Embedded finance is transforming how end customers access financial services, with the modularisation of financial products that can be delivered via API. This is enabling non-financial platforms - such as vertical SaaS businesses - to embed financial products such as payments, lending, or insurance into their products and customer offerings to enhance their product, improve customer retention, and often dramatically expand their monetisation potential.

The opportunity is vast with an estimated $320bn revenue pool by 2030 (BCG), and embedded finance platforms have quickly emerged across financial product ecosystems including payments, credit, insurance, investment brokerage, and banking to capture the opportunity.

Even within product ecosystems, platforms vary significantly by target customer vertical, product breadth, and deployment model - and we are even starting to see increasingly verticalised embedded propositions emerge. And across the space, managing regulatory and compliance complexity - for themselves and their customers - has often proved one of the most significant hurdles for platforms to manage and has become a key point of competitive differentiation in execution for the most successful platforms.

We are proud to have invested in a number of leading embedded finance players in Europe including Billie (B2B BNPL), Cover Genius (embedded insurance) and Brite (instant payments) and expect this to remain a productive area for value creation in the years to come.