Authored By: Sarah
11 Jul 2024

 Banking as a Service Market Size to grow by USD 21806.94 million between 2023-2027

According to a research report “ Banking as a Service Market” by End-user (Banks, NBFC, Government) Component (Platform, Services) Geography (North America, Europe, APAC, South America, Middle East and Africa)- Global Forecast to 2027 published by Technavio, the market size is estimated to grow by USD 21806.94 million, at a CAGR of  14.62% during the forecast period. Banking as a Service (BaaS) offers financial institutions and non-banking financial companies (NBFCs) the ability to integrate a comprehensive suite of banking capabilities into their offerings. This includes lending, accounting, and corporate finance functions, enabling them to deliver superior services to their customers. For consumers, BaaS platforms provide a convenient and speedy experience with a wide range of payment options. The adoption of BaaS solutions is expected to surge among financial institutions due to these advantages, as well as the opportunity to remain competitive in the market. Additionally, NBFCs can leverage BaaS to expand their service offerings and compete with traditional banks by providing core banking services to their customers.

Browse market data tables, figures, and in-depth TOC on “Banking as a Service Market” by End-user (Banks, NBFC, Government) Component (Platform, Services) Geography (North America, Europe, APAC, South America, Middle East and Africa) Global Forecast to 2027. Download Free Sample

 

By End-user, the Banks segment is projected to dominate the market size in 2024

Banking-as-a-Platform (BaaP) serves as a valuable solution for financial institutions, enabling them to leverage the specialized knowledge, infrastructure, and applications of a platform provider. By adopting BaaP, institutions can alleviate the need to construct and manage their digital infrastructure for delivering banking services, thereby allowing them to concentrate on enhancing the overall banking experience for their customers. BaaP offers customizable platform offerings that can be scaled and adapted according to evolving requirements, ensuring financial institutions remain competitive in the digital banking landscape. Furthermore, BaaP facilitates data tracking and analysis across various financial products, services, and applications, providing invaluable insights into customer behavior and interaction patterns. In summary, BaaP empowers financial institutions to stay current with the latest internet-based banking trends while maintaining a focus on delivering exceptional customer experiences.

By Component, Platform  segment is expected to hold the largest market size for the year 2024

The banking industry held the largest market share in the global Banking as a Service (BaaS) sector in 2022, with significant growth anticipated during the forecast period. This expansion can be attributed to the increasing adoption of advanced financial technology within banks, enabling them to leverage APIs and share data with third-party financial institutions. Open banking's emergence as a standard further expands revenue opportunities for banks through BaaS. This innovative solution not only generates new income streams but also facilitates cost savings for banks, making it an essential component of their digital transformation journey.

North America is forecasted to hold the largest market size by region in 2024

The banking as a service market in North America is poised for significant expansion during the forecast period. With the region's advanced technological infrastructure and leadership in technology adoption, countries such as the United States are creating a favorable environment for growth. Top North American investment banks, including Goldman Sachs, JPMorgan Chase Co., and Bank of America Corporation, are driving innovation by launching new technological applications and interfaces to enhance customer service. These strategic investments are expected to fuel the expansion of the banking as a service market in North America throughout the forecast period.

The Banking as a Service Market growth and forecasting report also includes detailed analyses of the competitive landscape of the market growth and forecasting and information about 20 market companies, including:

  • 11:FS
  • Alkami Technology Inc.
  • Banco Bilbao Vizcaya Argentaria SA
  • Block Inc.
  • Bnkbl Ltd.
  • ClearBank Ltd.
  • CREALOGIX AG
  • Currency Cloud Group Ltd.
  • Finastra
  • Fiserv Inc.
  • Green Dot Corp.
  • MatchMove Pay Pte Ltd.
  • Movencorp Inc.
  • PayPal Holdings Inc.
  • Q2 Holdings Inc.
  • Societe Generale SA
  • Solarisbank AG
  • StoneCastle Digital Solutions LLC
  • Temenos Headquarters SA
  • Urban FT Group Inc.
.

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Research Analysis Overview

The Banking-as-a-Service (BaaS) market is witnessing significant growth as banking institutions seek to leverage technology to enhance their offerings and reach a wider customer base. BaaS solutions, provided by fintech companies and traditional banks, enable third parties to offer financial services through APIs and banking software. This includes account opening, money lending, and digital transactions. Telecommunications, fitness, shopping, travel, e-commerce, and other non-financial digital channels are integrating BaaS to offer financial transparency options to their account users. Cost management dashboards and AI-driven insights are becoming essential features of BaaS platforms. Government agencies and legacy banks are also joining the BaaS bandwagon to digitize their services and remain competitive. Open banking and online banking are driving the digitalization of financial services, allowing for more efficient and accessible financial services. Fintech businesses are at the forefront of this trend, offering innovative solutions to meet the evolving needs of consumers and businesses. The BaaS market is expected to continue growing as more industries embrace digital transactions and financial services become an integral part of everyday life.

Market Research Overview

The Banking-as-a-Service (BaaS) market is witnessing significant growth as Large Enterprises and Small & Medium Enterprises (SMEs) increasingly adopt API-based BaaS systems to integrate financial services into their offerings. Open banking and BaaS platforms enable third parties, including financial technology companies, to access a provider's infrastructure through APIs, enabling the creation of innovative financial services and apps. The financial services landscape is transforming, with embedded finance and cloud services (IaaS, hardware, IT software, and new technology) becoming essential for smaller banks and banking institutions. BaaS business models offer cost management dashboards, money lending, account opening, and digital transactions, making financial services accessible through non-financial digital channels. BaaS platforms cater to various industries, including telecommunications, fitness, shopping, travel, e-commerce, and government agencies. Financial transparency options and account users' convenience are crucial in this digital age. Third parties can leverage BaaS systems to provide Artificial Intelligence (AI)-driven services, enhancing the overall customer experience. Traditional banks and legacy banks are also adopting BaaS platforms to remain competitive in the digitalization of financial services. Fintech companies and online banking are driving the growth of the BaaS market, with financial services becoming an integral part of various industries. Open banking and collaboration between financial institutions and fintech businesses are paving the way for a more interconnected financial services ecosystem.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/

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