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Leading fintech corporate venture fund. Global startup & venture capital intelligence platform.

ABN AMRO Ventures is the corporate venture fund of ABN AMRO Bank, a Dealroom.co is the foremost data provider on startup, early-stage and
leading bank in the Netherlands. growth company ecosystems in Europe and around the globe.

The €150m balance sheet fund invests in the most relevant up-and-coming
Founded in Amsterdam in 2013, we now work with many of the world's
technology companies to boost and accelerate innovation for the bank
and its clients. most prominent investors, entrepreneurs and government organizations to
provide transparency, analysis and insights on venture capital activity.
The collaboration between the fund and the portfolio companies goes far
beyond capital: ABN AMRO Ventures actively provides knowledge and
expertise, access to the bank and its systems, support from relevant
specialists inside and outside ABN AMRO, as well as an extensive external
network.

Examples of portfolio companies

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Why embedding now?

Pandemic accelerated Acquiring a customer for a Fintech infrastructure has

online transition of bank or insurance costs matured massively, BaaS to
many services. Embedding 4x than an e-commerce open banking.
online is much easier.
and 30x a retailer.*

Page / 3 Source: Dealroom.co. *Solarisbank: Embedded finance study

Table of content

1 Why embedded finance matters now

2 Fintech-enabled marketplaces and vertical SaaS

3 Embedded insurance and lending

 Why embedded finance matters
1 now
Embedded finance is a multi-trillion dollar opportunity.

Embedded finance can unlock an opportunity bigger than the current value of all fintech
startups and the top global banks and insurers, combined.

Market value
Embedded finance

Combined Insurance
$3.4 Trillion value of all
fintech startups

$7.2 Trillion
Lending

$3.6 Trillion Top 30 Global

Banks & Insurers
Payments

Today 2030

Page / 6 Source: Adapted from Simon Torrance Embedded finance, Dealroom.co

The embedded finance customer journey: bringing finance when and
where the customer needs it.

Standalone
product
User Financial company Financial
platform service

Integrated
product
User 3rd party Financial company Financial
company platform platform service

Embedded
product
User 3rd party Financial
company platform service

Page / 7 Source: Dealroom.co.

“
We believe financial services are the lifeblood
of the economy, moving beyond old fashion
products and moving towards customized
products. It's a coming-of-age for embedded
financing.

Matthew Jones
Managing Director
Every company will be a fintech → will act as a fintech

Fintech service
offerings

User interface and

customer operations

Products (payments,
lending, insurance)

Compliance, AML, KYC,

fraud, financial crime

Regulatory licenses

Page / 9 Source: Dealroom.co.

The Architecture of Embedded Finance

Embedded Finance

Non-finance User Experience

Banking-as-a-Service (BaaS)

Insourcing

Full stack Technology &

Fintechs,
Other Capability Stack
other Banks
approaches

Regulatory License

Other enablers Open banking Core banking

Page / 10 Source: Adapted from Celent, Dealroom.co.

“
It's important to build a product that serves as
a common denominator for all platforms. The
platform is only happy when the customer is
happy.

Jens Roehrborn
Co-founder and CEO
Embedded finance maturity and
potential by use case.

Insurance

Lending
● Embedded insurance and lending: huge Payments

potential and still early in the journey.

Market
Potential
● Embedded payments are already de facto,
Banking?
Banking
but BNPL, one-click checkout.

Wealth
management

Maturity

Page / 12 Source: Dealroom

Embedded finance and BaaS have attracted billions of dollars in funding
and grew 3x last year.

VC funding growth by embedded finance

trends (2021 vs 2020)

Embedded finance 3.1x $3.1B

BaaS 3.8x $3.0B

Open banking 4.6x $1.5B

Embedded payments* 5.0x $1.5B

Core banking 8.9x $1.2B

Embedded insurance 2.5x $0.8B

Embedded lending* 2.1x $0.3B

Page / 13 Source: Dealroom.co. *Excluding not white-label BNPL providers such as Klarna.
 Banks can play a key role in embedded finance. If they want to.

Collaboration and
Cocreation
Commitment, resources,
risk appetite
B2B2C B2B2BC

Technology AND License

(Full BaaS)
Emphasis on . . .

Technology License

Business model
Selected Bank impact
Examples

Page / 14 Source: Adapted from Celent, Dealroom.co

“
For banks, it can be challenging to have a
long-term commitment, even if they have a
specific niche. Itʼs a big fight to take on, and
one thatʼs better to fight together.

Hugo Bongers
Head
Embedded finance opportunities by sector.
Embedded Finance Opportunity by 2030*

49% 21% 17% 7% 6%

$3500B $1500B $1200B $500B $400B

Retail & E-commerce Others Healthcare Education Telecom

Including:

Real Estate

Mobility

working capital for consumer product supply chain and Travel

merchants financing at point insurance trade financing
of sale/checkout and insurance for
Media & Entertainment
(BNPL) business trade
platforms
Energy

Pharmaceuticals

Page / 16 Source: Dealroom.co. *Mambu: embedded finance report

 Fintech-enabled marketplaces
2 and vertical SaaS
 Marketplaces are increasingly embedding financial services:
“fintech-enabled marketplaces”.

Create demand Insurance

Listing & curation Escrow

Transaction Financing
Online Financial
marketplaces Logistics Loans services

Inventory risk Payments

Product-market risk Payroll

Fintech-enabled marketplaces
✔ Expanding total addressable market
✔ New and recurring revenue streams
✔ Lower Customer Acquisition Costs
✔ Sustainable unit economics
✔ Reduce friction at order

Page / 18 Source: “Fintech-enabled marketplaces” report by Dealroom, Adevinta Ventures and Speedinvest See the report
 Marketplaces that embed financial services command higher valuation
than their peers.
Fintech-enabled marketplaces
Median EV/Sales 6.7x

Online marketplaces Financial services

Median EV/Sales 5.3x Median EV/Sales 4.6x

Page / 19 Source: “Fintech-enabled marketplaces” report by Dealroom, Adevinta Ventures and Speedinvest See the report
 Some marketplaces have invested in building
their own fintech products in-house.
Marketplace operators develop financial
services products in-house to strengthen its
core ecosystem (e.g. Amazon, Shopify),
Investments, strategic acquisitions and in-house products increase financial inclusion and extend
payment infrastructure to third parties to
collect consumer data (e.g. Jumia,
Payments Lending Insurance Cash MercadoLibre).

Starting with MercadoLibre (marketplace) the

team has built an ecosystem, adding
Amazon payment solutions (MercadoPago), logistics
(MercadoEnvíos), financing
(MercadoCredito), advertising for sellers and
publishers (MercadoAds ) and software to
help offline businesses digitize and have an
Shopify capital online shop (MercadoShops). Also, Mercado
Pago already represents 50% of the company
value in terms of revenue generated and
transactions.
Jumia Shopify uses its merchant solutions (mainly
payments) to drive higher retention for its
core subscription product.

MercadoLibre Developing financial services product

in-house is expensive and time-consuming
(e.g. build compliance, credit risk,
anti-money laundering teams from scratch).

Page / 20 Source: “Fintech-enabled marketplaces” report by Dealroom, Adevinta Ventures and Speedinvest See the report
 While other marketplaces partner with third-party fintech startups, to
control and improve the user experience at lower initial costs.

Buy now pay later Banking Insurance Payments

Underwriting / Financing Logistics

Asset light marketplaces

Creating Listing and

demand curation

Credit scoring Manufacturing

Embedded financial products

Know Your Customer Software

Software directly competing with

Amazonʼs platform. Includes
financial services (e.g. payments).

Page / 21 Source: “Fintech-enabled marketplaces” report by Dealroom, Adevinta Ventures and Speedinvest See the report
“
Itʼs great to put our brand out there [via
embedded partnerships] because it gives
credibility, and it maintains engagement from
the client. The cross-selling is quite significant;
we onboard more clients in the end.

João Cardoso
CEO and Founder
 Financial solutions massively extend the value added in the process of
matching supply and demand.

Discovery Financing Buying Post-transaction

Search Loans Escrow Insurance

Social Subscription plans iBuying Payroll

On-demand/ Income Sharing Agreements Payments Banking

location based
Fractional ownership

Page / 23 Source: “Fintech-enabled marketplaces” report by Dealroom, Adevinta Ventures and Speedinvest See the report
Fintech is the latest evolution for Vertical SaaS.

Fintech

Bottom-Up ● It increases revenue per

(metered, trials, Premium)
user by 2-5x.

● It unlocks new verticals

Subscription SaaS where market was too
small or cost to acquire
Unlocks:
On-premise New Verticals customers too high.
Additional Revenue/Consumer
+ Licensing

Unlocks:
Individual Users

Unlocks:
SBM + MM Businesses
Unlocks:
Large
Enterprises

Pre-2000s 2000s 2010s 2020s

Page / 24 Source: Adapted from a16z, Dealroom.co.

Opportunities to embed
finance in Marketplaces
and SaaS.

» Global B2B marketplaces

» Health platforms

» Foodtech + fintech

» Insurance ecosystems
3 Embedded insurance and embedded
lending
Embedded insurance can benefit all the actors involved, from 3d party
distributors and insurers to end users.

3rd parties distributors (Platforms)

● significant revenue stream (average 18%
of total revenues)
● increase loyalty and retention
● improved customer service

Insurers
● Lower cost of customer acquisition (CAC)
● Greater availability of data
● Higher penetration rate

Customers
● More relevant, customized products
● Streamlined customer experience

» Find more on the Blog

Page / 27 Source: “The state of European Insurtech 2021” by Dealroom and Alma Mundi Ventures See the report
Amazon, Shopify, Paypal and Square are leaders in lending for
merchants and SMBs.

Paypal business loans and

Amazon lending Shopify capital paypal working capital Square Capital

Business loans, cash Business loans, cash Business loans, cash Business loans. Stopped
Type of financing Business loans
advances/working capital advances/working capital advances/working capital merchant cash advances.

Up to £1M/5M pound
Amount Up to $1M Up to $2M Up to $500k Up to $250k
(depending on provider)

US, UK, Germany, Canada, Loans: US US, UK, Australia, Germany,

Countries China, France, India, Italy, Cash advances: US, and Mexico (available UK US, Australia
and Spain Canada, UK. through Konfio)

Launch year 2011 2016 2013 May 2021 2014

$54B in total assets as of

Total funding Unknown ($1B/year in £25.7M in the first 3
provided
>$3B, $400M in Q3 2021. February 2021 >$9B
2019) months, up to Aug.
Largest non-bank lender

Goldman Sachs YouLend, Funding

Mostly directly through
Partnerships Bank of America Mostly directly Mostly directly
partnership with WebBank Xchange, Wayflyer
ING (Germany)

Page / 28 Source: Dealroom

The future of business lending will be platform-embedded lending
solutions.

Jens Roehrborn
CEO and founder,
Banxware “ Lending is the master discipline of embedded
finance. It is yet the most underserved and
underdeveloped finance product.”

» Find more on the Blog

Page / 29 Source: Dealroom.co

Explore the key
embedded finance
trends.
» Embedded finance

» BaaS

» Embedded insurance

» Embedded lending

» Open banking

» Core banking
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