Banking as a Service Market in Latin America Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

The Market Report Covers Latin America Banking As A Service Companies and is Segmented by Component (Platform, Service (Professional Service, Managed Service)), By Type (based BAAS, Cloud Based BaaS), By Enterprise(Large Enterprise, Small and Medium Enterprise), By End User (Banks, Fintech Corporations/NBFC, Others), And by Country(Argentina, Brazil, Chile, Colombia, Mexico, Peru, Rest of Latin America).

Latin America Banking as a Service (BaaS) Market Size

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Latin America Banking as a Service (BaaS) Market Summary
Study Period 2020-2029
Base Year For Estimation 2023
Market Size (2024) USD 2.14 Billion
Market Size (2029) USD 3.32 Billion
CAGR (2024 - 2029) 7.00 %
Market Concentration High

Major Players

Latin America Banking as a Service (BaaS) Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Latin America Banking as a Service (BaaS) Market Analysis

The Latin America Banking As A Service Market size is estimated at USD 2.14 billion in 2024, and is expected to reach USD 3.32 billion by 2029, growing at a CAGR of 7% during the forecast period (2024-2029).

Banking-as-a-service (or white-label banking) is a system that allows non-bank businesses to embed financial services into their products. The banking-as-a-service (BaaS) provider market will likely experience significant growth in the coming years, and the trend is forecasted to follow a positive trajectory. This growth is due to the increasing demand for BaaS platforms 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 need for banking-as-a-service (BaaS) platforms is rapidly increasing in the Latin America region, owing to the expanding financial market and expanding insurance industries. The pandemic further pushed more companies to start moving towards digitizing products and reducing human contact.

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.

Latin America Banking as a Service (BaaS) Market Trends

Rise in Latin America Fintech Funding as a Driver

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 in Latin America and the Caribbean has grown rapidly, jumping from 1166 in past years to 2482 currently. Investment in Fintech platforms increased significantly to over USD 2.3 billion in the recent year.

Latin America Banking As A Service Market - Fintech Funding in USD Million in Countries of Latin America region, 2022

The Increasing Digital Banking Adoption in Latin America is Driving the 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. It 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.

Latin America Banking-As-A-Service Market - Digital Banking Penetration in Latin Americas by Countries, 2022, in Percentage

Latin America Banking as a Service (BaaS) Industry Overview

The competitive landscape of the Latin America Banking as a Service Market is fragmented in nature as there are many players present in the market. 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. Some of the major players in the market include Nubank, Albo, Uala, Klar, and Banco Original SA.

Latin America Banking as a Service (BaaS) Market Leaders

  1. Nubank

  2. Albo

  3. Uala

  4. Klar

  5. Banco Original SA

*Disclaimer: Major Players sorted in no particular order

Latin America Banking As A Service Market Concentration
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Latin America Banking as a Service (BaaS) Market News

  • July 2023: Uala, the Latin American multi-banking fintech, announced a partnership with Western Union. This partnership will enable users of the application to receive money on their smartphones from other users across the globe.
  • January 2023: Nubank, a digital financial service platform, secured a loan of over USD 150 Million from IFC. This will help the company to strengthen its operations and expand access to financial services in Colombia.

Latin America Banking as a Service (BaaS) 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

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS AND INSIGHTS

    1. 4.1 Market Overview

    2. 4.2 Market Drivers

      1. 4.2.1 Rise of Internet of Things Devices is Driving The Market

      2. 4.2.2 Rise in Cloud Computing Technology is Driving The Market

    3. 4.3 Market Restraints

      1. 4.3.1 Rise of Data Security & Privacy Issues Restraints The Growth of the Market

      2. 4.3.2 Strict Regulatory Landscape and Dependency on Providers Can Restraints The Growth of the Market

    4. 4.4 Market Opportunities

      1. 4.4.1 Partnerships with Various Fintech Startups and Other Technology Provider

      2. 4.4.2 New Products and Solution in the Market Acts as a Growth Opportunity

    5. 4.5 Industry Value Chain Analysis

    6. 4.6 Industry Attractiveness - Porter's 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 Insights on technology Innovation in the Market.

    8. 4.8 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 and 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 Argentina

      2. 5.5.2 Brazil

      3. 5.5.3 Chile

      4. 5.5.4 Colombia

      5. 5.5.5 Mexico

      6. 5.5.6 Peru

      7. 5.5.7 Rest of Latin America

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Market Concetration Overview

    2. 6.2 Company Profiles

      1. 6.2.1 Nubank

      2. 6.2.2 Neon

      3. 6.2.3 RappiPay

      4. 6.2.4 Uala

      5. 6.2.5 Albo

      6. 6.2.6 Broxel

      7. 6.2.7 Maximo

      8. 6.2.8 Cuenca

      9. 6.2.9 Klar

      10. 6.2.10 Banco Original SA*

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

  8. 8. DISCLAIMER AND ABOUT US

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Latin America Banking as a Service (BaaS) Industry Segmentation

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 Latin America Banking as a Service market, including the analysis and forecast of market size, market segments, industry trends, major players, and growth drivers. The Latin American banking-as-a-service market is segmented by component, type, enterprise Size, and Country. The market is segmented by component (platform, service (professional service, managed service)), by type (API-based baas, cloud-based baas), by enterprise (large enterprise, and small and medium enterprise), by end-user (banks, fintech corporations/NBFC, and other end users), and by Country (Argentina, Brazil, Chile, Colombia, Mexico, Peru, and the Rest of Latin America). The Report Offers Market Size and Forecasts for the Market in Value (USD) for the Above Segments.

By Component
Platform
Service
Professional Service
Managed Service
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 Latin America
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Latin America Banking as a Service (BaaS) Market Research FAQs

The Latin America Banking As A Service Market size is expected to reach USD 2.14 billion in 2024 and grow at a CAGR of 7% to reach USD 3.32 billion by 2029.

In 2024, the Latin America Banking As A Service Market size is expected to reach USD 2.14 billion.

Nubank, Albo, Uala, Klar and Banco Original SA are the major companies operating in the Latin America Banking As A Service Market.

In 2023, the Latin America Banking As A Service Market size was estimated at USD 1.99 billion. The report covers the Latin America Banking As A Service Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Latin America Banking As A Service Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

Banking as a Service (BaaS) in Latin America Industry Report

Statistics for the 2024 Banking as a Service (BaaS) in Latin America market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Banking as a Service (BaaS) in Latin America analysis includes a market forecast outlook to 2029 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 in Latin America Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)