Market Size of Banking As A Service (BAAS) Industry
| 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
*Disclaimer: Major Players sorted in no particular order |
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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.
