This report examines the Banking-as-a-Service market landscape in detail; assessing market trends and factors shaping the evolution of this rapidly growing market. The report delivers comprehensive analysis of the strategic opportunities for BaaS providers; addressing key verticals and developing challenges, and how financial institutions and non-financial businesses should navigate these. It also Includes evaluation of key country-level opportunities for BaaS deployment and growth.
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- 1. Banking-as-a-Service: Key Takeaway & Strategic Recommendations
- 1.1 Key Takeaways
- 1.1.1 Regulatory Scrutiny on BaaS Has Raised the Cost of Compliance
- 1.1.2 Wealth Management & Savings Accounts Have the Most Potential
- 1.1.3 Increased Digital Banking Adoption and Enhanced Personalisation
- 1.2 Strategic Recommendations
- 1.2.1 Traditional Banks Must Offer BaaS to Remain Competitive
- 1.2.2 Rapidly Expand Product Portfolios by Scouting for Partnerships with a Diverse Range of Technology Partners
- 1.2.3 Encourage Adoption of AI-driven Regtech to Enhance Security
- 2. Banking-as-a-Service - Market Landscape
- 2.1 Introduction
- 2.1.1 Definitions & Scope
- 2.1.2 Functionalities of BaaS
- Figure 2.1: BaaS Concept Outline
- Figure 2.2: How APIs Work
- 2.2 Current Market Landscape
- 2.2.1 BaaS versus BaaP
- Figure 2.3: BaaS versus BaaP
- 2.2.2 BaaS & Open Banking
- Figure 2.4: How Open Banking Works
- 2.2.3 How Is BaaS Offered?
- Figure 2.5: How Is BaaS Offered?
- 2.2.4 BaaS Applications: Product Offerings
- Figure 2.6: BaaS Core Product Offerings
- i. Payment Processing
- ii. Account Management
- iii. Cards Issuing
- iv. Wealth Management & Savings
- v. Onboarding
- vi. Lending
- vii. Loyalty & Rewards
- viii. Compliance and Regulatory Support
- ix. Accounting Services
- x. Customer Support
- 2.2.5 BaaS Applications: Effective Use Cases
- Figure 2.7: BaaS Platform Industry Applications
- i. Fintech Startups
- ii. eCommerce Platforms
- iii. Retail and Consumer Goods
- iv. Gig Economy and Freelance Platforms
- v. Insurance
- vi. Travel and Hospitality
- vii. Property Tech
- viii. HR Tech
- 2.2.6 Banking-as-a-Service Regulations
- i. PSD2 (EU)
- ii. Open Banking (UK)
- iii. US
- iv. Open Banking (Brazil)
- v. Consumer Data Right Rules (Australia)
- vi. Unified Payments Interface (India)
- FINTECH & PAYMENTS
- vii. Open API Framework (Hong Kong)
- viii. The Future of Open Banking
- 2.3 Current Trends
- 2.3.1 Increase in Digital Payments
- Figure 2.8: Smartphone Penetration in 2024 (%), Split by the Top 25 Countries
- 2.3.2 Embedded Finance: Superapps
- Figure 2.9: Embedded Finance Segments by Market Prospects
- 2.3.3 Integration with AI
- 2.4 Technological Approach Assessment
- 2.4.1 BaaS Technological Approach Assessment
- i. APIs
- Figure 2.10: Distribution of APIs by Product Area
- ii. Cloud Computing
- 2.5 Future Outlook
- 2.5.1 BaaS for BNPL & POS Financing
- 2.5.2 B2B BaaS
- 2.5.3 Monetisation Opportunities
- 3. Banking-as-a-Service: Segment Analysis
- 3.1 Introduction
- 3.1.1 Small/Medium Enterprises
- 3.1.2 Large Enterprises
- 3.1.3 Fintechs
- 3.1.4 Banks
- 3.1.5 Consumers
- 4. Country Readiness Index & Regional Analysis
- 4.1.1 Country Readiness Index
- Figure 4.1: Juniper Research’s: 8 Key Regions Definitions
- Table 4.2: Juniper Research’s BaaS Country Readiness Index: Scoring Criteria ..
- Figure 4.3: Juniper Research BaaS Country Readiness Index
- Figure 4.4: Juniper Research Competitive Web: BaaS Regional Opportunities
- 4.1.2 North America
- Figure 4.5: Total Number of Banked Individuals with Current/Checking Accounts Accessed via BaaS in North America (m), 2024
- i. US
- 4.1.3 Latin America
- Figure 4.6: Total BaaS Platform Revenue ($m), Split by Select Countries in Latin America, 2024
- i. Brazil
- 4.1.4 West Europe
- Figure 4.7: Total BaaS Platform Revenue ($m), Split by Select Countries in West Europe, 2024
- i. France
- ii. Germany
- iii. UK
- 4.1.5 Central & East Europe
- Figure 4.8: Total BaaS Platform Revenue ($m), Split by Select Countries, 2023-2028
- 4.1.6 Far East & China
- Figure 4.9: Total BaaS Platform Revenue in the Far East & China ($m), Split by Select Countries, 2024
- 4.1.7 Indian Subcontinent
- Figure 4.10: Total BaaS Platform Revenue in Indian Subcontinent ($m), Split by Select Countries, 2023-2028
- 4.1.8 Rest of Asia Pacific
- Figure 4.11: Total BaaS Platform Revenue in Rest of Asia Pacific ($m), Split by Select Countries, 2024
- 4.1.9 Africa & Middle East
- Figure 4.12: Total BaaS Platform Revenue in Africa & Middle East ($m), Split by Select Countries, 2023-2028
- 4.1.10 BaaS Regional Opportunities: Heatmap Analysis Results
- Table 4.13: Juniper Research Country Readiness Index: North America
- Table 4.14: Juniper Research Country Readiness Index: Latin America
- Table 4.15: Juniper Research Country Readiness Index: West Europe
- Table 4.16: Juniper Research Country Readiness Index: Central & East Europe .
- Table 4.17: Juniper Research Country Readiness Index: Far East & China
- Table 4.18: Juniper Research Country Readiness Index: Indian Subcontinent
- Table 4.19: Juniper Research Country Readiness Index: Rest of Asia Pacific
- Table 4.20: Juniper Research Country Readiness Index: Africa & Middle East
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