Embedded Finance
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Mambu Finds the Retail, Health and Education Sectors Are the Most Likely to Uptake Embedded Finance

Mambu, the cloud banking platform, has released its report titled ‘Embedded Finance: Who will win the battle for the next digital revolution?’. In this report, Mambu suggests that embedded finance is set to be worth $3.5trillion to the global retail sector, and that this sector will account for 49% of the embedded finance market within the next ten years.

Retail lending alone represents almost a third (29%) of the embedded finance opportunity, with the digitalisation of retail services set to drive increased adoption of digital wallets and flexible finance options, such as point of sale lending and ‘Buy Now Pay Later’ services.

The report, which identifies expected sector uptake of embedded finance over the next decade, also illustrates growth opportunities in the healthcare and education sectors. Healthcare is forecast to account for 17% of the market, or $1.2trillion, following a recent influx of tech companies that offer health-related payments and insurance.

Meanwhile, emerging opportunities in the education sector could see it account for 7% of the market, or $500billion. This is driven by a booming education-tech industry and growing demand for lending amid record levels of student debt.

Mambu’s own research confirms that consumer demand for embedded finance is high in these key sectors. A survey of 3,000 consumers, carried out as part of the report, shows that 86% would be interested in purchasing groceries from a cashier-less store. Meanwhile, 60% would prefer to take out a student loan directly from their academic institution rather than a bank.

In addition, 81% of consumers would be interested in purchasing health insurance via an app and, of these, almost half would be willing to pay a small premium for this mobile accessibility. The findings reflect the rise of ‘anywhere finance’ during the pandemic and the ability of digitally-enabled sectors to respond more quickly to changing consumer needs.

Eugene Danilkis, CEO at Mambu said, “We’re moving towards a ‘fourth industrial revolution’ where financial institutions need to take strategic decisions to fully capture the opportunities offered by embedded finance. One of our customers, ZestMoney, already offers its 6 million customers in India the ability to pay in instalments, without the need for a credit or debit card. This allows them to leverage the banking infrastructure to acquire customers from different verticals while, at the same time, offering the hyper-personalised products that customers want.

“The report illustrates the size of the opportunity within grasp, but it means financial institutions like banks must think, act and be tech-empowered like fintechs. For banks to compete effectively, they must also invest in technology to build and enhance their own digital offerings.”

With the embedded finance industry set to be $7trillion globally by 2030, the report from Mambu with commentary from AWS also highlights three key trends that will drive this growth:

  • Payments as part of the experience. businesses are increasingly using flexible payment options, such as Buy Now Pay Later (BNPL), to differentiate their offering, increase sales conversions, and empower buyers at checkout.
  • Growing popularity of Point of Sale (POS) lending financing. The volume of instalment-based, flexible payments and instant credit options have increased significantly in the past five years, with an increase of 20% expected in 2021. This reveals a strong consumer demand for instant access to short-term borrowing.
  • Mainstream adoption of digital wallets. As more people use their mobile phones to browse, buy and pay for products and services online, it’s forecast that digital wallets will account for 51% of eCommerce payments by 2024.


  • Francis is a journalist and our lead LatAm correspondent, with a BA in Classical Civilization, he has a specialist interest in North and South America.

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