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2022 Report on Integrated Finance Market and Investment Opportunities in Africa and the Middle East: Market Expected to Grow 45.3% to $10,359.2 Million in 2022

ByElla E. Kidwell

Mar 23, 2022

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Dublin, March 23, 2022 (GLOBE NEWSWIRE) — The report “Africa & Middle East Embedded Finance Business and Investment Opportunities – 50+ KPIs on Embedded Lending, Insurance, Payment, and Wealth Segments – Q1 2022 Update” has been added to from ResearchAndMarkets.com offer.

The Africa and Middle East embedded finance industry in the region is expected to grow by 45.3% on a yearly basis to reach US$10,359.2 million in 2022.

The integrated finance industry is expected to grow steadily over the forecast period, registering a CAGR of 27.8% during the period 2022-2029. Integrated financial revenue in the region will increase from US$10,359.2 million in 2022 to US$39,820.0 million by 2029.

Strategic partnership with global players to drive financial inclusion through integrated lending in the Africa and Middle East region

In the Africa and Middle East region, a large part of the young population does not have access to financial services. Targeting such consumer demographics, companies are forging strategic alliances with global players to drive financial inclusion in the region.

  • In June 2021, Aafaq Islamic Finance entered into a strategic partnership with The Social Loan Company, a state-of-the-art artificial intelligence and big data-driven loan activation platform company.

  • As part of the collaboration with The Social Loan Company, the company plans to launch integrated loan services, providing credit to underserved young people in the region.

  • Notably, The Social Loan Company has enjoyed a phenomenal upward trajectory through its flagship integrated lending brand CASHe in India over the past four years.

The publisher expects more such strategic alliances with global players in the integrated lending industry over the next four to eight quarters, which will subsequently drive market growth in the Africa and Middle East region. East in the short and medium term.

Strategic collaboration with online and offline businesses will be key to driving the growth of integrated lending in Africa and the Middle East

To provide a growing number of consumers and businesses with integrated lending solutions, the publisher expects strategic alliances with online and offline businesses to be the main driver of industry growth in the Africa and Middle East region. Notably, buy now, pay later (BNPL) companies have widely adopted this strategy in the region.

  • In the Middle East, BNPL companies are aggressively partnering with various companies in industry verticals. Dubai-based Tabby, for example, has partnered with 2,000 global brands, which also include small and medium-sized businesses in the region. Similarly, Tamara, the Saudi BNPL company, entered into a strategic collaboration with 1,000 merchants to offer consumers short-term loans in the United Arab Emirates as well as Saudi Arabia.

While the BNPL sector is growing strongly in the online space, the publisher expects strategic partnerships in the offline space to remain a key factor in driving future industry growth in this region. . This is mainly due to businesses reopening again as the effect of the global pandemic subsides and consumers return to physical stores. Therefore, future growth will be driven by partnerships with offline retailers in the region.

The in-vehicle insurance market has gained popularity in the mobility sector in the Africa and Middle East region

The Africa and Middle East region has seen significant growth in demand for integrated insurance by the mobility industry. Moreover, the in-vehicle insurance market has already passed the growth phase of the in-vehicle mobility insurance product life cycle and is now moving towards the maturity phase at a considerable pace. The market has seen many collaborations between carpooling, driver sharing and integrated insurers.

  • Uber (India) launched integrated in-vehicle insurance for its drivers and delivery partners across Saudi Arabia in 2018.

  • Additionally, in December 2019, UAE-based app Careem (subsidiary of Uber) launched en-route insurance for passengers and drivers in 15 cities. The insurance policy will cover up to $20,000 of expenses incurred due to death or serious injury sustained while on a Careem ride.

The developments mentioned above show that the mobility industry has been providing integrated insurance to its customers and drivers for years. Additionally, the market for mopeds and e-bikes is growing rapidly owing to the surge in food and grocery delivery needs due to the Covid-19 pandemic. As a result, insurtech companies have been driven to capitalize on the expanding market for usage-based insurance for e-bike and moped fleets.

Market players are introducing new products with newly obtained funds. The launch of new products will help fleet companies by offering flexible and transparent integrated insurance options.

  • In August 2020, Israeli mobility insurance company Bambi Dynamic raised US$6 million led by MS&AD Ventures and backed by existing investor The Phoenix Insurance Company. The newly raised funds were used to improve its offerings in the mobility sector.

The integrated payments industry in Africa and the Middle East is going through a testing phase, and incumbents in the payments market ecosystem need to evolve to stay relevant in the industry as ever-changing customer demand makes the current system obsolete.

Established and new-era fintech companies have invested heavily in integrated payment solutions over the past four to six quarters, driving market growth.

Additionally, customers expect e-commerce platforms to provide a seamless shopping experience. Integrated payment may be the solution to these ever-increasing customer demands. It also allows businesses to provide value-added benefits to customers and increase loyalty. Therefore, the publisher expects strong market growth over the next four to eight quarters.

The embedded payments industry is still in its early stages of development in most major economies such as Egypt and the United Arab Emirates. However, over the past six to eight quarters, it has been observed that a spike in the number of start-ups in the integrated payment market, spurred by the collaborative efforts of governments and other stakeholders, has improved the payment systems.

The region has several diverse factors driving the growth of the market, including a large economy, large youthful population, and abundant skilled labor. As a result, the region has huge potential to grow its fintech industry in 2022 and beyond.


Integrated Finance Market Size and Forecast

Embedded Lending Market Size and Forecast

Embedded Loans by Consumer Segments, 2020 – 2029

  • Business loans

  • Retail loan

Integrated loans by B2B sectors, 2020 – 2029

  • Retail and consumer goods integrated lending

  • Loans embedded in IT and software services

  • Integrated loans in media, entertainment and leisure

  • Loans integrated into manufacturing and distribution

  • Loans integrated into real estate

  • Loans included in Other

Integrated loans by B2C sectors, 2020 – 2029

  • Retail Integrated Lending

  • Integrated Home Improvement Loans

  • Loans integrated into leisure and entertainment

  • Loans integrated into health care and well-being

  • Loans included in Other

Integrated Insurance Market Size and Forecast

Integrated insurance by industry, 2020 – 2029

  • Insurance embedded in consumer products

  • Integrated travel and hospitality insurance

  • Integrated car insurance

  • Insurance integrated into health care

  • Integrated insurance in real estate

  • Integrated transport and logistics insurance

  • Insurance integrated into other

Integrated insurance by type of insurance, 2020 – 2029

Integrated insurance by type of offer, 2020 – 2029

In-App Payments Market Size and Forecast

Integrated payment by consumer segments, 2020 – 2029

Integrated payment by end-use sector, 2020 – 2029

  • Integrated payment in retail and consumer goods

  • Integrated payment in digital products and services

  • Payment integrated into utility bill payment

  • Integrated Payment in Travel and Hospitality

  • Integrated payment in leisure and entertainment

  • Integrated payment in health and well-being

  • Integrated payment in office supplies and equipment

  • Embedded payment in Other

Integrated Wealth Management Market Size and Forecast

For more information about this report visit https://www.researchandmarkets.com/r/e8vlyc

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