Market Snapshot
| Study Period: | 2018-2027 |
| Base Year: | 2021 |
| CAGR: | >7 % |
|
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Market Overview
Banking as a Service (or white-label banking) is a system that allows non-bank businesses to embed financial services into their products.
The COVID-19 pandemic has pushed more companies to start moving towards the digitization of products and the reduction of human contact. Due to this, the demand for BaaS platforms increased in medium and small-sized enterprises as there is a rise in the adoption of digital banking services across several domains in Latin America. Integrating artificial intelligence, blockchain technology, and API services within internet banking leads to market growth.
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.
BaaS in Latin America is also enabling the creation of more inclusive financial solutions that can bring millions of people for the first time under the umbrella of financial services and, at the same time, help fintech companies and traditional financial institutions unlock new audiences that were previously out of their reach.
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. The report offers a complete background analysis of the Australia Buy now Pay later market, including the analysis and forecast of market size, market segments, industry trends, major players, and growth drivers. Latin America 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 (Argentina, Brazil, Chile, Colombia, Mexico, Peru, and Rest of Latin America).
| By Component | ||||
| Platform | ||||
|
| By Type | |
| API Based BaaS | |
| Cloud Based BaaS |
| By Enterprise | |
| Large Enterprise | |
| Small and Medium Enterprise |
| By End User | |
| Banks | |
| Fintech Corporations/ NBFC | |
| Others |
| By Country | |
| Argentina | |
| Brazil | |
| Chile | |
| Colombia | |
| Mexico | |
| Peru | |
| Rest of the Latin America |
Key Market Trends
Latin America Fintech Raised Funding
A portion of the world long dominated by incumbent banks and other established service providers, Fintech has emerged as a fast-track path to provide traditional and highly sophisticated services to a largely underbanked or unbanked population. The number of Fintech platforms has grown rapidly since 2018 jumping from 1166 to 2482 by the end of 2021. 80 % of them are concentrated in Brazil (31%), Mexico (21%), Colombia (11%), Argentina (11%), and Chile (7%). Payments and Remittances account for (23%) and Loans (18%), Enterprise Technologies for Financial Institutions (14%), Enterprise Finance Management (10%), and Personal (7%). Investment in Fintech platforms increased significantly to over US$1.6 billion in 2021.
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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 Latin America and is expected to continue its domination as it increases its customer base by investing in digital transformation to offer tech-savvy banking operations.
The demand for BaaS platforms in the large enterprise segment is anticipated to be driven by organizations growing inclination for reliable service platforms and automation capabilities.
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Competitive Landscape
The report covers major players operating in the Latin America Banking-As-A-Service Market. In terms of market share, few major players currently dominate the market. However, with technological advancements and service innovation, mid-size to large-size companies are increasing their market presence by securing new contracts and tapping new markets. Its major players include Nubank, Neon, RappiPay, Uala, Broxel Pay, and Albo.
Major Players
Recent Developments
- In May 2022, Tangelo announced a partnership with Waldo's to drive financial Inclusion by providing access to credit for millions of Mexican consumers.
- In October 2021, UK-based fintech Revolut announced plans to launch in Mexico as the first step to entering the Latin American market, following its US-Mexico remittance corridor in July 2021.
Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS AND DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Porter's Five Forces Analysis
4.4.1 Threat of New Entrants
4.4.2 Bargaining Power of Buyers
4.4.3 Bargaining Power of Suppliers
4.4.4 Threat of Substitutes
4.4.5 Intensity of Competitive Rivalry
4.5 Insights into Technological Advancements in the Industry
4.6 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
5.1 By Component
5.1.1 Platform
5.1.2 Service
5.1.2.1 Professional Service
5.1.2.2 Managed Service
5.2 By Type
5.2.1 API Based BaaS
5.2.2 Cloud Based BaaS
5.3 By Enterprise
5.3.1 Large Enterprise
5.3.2 Small and Medium Enterprise
5.4 By End User
5.4.1 Banks
5.4.2 Fintech Corporations/ NBFC
5.4.3 Others
5.5 By Country
5.5.1 Argentina
5.5.2 Brazil
5.5.3 Chile
5.5.4 Colombia
5.5.5 Mexico
5.5.6 Peru
5.5.7 Rest of the Latin America
6. COMPETITIVE LANDSCAPE
6.1 Market Concentration Overview
6.2 Company Profiles
6.2.1 Nubank
6.2.2 Neon
6.2.3 RappiPay
6.2.4 Uala
6.2.5 Albo
6.2.6 Broxel
6.2.7 Maximo
6.2.8 Cuenca
6.2.9 Klar
6.2.10 Revoult*
*List Not Exhaustive7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. DISCLAIMER AND ABOUT US
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Frequently Asked Questions
What is the study period of this market?
The Latin America Banking as a Service Market market is studied from 2018 - 2027.
What is the growth rate of Latin America Banking as a Service Market?
The Latin America Banking as a Service Market is growing at a CAGR of >7% over the next 5 years.
Who are the key players in Latin America Banking as a Service Market?
Nubank, Albo, Uala, Klar, Broxel Pay are the major companies operating in Latin America Banking as a Service Market.
