The embedded finance industry in the UK is projected to more than double, growing from £6.47billion in 2024 to £15.77billion by 2029, as large businesses increasingly view embedded financial services as a strategic growth driver. New research from ClearBank reveals that nearly half (48%) of large UK corporates see embedded finance as a crucial way to launch new revenue-generating services.
The report, ‘The embedded economy: Why brands are embracing financial services as a driver for innovation and growth,’ found that implementing payments, accounts, and lending is rapidly shifting from a niche technical innovation to a boardroom priority. Over a quarter (28%) of senior leaders believe embedded finance could help drive double-digit revenue growth for their business, with 67% expecting at least 5% growth.
High ambition meets implementation challenge
Despite the significant revenue opportunities, the report highlights a massive gap between ambition and current adoption. Only 5% of large firms have already launched embedded financial offerings, yet three-quarters (75%) said they would offer these services today if they were easy to implement.
This gap is primarily driven by practical obstacles and risk aversion. When asked about challenges, corporates cited: integration challenges (61%), regulatory compliance (49%), and lack of technical expertise (44%). Beyond technical hurdles, businesses also flagged reputational risks, with 65% concerned about damage if a service fails.
Emma Hagan, ClearBank UK CEO, emphasised the strategic imperative for businesses. “We believe we’re on the cusp of the embedded economy,” Hagan said. “For any business looking to remain competitive in the digital age, these services can no longer be seen as ‘add-ons’. They are becoming essential infrastructure to deepen customer loyalty and open new revenue streams.”
Loyalty and cross-sector growth
For many corporates, the primary motivation for embedding finance is strengthening customer relationships. Over half of firms (63%) highlighted the opportunity to deliver a more seamless and convenient experience, positioning embedded finance as a customer service differentiator as much as a commercial driver.
While embedded finance began primarily in the retail sector, interest is now broadening. Appetite for embedding services was highest in consumer products and services (23%), retail (20%), and healthcare (18%), with payments, insurance, and lending being the most considered services. This broadening interest signals a structural change in non-financial companies looking to add layers of value and deepen engagement with customers.
Success in this market will depend not only on demonstrating the revenue potential but also on providing trusted infrastructure and regulatory clarity to reduce implementation risks, allowing businesses to move from intent to action with confidence.
