Banking-as-a-Service Market By Component (Platform, Service), By Type (API-based Bank-as-a-service, Cloud-based Bank-as-a-service), By End User (Banks, FinTech Corporations/NBFC, Others): Global Opportunity Analysis and Industry Forecast, 2023-2032
Banking-as-a-service is a non-banking system that allows the third-party organization to offer core financial services to their customers by merging with banks through APIs. It helps the non-banks such as FinTech and non-FinTech businesses to build products such as debit cards and credit cards on top of the traditional banking infrastructure. Furthermore, it helps in understanding the customer buying behavior and provides customized offer to them to increase customer loyalty. Furthermore, by using application programming interfaces (APIs) and other technological solutions, Banking-as-a-Service (BaaS) is a business model that enables non-bank organizations to offer a variety of financial services. By outsourcing standard banking operations to specialized service providers, the BaaS model allows companies to incorporate banking services into their own platforms and apps. Such operations include payments, deposits, loans, and compliance. BaaS promotes innovation, scalability, and the development of tailored financial solutions by facilitating cooperation between fintech businesses and traditional financial institutions.
The banking-as-a-service market is driven by the streamlining of financial services. Banking-as-a-service allows companies and financial institutions to contract with specialist service providers to handle certain banking tasks. They can attain operational efficiency and concentrate on their main skills by doing this. Compared to internal operations, BaaS suppliers frequently possess the infrastructure and knowledge necessary to manage these tasks more effectively. Furthermore, the increase in use of digital transformation technology in banks drives the demand for the banking-as-a-service. However, high cost of adoption hampers the expansion of banking-as-a-service markets. Financial institutions are able to compare the costs of deploying BaaS with the expenses associated with developing and maintaining internal solutions. In such a scenario, enterprises believe adopting BaaS to be much more expensive due to which they choose internal alternatives. Furthermore, the increase in cyber-attacks restricts the banking-as-a-service market growth. On the contrary, the banking-as-a-service market benefits from an increase in demand for banking-as-a-service infrastructure to improve the business value. Businesses reach underserved or unbanked populations by providing financial services through the use of BaaS infrastructure. Businesses support financial inclusion objectives, reach a larger customer base, and generate additional revenue by utilizing the capabilities of BaaS providers.
The banking-as-a-service market is segmented on the basis of component, type, enterprise size, end user, and region. On the basis of component, the market is divided into platform and service. By type, it is bifurcated into API-based Bank-as-a-service and cloud-based bank-as-a-service. By end user, it is categorized into banks, fintech corporation/NBFC, and others. On the basis of region, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The report analyses the profiles of key players operating in the banking-as-a-service market such as Banco Bilbao Vizcaya Argentaria, Block, Inc, Bnkbl Ltd, ClearBank Ltd, Green Dot, MatchMove Pay Pte Ltd, Solaris SE., Starling Bank, Stripe, Inc., and Treasury Prime. These players have adopted various strategies to increase their market penetration and strengthen their position in the banking-as-a-service market.
Key Benefits for StakeholdersThe study provides in-depth analysis of the global banking-as-a-service market along with the current & future trends to illustrate the imminent investment pockets.
Information about key drivers, restrains, & opportunities and their impact analysis on the global banking-as-a-service market size are provided in the report.
Porter’s five forces analysis illustrates the potency of buyers and suppliers operating in the industry.
The quantitative analysis of the global banking-as-a-service market from 2022 to 2032 is provided to determine the market potential.
Key Market SegmentsBy ComponentPlatform
Service
By TypeAPI-based Bank-as-a-service
Cloud-based Bank-as-a-service
By End UserBanks
FinTech Corporations/NBFC
Others
By RegionNorth America
U.S.
Canada
Europe
UK
Germany
France
Italy
Spain
Rest of Europe
Asia-Pacific
China
Japan
India
Australia
South Korea
Rest of Asia-Pacific
LAMEA
Latin America
Middle East
Africa
Key Market PlayersStripe, Inc.
MatchMove Pay Pte Ltd
Solaris SE
Starling Bank
Block, Inc.
Treasury Prime
Green Dot Corporation
ClearBank Ltd
Bnkbl Ltd
Banco Bilbao Vizcaya Argentaria, S.A.
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