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Banking as a Service Market Size, Share, Trends, Growth Outlook

Banking as a Service Market Size, Share, Trends, Growth Outlook, and Opportunities to 2030- By Component (Platform, Services) By Product Type (API-Based Banking-as-a-Service, Cloud-Based Banking-as-a-Service) By Enterprise Size (Large Enterprises, Small & Medium Enterprises) By End-user (Banks, NBFC, Government, Others) Companies Report

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  • |Published Month : October, 2024
  • |No. of Pages : 180

The Global Banking as a Service Market Size is estimated to register 18.9% growth over the forecast period from 2023 to 2030.

 

The market growth is driven by the increasing financial industry undergoing a significant digital transformation, with traditional banks and fintech companies seeking BaaS solutions to modernize their offerings and enhance customer experience. Leading companies that are focused on Global Expansion, Tech Integration, Partnerships and Ecosystems, Real-Time Payment, Financial Inclusion, Market Consolidation, and others to boost market shares in the industry.

 

Banking as a Service Market 2023-2030

 

Market Overview

Banking as a Service (BaaS) is a model where traditional banks provide core banking services via APIs to fintech firms, enabling them to offer innovative financial products without the need for a banking license. BaaS relies on collaboration between banks and fintechs, offering benefits like cost savings, rapid innovation, and improved customer experiences. Challenges include regulatory complexity and security concerns. Use cases range from payment processing and account services to lending, wealth management, and compliance. The BaaS market is expected to grow, with a focus on customer-centric solutions and expanding service offerings.

 

Market Dynamics

Market Trends - AI and Automation: The Powerhouse Driving BaaS Innovation

AI and automation are driving forces behind innovation in the Banking as a Service (BaaS) market. They enable enhanced efficiency, security, and customer experiences by facilitating smarter risk management, personalized services, and streamlined processes such as compliance and account management. BaaS providers leverage AI and automation to deliver cutting-edge financial solutions, making these technologies central to the continuous growth and evolution of the BaaS sector.

 

Market Driver- Security and Compliance Demand Banking as a Service Market

Security and compliance are critical factors driving the growth of the Banking as a Service (BaaS) market. As financial transactions and data sharing become increasingly digital, there is a heightened need for robust security measures and adherence to regulatory requirements. BaaS providers must prioritize data protection, fraud prevention, and compliance with financial regulations like Know Your Customer (KYC) and Anti-Money Laundering (AML) to build trust with customers and regulatory bodies.

Market Opportunity-Introduction of API-Driven Banking

API-driven banking is reshaping the Banking as a Service (BaaS) market by enabling financial institutions to provide core services via APIs, fostering seamless integration with third-party platforms. This innovation empowers fintech firms to create customer-focused financial products without the need for traditional banking infrastructure, driving collaboration and rapid innovation. It fundamentally transforms how financial services are accessed and delivered, positioning the BaaS market for significant growth and evolution.

 

Market Share Analysis- Services Banking as a Service Market will register the fastest growth

The Global Banking as a Service Market is analyzed across Platforms, Services, and others. Services is poised to register the fastest growth. Services in the Banking as a Service (BaaS) market encompass API integration, account management, payment processing, compliance and regulatory support, risk management, data analytics, scalable infrastructure, customer support, white-label solutions, consulting, cross-border banking, data security, customization, innovation labs, and reporting and analytics. These services empower fintech companies to offer banking products and services without the need for a banking license, leveraging the expertise and infrastructure of BaaS providers while ensuring regulatory compliance and security.

 

Market Share Analysis- API-Based Banking-as-a-Service held a significant market share in 2023

The Global Banking as Service Market is analyzed across various Products API-Based Banking-as-a-Service, Cloud-Based Banking-as-a-Service, and others. Of these, API-Based Banking-as-a-service held a significant market share in 2023. API-based Banking-as-a-Service (BaaS) is a foundational aspect of the Banking as a Service market, enabling financial institutions to offer core banking services via APIs. These APIs facilitate seamless integration of banking functions, including account management and payments, into third-party applications. This empowers fintech companies and other third parties to create and deliver customer-centric financial services without needing traditional banking infrastructure or licenses, fostering innovation and reshaping the banking industry landscape.

 

Banking as a Service Market Segmentation

By Component

  • Platform
  • Services

By Product Type

  • API-Based Banking-as-a-Service
  • Cloud-Based Banking-as-a-Service

By Enterprise Size

  • Large Enterprises
  • Small & Medium Enterprises

By End-user

  • Banks
  • NBFC
  • Government
  • Others

By Region

  • North America (United States, Canada, Mexico)
  • Europe (Germany, France, United Kingdom, Spain, Italy, Others)
  • Asia Pacific (China, India, Japan, South Korea, Australia, Others)
  • Latin America (Brazil, Argentina, Others)
  • Middle East and Africa (Saudi Arabia, UAE, Kuwait, Other Middle East, South Africa, Nigeria, Other Africa)

 

Banking as a Service Market Companies

  • PayPal Holdings Inc
  • Fidor Solutions AG
  • Green Dot Bank
  • Moven Enterprise
  • Solarisbank AG
  • The Currency Cloud Ltd
  • Block Inc
  • Treezor
  • Match Move Pay Pte Ltd
  • Bnkbl Ltd

 

*List not exhaustive

Banking as a Service Market Outlook 2023

1 Market Overview

1.1 Introduction to the Banking as a Service Market

1.2 Scope of the Study

1.3 Research Objective

1.3.1 Key Market Scope and Segments

1.3.2 Players Covered

1.3.3 Years Considered

 

2 Executive Summary

2.1 2023 Banking as a Service Industry- Market Statistics

3 Market Dynamics

3.1 Market Drivers

3.2 Market Challenges

3.3 Market Opportunities

3.4 Market Trends

 

4 Market Factor Analysis

4.1 Porter’s Five Forces

4.2 Market Entropy

4.2.1 Global Banking as a Service Market Companies with Area Served

4.2.2 Products Offerings Global Banking as a Service Market

 

5 COVID-19 Impact Analysis and Outlook Scenarios

5.1.1 Covid-19 Impact Analysis

5.1.2 post-COVID-19 Scenario- Low Growth Case

5.1.3 post-COVID-19 Scenario- Reference Growth Case

5.1.4 post-COVID-19 Scenario- Low Growth Case

 

6 Global Banking as a Service Market Trends

6.1 Global Banking as a Service Revenue (USD Million) and CAGR (%) by Type (2018-2030)

6.2 Global Banking as a Service Revenue (USD Million) and CAGR (%) by Applications (2018-2030)

6.3 Global Banking as a Service Revenue (USD Million) and CAGR (%) by regions (2018-2030)

 

7 Global Banking as a Service Market Revenue (USD Million) by Type, and Applications (2018-2022)

7.1 Global Banking as a Service Revenue (USD Million) by Type (2018-2022)

7.1.1 Global Banking as a Service Revenue (USD Million), Market Share (%) by Type (2018-2022)

7.2 Global Banking as a Service Revenue (USD Million) by Applications (2018-2022)

7.2.1 Global Banking as a Service Revenue (USD Million), Market Share (%) by Applications (2018-2022)

 

8 Global Banking as a Service Development Regional Status and Outlook

8.1 Global Banking as a Service Revenue (USD Million) By Regions (2018-2022)

8.2 North America Banking as a Service Revenue (USD Million) by Type, and Application (2018-2022)

8.2.1 North America Banking as a Service Revenue (USD Million) by Country (2018-2022)

8.2.2 North America Banking as a Service Revenue (USD Million) by Type (2018-2022)

8.2.3 North America Banking as a Service Revenue (USD Million) by Applications (2018-2022)

8.3 Europe Banking as a Service Revenue (USD Million), by Type, and Applications (USD Million) (2018-2022)

8.3.1 Europe Banking as a Service Revenue (USD Million), by Country (2018-2022)

8.3.2 Europe Banking as a Service Revenue (USD Million) by Type (2018-2022)

8.3.3 Europe Banking as a Service Revenue (USD Million) by Applications (2018-2022)

8.4 Asia Pacific Banking as a Service Revenue (USD Million), and Revenue (USD Million) by Type, and Applications (2018-2022)

8.4.1 Asia Pacific Banking as a Service Revenue (USD Million) by Country (2018-2022)

8.4.2 Asia Pacific Banking as a Service Revenue (USD Million) by Type (2018-2022)

8.4.3 Asia Pacific Banking as a Service Revenue (USD Million) by Applications (2018-2022)

8.5 South America Banking as a Service Revenue (USD Million), by Type, and Applications (2018-2022)

8.5.1 South America Banking as a Service Revenue (USD Million), by Country (2018-2022)

8.5.2 South America Banking as a Service Revenue (USD Million) by Type (2018-2022)

8.5.3 South America Banking as a Service Revenue (USD Million) by Applications (2018-2022)

8.6 Middle East and Africa Banking as a Service Revenue (USD Million), by Type, Technology, Application, Thickness (2018-2022)

8.6.1 Middle East and Africa Banking as a Service Revenue (USD Million) by Country (2018-2022)

8.6.2 Middle East and Africa Banking as a Service Revenue (USD Million) by Type (2018-2022)

8.6.3 Middle East and Africa Banking as a Service Revenue (USD Million) by Applications (2018-2022)

 

9 Company Profiles

 

10 Global Banking as a Service Market Revenue (USD Million), by Type, and Applications (2023-2030)

10.1 Global Banking as a Service Revenue (USD Million) and Market Share (%) by Type (2023-2030)

10.1.1 Global Banking as a Service Revenue (USD Million), and Market Share (%) by Type (2023-2030)

10.2 Global Banking as a Service Revenue (USD Million) and Market Share (%) by Applications (2023-2030)

10.2.1 Global Banking as a Service Revenue (USD Million), and Market Share (%) by Applications (2023-2030)

 

11 Global Banking as a Service Development Regional Status and Outlook Forecast

11.1 Global Banking as a Service Revenue (USD Million) By Regions (2023-2030)

11.2 North America Banking as a Service Revenue (USD Million) by Type, and Applications (2023-2030)

11.2.1 North America Banking as a Service Revenue (USD) Million by Country (2023-2030)

11.2.2 North America Banking as a Service Revenue (USD Million), by Type (2023-2030)

11.2.3 North America Banking as a Service Revenue (USD Million), Market Share (%) by Applications (2023-2030)

11.3 Europe Banking as a Service Revenue (USD Million), by Type, and Applications (2023-2030)

11.3.1 Europe Banking as a Service Revenue (USD Million), by Country (2023-2030)

11.3.2 Europe Banking as a Service Revenue (USD Million), by Type (2023-2030)

11.3.3 Europe Banking as a Service Revenue (USD Million), by Applications (2023-2030)

11.4 Asia Pacific Banking as a Service Revenue (USD Million) by Type, and Applications (2023-2030)

11.4.1 Asia Pacific Banking as a Service Revenue (USD Million), by Country (2023-2030)

11.4.2 Asia Pacific Banking as a Service Revenue (USD Million), by Type (2023-2030)

11.4.3 Asia Pacific Banking as a Service Revenue (USD Million), by Applications (2023-2030)

11.5 South America Banking as a Service Revenue (USD Million), by Type, and Applications (2023-2030)

11.5.1 South America Banking as a Service Revenue (USD Million), by Country (2023-2030)

11.5.2 South America Banking as a Service Revenue (USD Million), by Type (2023-2030)

11.5.3 South America Banking as a Service Revenue (USD Million), by Applications (2023-2030)

11.6 Middle East and Africa Banking as a Service Revenue (USD Million), by Type, and Applications (2023-2030)

11.6.1 Middle East and Africa Banking as a Service Revenue (USD Million), by region (2023-2030)

11.6.2 Middle East and Africa Banking as a Service Revenue (USD Million), by Type (2023-2030)

11.6.3 Middle East and Africa Banking as a Service Revenue (USD Million), by Applications (2023-2030)

 

12 Methodology and Data Sources

12.1 Methodology/Research Approach

12.1.1 Research Programs/Design

12.1.2 Market Size Estimation

12.1.3 Market Breakdown and Data Triangulation

12.2 Data Sources

12.2.1 Secondary Sources

12.2.2 Primary Sources

12.3 Disclaimer

List of Tables

Table 1 Market Segmentation Analysis

Table 2 Global Banking as a Service Market Companies with Areas Served

Table 3 Products Offerings Global Banking as a Service Market

Table 4 Low Growth Scenario Forecasts

Table 5 Reference Case Growth Scenario

Table 6 High Growth Case Scenario

Table 7 Global Banking as a Service Revenue (USD Million) And CAGR (%) By Type (2018-2030)

Table 8 Global Banking as a Service Revenue (USD Million) And CAGR (%) By Applications (2018-2030)

Table 9 Global Banking as a Service Revenue (USD Million) And CAGR (%) By Regions (2018-2030)

Table 10 Global Banking as a Service Revenue (USD Million) By Type (2018-2022)

Table 11 Global Banking as a Service Revenue Market Share (%) By Type (2018-2022)

Table 12 Global Banking as a Service Revenue (USD Million) By Applications (2018-2022)

Table 13 Global Banking as a Service Revenue Market Share (%) By Applications (2018-2022)

Table 14 Global Banking as a Service Market Revenue (USD Million) By Regions (2018-2022)

Table 15 Global Banking as a Service Market Share (%) By Regions (2018-2022)

Table 16 North America Banking as a Service Revenue (USD Million) By Country (2018-2022)

Table 17 North America Banking as a Service Revenue (USD Million) By Type (2018-2022)

Table 18 North America Banking as a Service Revenue (USD Million) By Applications (2018-2022)

Table 19 Europe Banking as a Service Revenue (USD Million) By Country (2018-2022)

Table 20 Europe Banking as a Service Revenue (USD Million) By Type (2018-2022)

Table 21 Europe Banking as a Service Revenue (USD Million) By Applications (2018-2022)

Table 22 Asia Pacific Banking as a Service Revenue (USD Million) By Country (2018-2022)

Table 23 Asia Pacific Banking as a Service Revenue (USD Million) By Type (2018-2022)

Table 24 Asia Pacific Banking as a Service Revenue (USD Million) By Applications (2018-2022)

Table 25 South America Banking as a Service Revenue (USD Million) By Country (2018-2022)

Table 26 South America Banking as a Service Revenue (USD Million) By Type (2018-2022)

Table 27 South America Banking as a Service Revenue (USD Million) By Applications (2018-2022)

Table 28 Middle East and Africa Banking as a Service Revenue (USD Million) By Region (2018-2022)

Table 29 Middle East and Africa Banking as a Service Revenue (USD Million) By Type (2018-2022)

Table 30 Middle East and Africa Banking as a Service Revenue (USD Million) By Applications (2018-2022)

Table 31 Financial Analysis

Table 32 Global Banking as a Service Revenue (USD Million) By Type (2023-2030)

Table 33 Global Banking as a Service Revenue Market Share (%) By Type (2023-2030)

Table 34 Global Banking as a Service Revenue (USD Million) By Applications (2023-2030)

Table 35 Global Banking as a Service Revenue Market Share (%) By Applications (2023-2030)

Table 36 Global Banking as a Service Market Revenue (USD Million), And Revenue (USD Million) By Regions (2023-2030)

Table 37 North America Banking as a Service Revenue (USD)By Country (2023-2030)

Table 38 North America Banking as a Service Revenue (USD Million) By Type (2023-2030)

Table 39 North America Banking as a Service Revenue (USD Million) By Applications (2023-2030)

Table 40 Europe Banking as a Service Revenue (USD Million) By Country (2023-2030)

Table 41 Europe Banking as a Service Revenue (USD Million) By Type (2023-2030)

Table 42 Europe Banking as a Service Revenue (USD Million) By Applications (2023-2030)

Table 43 Asia Pacific Banking as a Service Revenue (USD Million) By Country (2023-2030)

Table 44 Asia Pacific Banking as a Service Revenue (USD Million) By Type (2023-2030)

Table 45 Asia Pacific Banking as a Service Revenue (USD Million) By Applications (2023-2030)

Table 46 South America Banking as a Service Revenue (USD Million) By Country (2023-2030)

Table 47 South America Banking as a Service Revenue (USD Million) By Type (2023-2030)

Table 48 South America Banking as a Service Revenue (USD Million) By Applications (2023-2030)

Table 49 Middle East and Africa Banking as a Service Revenue (USD Million) By Region (2023-2030)

Table 50 Middle East and Africa Banking as a Service Revenue (USD Million) By Region (2023-2030)

Table 51 Middle East and Africa Banking as a Service Revenue (USD Million) By Type (2023-2030)

Table 52 Middle East and Africa Banking as a Service Revenue (USD Million) By Applications (2023-2030)

Table 53 Research Programs/Design for This Report

Table 54 Key Data Information from Secondary Sources

Table 55 Key Data Information from Primary Sources

 

List of Figures

Figure 1 Market Scope

Figure 2 Porter’s Five Forces

Figure 3 Global Banking as a Service Revenue (USD Million) By Type (2018-2022)

Figure 4 Global Banking as a Service Revenue Market Share (%) By Type (2022)

Figure 5 Global Banking as a Service Revenue (USD Million) By Applications (2018-2022)

Figure 6 Global Banking as a Service Revenue Market Share (%) By Applications (2022)

Figure 7 Global Banking as a Service Market Revenue (USD Million) By Regions (2018-2022)

Figure 8 Global Banking as a Service Market Share (%) By Regions (2022)

Figure 9 North America Banking as a Service Revenue (USD Million) By Country (2018-2022)

Figure 10 North America Banking as a Service Revenue (USD Million) By Type (2018-2022)

Figure 11 North America Banking as a Service Revenue (USD Million) By Applications (2018-2022)

Figure 12 Europe Banking as a Service Revenue (USD Million) By Country (2018-2022)

Figure 13 Europe Banking as a Service Revenue (USD Million) By Type (2018-2022)

Figure 14 Europe Banking as a Service Revenue (USD Million) By Applications (2018-2022)

Figure 15 Asia Pacific Banking as a Service Revenue (USD Million) By Country (2018-2022)

Figure 16 Asia Pacific Banking as a Service Revenue (USD Million) By Type (2018-2022)

Figure 17 Asia Pacific Banking as a Service Revenue (USD Million) By Applications (2018-2022)

Figure 18 South America Banking as a Service Revenue (USD Million) By Country (2018-2022)

Figure 19 South America Banking as a Service Revenue (USD Million) By Type (2018-2022)

Figure 20 South America Banking as a Service Revenue (USD Million) By Applications (2018-2022)

Figure 21 Middle East and Africa Banking as a Service Revenue (USD Million) By Region (2018-2022)

Figure 22 Middle East and Africa Banking as a Service Revenue (USD Million) By Type (2018-2022)

Figure 23 Middle East and Africa Banking as a Service Revenue (USD Million) By Applications (2018-2022)

Figure 24 Global Banking as a Service Revenue (USD Million) By Type (2023-2030)

Figure 25 Global Banking as a Service Revenue Market Share (%) By Type (2030)

Figure 26 Global Banking as a Service Revenue (USD Million) By Applications (2023-2030)

Figure 27 Global Banking as a Service Revenue Market Share (%) By Applications (2030)

Figure 28 Global Banking as a Service Market Revenue (USD Million) By Regions (2023-2030)

Figure 29 North America Banking as a Service Revenue (USD Million) By Country (2023-2030)

Figure 30 North America Banking as a Service Revenue (USD Million) By Type (2023-2030)

Figure 31 North America Banking as a Service Revenue (USD Million) By Applications (2023-2030)

Figure 32 Europe Banking as a Service Revenue (USD Million) By Country (2023-2030)

Figure 33 Europe Banking as a Service Revenue (USD Million) By Type (2023-2030)

Figure 34 Europe Banking as a Service Revenue (USD Million) By Applications (2023-2030)

Figure 35 Asia Pacific Banking as a Service Revenue (USD Million) By Country (2023-2030)

Figure 36 Asia Pacific Banking as a Service Revenue (USD Million) By Type (2023-2030)

Figure 37 Asia Pacific Banking as a Service Revenue (USD Million) By Applications (2023-2030)

Figure 38 South America Banking as a Service Revenue (USD Million) By Country (2023-2030)

Figure 39 South America Banking as a Service Revenue (USD Million) By Type (2023-2030)

Figure 40 South America Banking as a Service Revenue (USD Million) By Applications (2023-2030)

Figure 41 Middle East and Africa Banking as a Service Revenue (USD Million) By Region (2023-2030)

Figure 42 Middle East and Africa Banking as a Service Revenue (USD Million) By Region (2023-2030)

Figure 43 Middle East and Africa Banking as a Service Revenue (USD Million) By Type (2023-2030)

Figure 44 Middle East and Africa Banking as a Service Revenue (USD Million) By Applications (2023-2030)

Figure 45 Bottom-Up and Top-Down Approaches for This Report

Figure 46 Data Triangulation

 

Banking as a Service Market Segmentation

By Component

  • Platform
  • Services

By Product Type

  • API-Based Banking-as-a-Service
  • Cloud-Based Banking-as-a-Service

By Enterprise Size

  • Large Enterprises
  • Small & Medium Enterprises

By End-user

  • Banks
  • NBFC
  • Government
  • Others

By Region

  • North America (United States, Canada, Mexico)
  • Europe (Germany, France, United Kingdom, Spain, Italy, Others)
  • Asia Pacific (China, India, Japan, South Korea, Australia, Others)
  • Latin America (Brazil, Argentina, Others)
  • Middle East and Africa (Saudi Arabia, UAE, Kuwait, Other Middle East, South Africa, Nigeria, Other Africa)