Banking as a Service Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The Report Covers Banking As A Service Companies and It is Segmented by Enterprise (Large Enterprise, Small & Medium Enterprise), by End Users (Banks, Fintech Corporations, Others) and by Regions (North America, Europe, Asia Pacific, Middle East & Africa).

Banking as a Service Market Size

Banking as a Service (BAAS) Market Summary
Study Period 2020 - 2029
Market Size (2024) USD 5.32 Billion
Market Size (2029) USD 14.72 Billion
CAGR (2024 - 2029) 26.60 %
Fastest Growing Market Asia-Pacific
Largest Market North America

Major Players

Banking as a Service (BAAS) Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Banking as a Service 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).

Post-COVID-19, there were some restraints to boost the market, but otherwise, speedy, convenient, and personalized banking and payment experiences became non-negotiable since consumers developed increasingly digital-first habits due to the COVID-19 pandemic. IBM has found that around 79% of bank executives believe that the adoption of platform-based business concepts will help them obtain a viable competitive edge and ensure better innovation, profitability, and expansion to new markets.

The global baas providers market will likely experience significant growth in the coming years, and the trend is forecasted to follow a positive trajectory. Banking-as-a-service is an end-to-end approach that enables third-party companies to provide financial services to their clients by collaborating with banks through APIs. Banking-as-a-service (BaaS) platforms provide more financial transparency options by letting banks open up their APIs for third parties to develop new services.

Many banks seek ways to innovate their payment processes to meet customers' changing expectations, but their awareness of the BaaS opportunity remains nascent. One study found that just 11% of banks are currently pursuing a BaaS strategy, and just 8% reported they are in the process of building such a strategy for future use.

Banking as a Service Market Trends

Rising Adoption of Digital Banking is Fueling the Baas Market

The continuous increase in online banking users fuels the growth of BAAS providers. Globally, digital banking users are expected to cross the 3.6 billion mark by 2024. The pandemic has accelerated the adoption of online banking by retail banks. However, cyber security concerns, the need to protect consumer data, and online fraud are restricting the growth of the market as it breaks the trust of customers, which refrains them from using online banking services. Furthermore, advancements in fund transaction services in several developing countries have a positive impact on the expansion of the banking-as-a-service sector.

Banking as a Service (BAAS) Market - Number of Active Online Banking Users Worldwide, 2020-2022, Million

Europe is Dominating the Market

Europe is experiencing a rapid expansion of BaaS services, with the market projected to increase threefold in the near future. The UK is the most prominent market for BaaS platforms, with a market share of approximately 25% in Europe. This is due to the presence of a large number of BaaS platform providers, which have enabled the adoption of modern digital banking solutions that provide convenience and efficiency while also reducing the cost of services to banks and other providers. In the UK, revenue generated through open banking-enabled small- and medium-sized business and retail customer propositions was USD 700 million; as per media reports, it is expected to register a 25% CAGR to reach USD 2 billion in the forecasted period. Hence, Europe is dominating the global Baas providers market. However, a lucrative opportunity is expected to be witnessed in the Asia Pacific owing to the development of fintech infrastructure and the rising focus of government on digital economies.

Banking as a Service (BAAS) Market - Digital Population using Online Banking Services in Europe, By Countries, 2022

Banking as a Service Industry Overview

The report covers major international players operating in the Banking as a Service (BAAS) Market. In terms of market share, few of the major players currently dominate the market. However, with technological advancement and product innovation, domestic and international companies are increasing their market presence by securing new contracts and tapping new markets. It has major players, including Green Dot Corporation, SolarisBank, Bnkbl Ltd, and others. The report offers market sizes and forecasts for the BaaS Market in Value (USD) for all the above segments.

Banking as a Service Market Leaders

  1. Green Dot Corporation

  2. SolarisBank

  3. Bnkbl Ltd

  4. Treasury Prime

  5. MatchMove Pay Pte Ltd

*Disclaimer: Major Players sorted in no particular order

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Banking as a Service Market News

  • March 2023: ICICI Bank launched a range of digital solutions for capital market participants and clients of custody on Thursday. These solutions will help various participants in the market, including stock brokers, PMS providers, FPI, FDI, and AIF clients, to meet their banking needs.
  • March 2022: Green Dot Corporation announced that it would join forces with Plaid (the data network that powers the entire digital financial ecosystem) to deliver safe open finance solutions for GO2 bank clients. Green Dot's (GOTD) GO2bank (GO2bank) is Green Dot's flagship digital bank. It's designed to empower all people to bank easily, affordably, and confidently.

Banking as a Service 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

    1. 2.1 Research Framework

    2. 2.2 Secondary Research

    3. 2.3 Primary Research

    4. 2.4 Data Triangulation and Insight Generation

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS AND INSIGHTS

    1. 4.1 Market Overview

    2. 4.2 Market Drivers

    3. 4.3 Market Restraints

    4. 4.4 Value Chain Analysis For Banking-as-a-service Market

    5. 4.5 Insights on the Impact of Technology and Innovation In Banking as a Service Market

    6. 4.6 Insights on the Performance of Banking as a Service Providers Globally

    7. 4.7 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.7.1 Bargaining Power of Buyers

      2. 4.7.2 Bargaining Power of Suppliers

      3. 4.7.3 Threat of New Entrants

      4. 4.7.4 Threat of Substitutes

      5. 4.7.5 Intensity of Competitive Rivalry

    8. 4.8 Insights Into Regulatory Landscape Impacting the Market

    9. 4.9 Insights Into Consumer Behavior and Recent trends in the Market

    10. 4.10 Impact of Covid-19 on the Market

  5. 5. MARKET SEGMENTATION

    1. 5.1 Enterprise

      1. 5.1.1 Large Enterprise

      2. 5.1.2 Small and Medium Enterprise

    2. 5.2 End Users

      1. 5.2.1 Banks

      2. 5.2.2 Fintech Corporations

      3. 5.2.3 Other End Users

    3. 5.3 Regions

      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 and Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Market Concentration Overview

    2. 6.2 Company Profiles

      1. 6.2.1 SolarisBank

      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 OPPORTUNITIES AND FUTURE TRENDS

  8. 8. ABOUT US

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Banking as a Service Industry Segmentation

The purpose of BaaS is to facilitate the integration of a large number of service providers into a single, integrated process to deliver a financial service efficiently and promptly. It is assumed that the BaaS will include certain functionalities in addition to the financial service. The services' environment must be managed, deployed, and delivered. Banking as a Service Market Growth and is Segmented by Enterprise (Large Enterprise, Small and Medium Enterprise), by End Users (Banks, Fintech Corporations, Other End Users), and by Regions (North America, Europe, Asia Pacific, Latin America and Middle East and Africa). The Report Offers Market Sizes and Forecasts for the Banking as a Service (BAAS) Market in Value (USD) for all the Above Segments.

Enterprise
Large Enterprise
Small and Medium Enterprise
End Users
Banks
Fintech Corporations
Other End Users
Regions
North America
United States
Canada
Europe
Asia-Pacific
Latin America
Middle-East and Africa
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Banking as a Service Market Research FAQs

The Banking as a Service (BAAS) Market size is expected to reach USD 5.32 billion in 2024 and grow at a CAGR of 26.60% to reach USD 14.72 billion by 2029.

In 2024, the Banking as a Service (BAAS) Market size is expected to reach USD 5.32 billion.

Green Dot Corporation, SolarisBank, Bnkbl Ltd, Treasury Prime and MatchMove Pay Pte Ltd are the major companies operating in the Banking as a Service (BAAS) Market.

Asia-Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).

In 2024, the North America accounts for the largest market share in Banking as a Service (BAAS) Market.

In 2023, the Banking as a Service (BAAS) Market size was estimated at USD 3.90 billion. The report covers the Banking as a Service (BAAS) Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Banking as a Service (BAAS) Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

The key factors driving the growth of the Banking-as-a-Service (BaaS) Market are a) Rising Adoption of Digital Banking Services b) Advancements in fund transaction services in several developing countries

Banking as a Service 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.

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Banking as a Service Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)