Global Banking-as-a-Service (BaaS) Market Research Report 2023-Competitive Analysis, Status and Outlook by Type, Downstream Industry, and Geography, Forecast to 2029

Global Banking-as-a-Service (BaaS) Market Research Report 2023-Competitive Analysis, Status and Outlook by Type, Downstream Industry, and Geography, Forecast to 2029

Banking as a service (BaaS) is an end-to-end process ensuring the overall execution of a financial service provided over the web. Such a digital banking service is available on demand and is carried out within a se t time-frame.

Market Overview:

The latest research study on the global Banking-as-a-Service (BaaS) market finds that the global Banking-as-a-Service (BaaS) market reached a value of USD 5359.46 million in 2022. It’s expected that the market will achieve USD 11313.07 million by 2028, exhibiting a CAGR of 13.26% during the forecast period.

Banking-as-a-Service (BaaS) Market Drivers

For banks, they have business needs to develop new customers. However, the cost for banks to fully develop all end-to-end banking digital services is relatively high. This is especially obvious for small and medium banks. Therefore, it is a better choice to cooperate with the BaaS platform. On the one hand, it can expand the business, and on the other hand, it can effectively reduce the cost of expanding the business.
For users, convenient end-to-end digital banking services can effectively improve the convenience of customers in various financial use scenarios and can effectively save users' time and cost. Therefore, BaaS service is a trend in the development of the banking industry in the future, and the needs of users will promote business adjustments and upgrades of banking service providers, and ultimately promote the development of the BaaS industry.

Banking-as-a-Service (BaaS) Market Challenges

The success of BaaS depends to a large extent on how the business capabilities and operational processes that drive them are open as APIs. A good API strategy is the cornerstone of achieving this. APIs need to adopt the best design to ensure that their use and integration is not a cumbersome process. An appropriate middleware platform or API gateway is needed to overcome the architectural limitations caused by the legacy system.
BaaS is a new banking service model that has emerged in recent years. The overall development of the industry is still in the growth stage. Therefore, how to ensure financial security while ensuring rapid growth will become one of the important challenges faced by practitioners. The management of financial security risks is the basis for ensuring the orderly operation of society. Therefore, while developing BaaS business, it is equally important to improve banking business risk management.

Region Overview:

North America had the highest growth rate of all regions.

Company Overview:

The top three companies are PayPal, Sqaure and Gemalto with the revenue market share of 29.50%, 13.06% and 9.47% in 2020.

PayPal

Fueled by a fundamental belief that having access to financial services creates opportunity, PayPal is committed to democratizing financial services and empowering people and businesses to join and thrive in the global economy.

Square, Inc.

Square, Inc. is an American financial service, merchant services aggregator, and mobile payment company based in San Francisco, California. The company markets software and hardware payments products and has expanded into small business services.

Segmentation Overview:

Among different product types, API-based Bank-as-a-Service segment is anticipated to contribute the largest market share in 2027.

Application Overview:

By application, the Banking segment occupied the biggest share from 2017 to 2022.

Key Companies in the global Banking-as-a-Service (BaaS) market covered in Chapter 3:

PayPal
Sqaure
SolarisBank
Dwolla
GoCardless
Prosper
Finexra
Galileo
Mambu
ThoughtMachine
Gemalto
Ohpen
Invoicera
OANDA
Fidor Bank
Moven

In Chapter 4 and Chapter 14.2, on the basis of types, the Banking-as-a-Service (BaaS) market from 2018 to 2029 is primarily split into:

API-based Bank-as-a-Service
Cloud-based Bank-as-a-Service

In Chapter 5 and Chapter 14.3, on the basis of Downstream Industry, the Banking-as-a-Service (BaaS) market from 2018 to 2029 covers:

Banking
Online Banks

Geographically, the detailed analysis of consumption, revenue, market share and growth rate, historic and forecast (2018-2029) of the following regions are covered in Chapter 8 to Chapter 14:

North America (United States, Canada)
Europe (Germany, UK, France, Italy, Spain, Russia, Netherlands, Turkey, Switzerland, Sweden)
Asia Pacific (China, Japan, South Korea, Australia, India, Indonesia, Philippines, Malaysia)
Latin America (Brazil, Mexico, Argentina)
Middle East & Africa (Saudi Arabia, UAE, Egypt, South Africa)