APAC Banking-As-A-Service Market – Growth, Trends, COVID-19 Impact And Forecast (2022-2027)

The APAC Banking-As-A-Service Market is segmented by Component (Platform and Service (Professional Service and Managed Service)), by Type (API-based BaaS and Cloud-based BaaS), by Enterprise Size (Large Enterprise and Small & Medium Enterprise), by End-user (Banks, NBFC/Fintech Corporations and Others) and by Country (China, India, Japan, South Korea, Indonesia, Vietnam, Malaysia, Australia and New Zealand, and Rest of Asia-Pacific).

Market Snapshot

APAC Banking-As-A-Service Market
Study Period: 2018-2027
Base Year: 2021
Fastest Growing Market: Asia-Pacific
Largest Market: Asia-Pacific
CAGR: >7 %

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Market Overview

The demand for BaaS services in APAC is greater than in EMEA and the Americas. In APAC, 88% of top executives in various industries (including banking, healthcare, retail, and technology) have implemented or plan to use BaaS solutions, compared to 80% in EMEA and 87% in the Americas.

The primary BaaS ecosystem participants (distributors, enablers, and providers) aim to boost their BaaS investments and relationships because they estimate the BaaS market to grow at a rate of more than 50% annually over the next five years. The changing landscape of the banking and financial services business has led end-users to adopt innovative digital banking solutions that offer ease and efficiency while lowering costs for banks and other service providers, resulting in market growth.

Due to Covid-19, Demand for BaaS platforms increased in medium and small-sized enterprises as there is a rise in an adaption of digital banking services across several domains in APAC. Integrating artificial intelligence, blockchain technology, and API services within internet banking leads to market growth.

Scope of the Report

Banking as a Service (BaaS) is a business model in which licensed banks incorporate their digital banking services directly into the products of non-bank enterprises. APAC Banking-As-A-Service Market is segmented by Component (Platform and Service (Professional Service and Managed Service)), by Type (API-based BaaS and Cloud-based BaaS), by Enterprise Size (Large Enterprise and Small & Medium Enterprise), by End-user (Banks, NBFC/Fintech Corporations and Others) and by Country (China, India, Japan, South Korea, Indonesia, Vietnam, Malaysia, Australia and New Zealand, and Rest of Asia-Pacific).

By Component
Platform
Service
Professional Service
Managed Service
By Type
API Based BaaS
Cloud Based BaaS
By Enterprise
Large Enterprise
Small & Medium Enterprise
By End User
Banks
Fintech Corporations/NBFC
Others
By Country
China
India
Japan
South Korea
Indonesia
Vietnam
Malaysia
Australia and New Zealand
Rest of Asia-Pacific

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Key Market Trends

Increasing Demand for POS Finance Driving Banking as a Service.

BNPL (Buy Now Pay Later) and other financing options (e.g., interest-bearing point of sale loans) are included in POS financing. BNPL has grown more widely available in recent years at a variety of merchants around the world. BNPL is likely to continue to grow but at a slower pace than other POS financing BaaS providers.

T1

The Rise in Adoption of Banking-as-a-Service Platform in Large Organizations Boosting the BaaS Market

The use of BaaS platforms in large organizations segment is more than in small and medium-sized enterprises, it accounts for more than 50% market share in APAC and is expected to continue its domination as it is increasing its customer base by investing in digital transformation to offer tech-savvy banking operations.

The demand for BaaS platforms in the large enterprises segment is anticipated to be driven by organizations’ growing inclination for reliable service platforms and automation capabilities

T2

Competitive Landscape

The report covers major players operating in the APAC Banking-As-A-Service Market. In terms of market share, the market is fragmented between major and small players. However, with technological advancement and service innovation, mid-size to large-size companies are increasing their market presence by securing new contracts and tapping new markets. It has major players, including One Connect, Du Xiaoman Financial, Money Forward and Policy Bazar, etc.,

Recent Developments

  • In January 2022, OneConnect Financial Technology Co., Ltd., a leading technology-as-a-service platform for financial institutions, announced today that it had formed a strategic alliance with Chengfang Financial Technology Co., Ltd., a financial technology firm founded by the People's Bank of China. OneConnect and Chengfang Financial Technology will collaborate to explore new applications for data privacy technology in bank surveillance systems, promote the introduction and sharing of new data standards, and identify the financial data collaboration and circulation models required by businesses to meet the requirements for secure cloud computing under the terms of the agreement.
  • In March 2022, Kyash, a Tokyo-based mobile finance software, raised USD 41.2 million in Series D fundraising (4.9 billion JPY). Japan Post Investment Corporation, Block (previously known as Square), Greyhound Capital, SMBC Nikko Securities, Altos Ventures, Goodwater Capital, StepStone Group, JAFCO Group, Mitsui Sumitomo Insurance Capital, and other investors participated in the round.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Deliverables

    2. 1.2 Study Assumptions

    3. 1.3 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Market Drivers

    3. 4.3 Market Restraints

    4. 4.4 Insights on Various Regulatory Landscape

    5. 4.5 Insights on impact of technology and innovation in the Market

    6. 4.6 Industry Attractiveness - Porters' Five Forces Analysis

      1. 4.6.1 Threat of New Entrants

      2. 4.6.2 Bargaining Power of Buyers

      3. 4.6.3 Bargaining Power of Suppliers

      4. 4.6.4 Threat of Substitutes

      5. 4.6.5 Intensity of Competitive Rivalry

    7. 4.7 Impact of COVID-19 on the Market

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Component

      1. 5.1.1 Platform

      2. 5.1.2 Service

        1. 5.1.2.1 Professional Service

        2. 5.1.2.2 Managed Service

    2. 5.2 By Type

      1. 5.2.1 API Based BaaS

      2. 5.2.2 Cloud Based BaaS

    3. 5.3 By Enterprise

      1. 5.3.1 Large Enterprise

      2. 5.3.2 Small & Medium Enterprise

    4. 5.4 By End User

      1. 5.4.1 Banks

      2. 5.4.2 Fintech Corporations/NBFC

      3. 5.4.3 Others

    5. 5.5 By Country

      1. 5.5.1 China

      2. 5.5.2 India

      3. 5.5.3 Japan

      4. 5.5.4 South Korea

      5. 5.5.5 Indonesia

      6. 5.5.6 Vietnam

      7. 5.5.7 Malaysia

      8. 5.5.8 Australia and New Zealand

      9. 5.5.9 Rest of Asia-Pacific

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Market Concetration Overview

    2. 6.2 Company Profiles

      1. 6.2.1 ZestMoney

      2. 6.2.2 MoneyTap

      3. 6.2.3 Paytm

      4. 6.2.4 OneConnect

      5. 6.2.5 Jiedaibao

      6. 6.2.6 Money Forward

      7. 6.2.7 Kyash

      8. 6.2.8 Moneycatcha

      9. 6.2.9 Policybazaar

      10. 6.2.10 Razorpay

    3. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

  8. 8. DISCLAIMER AND ABOUT US

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Frequently Asked Questions

The APAC Banking-As-A-Service Market market is studied from 2018 - 2027.

The APAC Banking-As-A-Service Market is growing at a CAGR of >7% over the next 5 years.

Asia-Pacific is growing at the highest CAGR over 2021- 2026.

Asia-Pacific holds highest share in 2021.

One Connect, Money Forward, Razorpay, Paytm, Policy Bazaar are the major companies operating in APAC Banking-As-A-Service Market.

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