BaaS Market - Banking as a Service - Size, Growth & Trends (2024)

The Banking As A Service Market Report is Segmented by Enterprise (Large Enterprise, Small and Medium Enterprise), End Users (Banks, Fintech Corporations, and Others), and Regions (North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa). The Report Offers Market Size and Forecasts for the BaaS Market in Value (USD) for all the Above Segments.

Banking as a Service (BaaS) Market Analysis

The Banking As A Service Market size is estimated at USD 5.32 billion in 2024, and is expected to reach USD 14.72 billion by 2029, growing at a CAGR of 26.60% during the forecast period (2024-2029).

Banking as a Service Market (BaaS) enables various industries to develop new propositions with relevant financial services embedded into the customer experience. As a result, it became one of the most important strategic agendas for various businesses beyond banking. Currently, BaaS offerings are primarily focused on retail banking. Point-of-sale (PoS) financing is another area showing an exceptional growth rate with BaaS offerings. According to Finastra, BaaS will become more prevalent in small business lending, with BaaS revenue expected to grow 30% annually.

BaaS application provides endless opportunities, paving the route toward truly embedded finance. BaaS is transforming the financial services ecosystem. According to the Finatsra Survey of 50 senior executives, 85% of senior executives are already implementing BaaS solutions or planning to do so within the next 12-18 months. BaaS, founded on open banking frameworks, flourished in the wake of the COVID-19 outbreak. To enable the delivery of financial services at the point of consumer demand, it offers whole banking procedures (deposits, loans, and payments) as a service from specialized cloud-based API platforms. These platforms leverage the secure and regulated infrastructure of a licensed bank.

Banking as a Service (BaaS) Market Trends

Large Enterprises are Fueling the BaaS Market by Generating Majority Revenue

Large enterprises can access the best prices and features in a number of banks, enabling them to optimize their balance sheets and reduce costs as they scale up by using BaaS providers with large banking networks. A provider of BaaS capable of supporting global embedded finance solutions and expanding in the context of growing deposits is needed for large businesses with a global customer base. Partnerships with BaaS providers enable enterprises to offer a broad range of financial services. It includes payments, loans, and savings quickly and effectively while not having to install or keep the necessary infrastructure. It can attract and retain customers as well as create new sources of revenue. The addition of banking services to enterprise software platforms reduces time, power, and resources for customers, as well as improves customer satisfaction and loyalty. By improving access to a wider range of bank partners, global reach, diverse financing options and services, and enhanced customer experience, BaaS providers are able to help large enterprises. In order to enhance customer experience, companies in different sectors are looking at embedded financial solutions.

Asian Countries are Expected to Grow at the Fastest Rate

Banking as a Service (BaaS) Industry Overview

The Banking-as-a-Services market is moderately fragmented. Many companies compete for small market shares in the Banking-as-a-Service market. Businesses focus on diversifying their product offerings through product innovation to fulfill the growing demand. Moreover, with technological advancement and product innovation, domestic and international companies are increasing their market presence by securing new contracts and tapping new markets. In addition, the expansion of the Banking-as-a-Service (BaaS) industry is positively impacted by advancements in fund transaction services across the US and several emerging countries. For Instance, in October 2023, the financial technology behemoth FIS, which provides core banking, payment acceptance, and other services to banks and retailers worldwide, acquired BaaS provider Bond for an undisclosed amount. Following is a list of players that are operating in the market: Solaris SE, BNKBL Ltd, Treezor, Matchmove Pay Pte Ltd, Currency Cloud, etc.

Banking as a Service (BaaS) Market Leaders

1. Solaris SE

2. BNKBL Ltd

3. Treezor

4. Matchmove Pay Pte Ltd

5. Currency Cloud

*Disclaimer: Major Players sorted in no particular order

See Also

FinTech vs Banks: Key Insights for Smart Finance SolutionsFintech vs. Banks: Can Fintech Replace Traditional Banks?Digital Banking vs. FinTechHow Fintech solutions are reshaping the future of Banking & Finance

Banking as a Service (BaaS) Market Report - Table of Contents

1. 1. INTRODUCTION

   1. 1.1 Study Assumptions and Market Definition

   2. 1.2 Scope of the Study

2. 2. RESEARCH METHODOLOGY

3. 3. EXECUTIVE SUMMARY

4. 4. MARKET DYNAMICS AND INSIGHTS

   1. 4.1 Market Overview

   2. 4.2 Market Drivers

      1. 4.2.1 Growing Implementation of Open Banking

      2. 4.2.2 Digital Transformation in Financial Industry

   3. 4.3 Market Restraints

      1. 4.3.1 High-Risk Exposure for Baas Service Provider

      2. 4.3.2 Evolving and Complex Regulatory Landscape

   4. 4.4 Market Opportunities

      1. 4.4.1 The Development of Robust Application Programming Interface Ecosystems

      2. 4.4.2 BaaS Providers Can Offer White-Label Solutions

   5. 4.5 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.5.1 Bargaining Power of Suppliers

      2. 4.5.2 Bargaining Power of Buyers

      3. 4.5.3 Threat of New Entrants

      4. 4.5.4 Threat of Substitutes

      5. 4.5.5 Intensity of Competitive Rivalry

   6. 4.6 Value Chain Analysis For Banking-as-a-service Market

   7. 4.7 Insights on the Impact of Technology and Innovation In Banking as a Service Market

   8. 4.8 Insights on the Performance of Banking as a Service Providers Globally

   9. 4.9 Insights Into Regulatory Landscape Impacting the Market

   10. 4.10 Insights Into Consumer Behavior and Recent trends in the Market

   11. 4.11 Impact of COVID-19 on the Market

5. 5. MARKET SEGMENTATION

   1. 5.1 By Enterprise

      1. 5.1.1 Large Enterprise

      2. 5.1.2 Small and Medium Enterprise

   2. 5.2 By End Users

      1. 5.2.1 Banks

      2. 5.2.2 Fintech Corporations

      3. 5.2.3 Other End Users

   3. 5.3 By Region

      1. 5.3.1 North America

         1. 5.3.1.1 United States

         2. 5.3.1.2 Canada

      2. 5.3.2 Europe

      3. 5.3.3 Asia-Pacific

      4. 5.3.4 Latin America

      5. 5.3.5 Middle East & Africa

6. 6. COMPETITIVE LANDSCAPE

   1. 6.1 Market Concetration Overview

   2. 6.2 Company Profiles

      See Also

      The impact of Fintech on traditional banking models: How Fintech companies are disrupting traditional banking models & its implications on Banks.

      1. 6.2.1 Solaris SE

      2. 6.2.2 BNKBL Ltd.

      3. 6.2.3 Treezor

      4. 6.2.4 Matchmove Pay Pte Ltd

      5. 6.2.5 Currency Cloud

      6. 6.2.6 Clear Bank

      7. 6.2.7 Green Dot Corporation

      8. 6.2.8 Square Inc

      9. 6.2.9 Treasury Prime

      10. 6.2.10 Starling Bank

      11. 6.2.11 NymCard*

   3. *List Not Exhaustive

7. 7. MARKET FUTURE TRENDS

8. 8. DISCLAIMER AND ABOUT US

Banking as a Service (BaaS) Industry Segmentation

Banking as a Service Market (BaaS) enables various industries to develop new propositions with relevant financial services embedded into the customer experience. As a result, it became one of the most important strategic agendas for various businesses beyond banking.

The study gives a brief description of Banking as a Service (BAAS) and includes details on services provided by banks, small business lending, and digitalization. Banking as a Service (BaaS) market is segmented by enterprise, end users, and regions. By enterprise, the market is further segmented into large enterprises and small & medium enterprises. By end users, the market is further segmented into banks, fintech corporations, and others. Others include retailers, telecommunication companies, technology firms, insurance providers, and others operating in the non-financial space. By regions, the market is further segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. The report offers market size and forecasts for the BaaS market in value (USD) for all the above segments.

Banking as a Service (BaaS) Market Research FAQs

• Applicant Tracking System Market
• Application Performance Management Market
• Automation Testing Market
• Connected TV Market
• Consent Management Market
• Construction Management Software Market
• Crowdfunding Market
• Loyalty Management Market
• Mobile Payment Market
• Multi Touch Attribution Market

BaaS Industry Report

The global Banking-as-a-Service (BaaS) market is witnessing significant growth, driven by factors such as rising demand for financial services, rapid digitalization, and the availability of Application Programming Interfaces (APIs). The increasing popularity of online banking is further propelling the market, as consumer preferences shift towards digital platforms for services like cash transfers, account statements, and online purchases. BaaS platforms, a key element of open banking, are enabling banks to make their APIs available to outside developers, leading to the creation of new services and offering account holders more options for financial transparency. This is revolutionizing retail banking and changing how incumbents and customers interact. However, the high cost associated with the adoption of BaaS technology and increased cyberattacks on personal banking data may pose challenges to industry growth. Despite these hurdles, the integration of Artificial Intelligence (AI) in the BaaS platform is creating a positive market outlook. The market, segmented by component, product type, enterprise size, and end-use, is dominated by the platform component and large enterprise segments. Significant growth is being observed in regions such as North America and Europe, with Asia Pacific expected to register the fastest growth rate. Statistics for the Banking-as-a-Service (BaaS) market share, size, and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Banking as a Service analysis includes a market forecast outlook and historical overview. Get a sample of this industry analysis as a free report PDF download.

• Banking as a Service (BAAS) Market Size
• Banking as a Service (BAAS) Market Share
• Banking as a Service (BAAS) Market Trends
• Banking as a Service (BAAS) Companies

80% of our clients seek made-to-order reports. How do you want us to tailor yours?