainment & Leisure
Embedded Lending in Manufacturing & Distribution
Embedded Lending in Real Estate
Embedded Lending in Other
Embedded Lending by B2C Sectors, 2020 - 2029
Embedded Lending in Retail Shopping
Embedded Lending in Home Improvement
Embedded Lending in Leisure & Entertainment
Embedded Lending in Healthcare and Wellness
Embedded Lending in Other
Indonesia Embedded Insurance Market Size and Forecast
Embedded Insurance by Industry, 2020 - 2029
Embedded Insurance in Consumer Products
Embedded Insurance in Travel & Hospitality
Embedded Insurance in Automotive
Embedded Insurance in Healthcare
Embedded Insurance in Real Estate
Embedded Insurance in Transport & Logistics
Embedded Insurance in Others
Embedded Insurance by Insurance Type, 2020 - 2029
Embedded Insurance in Life Segment
Embedded Insurance in Non-Life Segment
Embedded Insurance by Type of Offering, 2020 - 2029
Embedded Insurance in Product Segment
Embedded Insurance in Service Segment
Indonesia Embedded Payment Market Size and Forecast
Embedded Payment by Consumer Segments, 2020 - 2029
B2B
B2C
Embedded Payment by End-Use Sector, 2020 - 2029
Embedded Payment in Retail & Consumer Goods
Embedded Payment in Digital Products & Services
Embedded Payment in Utility Bill Payment
Embedded Payment in Travel & Hospitality
Embedded Payment in Leisure & Entertainment
Embedded Payment in Health & Wellness
Embedded Payment in Office Supplies & Equipment
Embedded Payment in Other
Indonesia Embedded Wealth Management Market Size and Forecast
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