Market Trends of APAC Banking-As-A-Service Industry
Increase In Digital Banking
Post-COVID, the value of Digital banking transactions in the Asia Pacific region is observing a continuous increase with the increase in the number of users preferring to make digital transactions while rendering a service. Banking as a Service (BaaS) enables rapid and effortless expansion of digital payment services by the fintech companies without any requirement for a banking license and infrastructure. Mobile Banking, Mobile payment, Blockchain, Insurtech, and Digital lending are among some of the services that can be offered using BaaS. India, China, Singapore, and Indonesia are among the emerging Asia-Pacific countries with an increasing share of digital transactions in the region. The rise in the number of digital payment users combined with an increase in digital payment providers is leading to a positive growth outlook for Banking as a Service in Asia Pacific.
Rising Value of Transaction in the Region
China, Japan, India, and Australia are emerging as the Asia Pacific countries with the leading value of GDP in the region. This rise is leading to a large number of financial transactions and economic activities occurring in these countries creating demand for an increase in financial services products. Alternative finance, i.e. funding available outside traditional banks. in the region is observing significant growth with India, Indonesia, South Korea, and China existing in the leading position. Rising payment volume in the region through digital commerce and Mobile POS systems has observed an increase, with demand for digital financial services by different payment facilitators leading to the expansion of the Banking as a Service (BaaS) market in the region.
