Embedded Finance: 16 Promising Under-the-Hood Fintechs

Investors view startups that offer banking as a service as a major growth area for

  • Investors view startups that offer banking as a service as a major growth area for fintech.
  • We asked 10 European fintech VC investors to pick out the top embedded finance startups to watch. 
  • Scroll on to see the 16 startups they chose.
  • See more stories on Insider’s business page.

Venture capitalists are betting on a major new growth phase for fintech: That every company will have the capacity to offer financial services in some way.

This trend, term “embedded finance”, is about enabling non-financial services companies to provide banking services beyond online payments, such as bank accounts, wallets, or loans. Companies who integrate these services can, as investors see it, benefit from new revenue sources.

For example, an e-commerce retailer that plugs in APIs from an embedded finance provider could then offer a variety of payment services or financing options to its shoppers at checkout, such as a buy now, pay later option. That in turn may generate more customer loyalty and fuel how much they buy.

Startups that can provide the underlying technical layer are poised to benefit. Embedded finance companies, including those pivoting into the trend, have been tipped to be worth as much as $7.2 trillion by 2030, according to Insider Intelligence.

We asked top investors from venture capital firms including Balderton Capital, MMC Ventures, RTP Global, and Anthemis to pick one embedded finance inside their portfolio and one non-portfolio to watch in this rapidly evolving and fast growing space.

Several chose startups operating in specialist subsectors of embedded finance, such as insurance.

Here are the 16 under-the-hood embedded finance startups to watch:

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