Banking as a Service Market is Expected to Register a CAGR of 12.50% During the Review Period, 2020–2030

MRFR Press Release/Market Research Future has published a Half- Cooked Research Report on the Global Banking As a Service Market.

Global Banking as a Service Market is projected to grow at a CAGR of 12.50% during the forecast period: MRFR

The Banking as a Service Market is predicted to reach USD 73.06 billion by 2032, registering a 12.50% CAGR during the forecast period, 2024–2032. In this report, Market Research Future (MRFR) includes the segmentation and dynamics of the market to offer a better glimpse of the market in the next few years. Banking as a Service (BaaS) is an end-to-end procedure that allows financial technology companies and other third parties to interface directly with bank systems via APIs, allowing them to build banking services on top of the provider's infrastructure and rearranging the global financial services landscape. BaaS systems have evolved as a key component of open banking, in which banks make their application programming interfaces (APIs) available to third parties so that they can establish new services, providing account users with more financial transparency options. The seamless integration of financial services and goods into non-financial digital channels enables BaaS. Consumers are increasingly using these networks for services such as e-commerce, travel, shopping, fitness, and telecommunications.

The rising adoption of BaaS in financial services is a crucial driver driving the global BaaS market forward. The increasing usage of financial services such as banking, professional counseling, wealth management, mutual funds, insurance, stock exchange, treasury/debt instruments, tax/audit consultation, capital restructuring, and portfolio management indicates the increased use of digital transactions in banking. In recent years, the growing number of Internet services has fueled the digital revolution, affecting BaaS among mobile-based users and business owners adopting digital technology in banking sectors, including banking software, audit software and services. There are around 5,000 companies worldwide that offer APIs and bank-as-a-service solutions such as account opening, money lending, and cost management dashboards.

Segmental Analysis

The scope of the global Banking, as a Service market has been segmented, based on type, organization size, application, and region.

Based on the type, the global Banking as a Service market is segmented into API-based Bank-as-a-Service and Cloud-based Bank-as-a-Service. Cloud-based Bank-as-a-service segment is accounted for largest share of the revenue in the global banking-as-a-service market.

Based on Organization Size, the global Banking as a Service market is segmented into large enterprises and small and medium enterprises. During the projected period, large enterprises accounted for the biggest share of global banking as a service revenue.

Based on application, the global Banking as a Service market is segmented into government, banks, and NBFC. Banks segment is expected to hold the largest market share during projected period.

Regional Analysis

Geographically, the global Banking as a Service market has been segmented into North America, Europe, Asia-Pacific, the Middle East & Africa, and South America.

North America is expected to be the largest market for asset performance management during the forecast period. North America is likely to be the dominant regional market due to the faster adoption of fintech technologies in developed countries in the region—the US, Canada, and Mexico. This is mainly as the region is one of the most technologically advanced regions with the presence of a large number of market players such as Greendot Corporation (US), Paypal (US), Moven (US), and Square Inc. (US). Europe is expected to advance at the highest CAGR during the forecast period due to the growing utilization of advanced technologies, the rise in demand for financial services, and growth in the presence of FinTech companies in the region.

Key Players

Some of the key players in the global market are Twilio Inc. (US), Braintree (US), BOKU (US), Coinbase Global Inc., Dwolla (US), Zettle (Sweden), Fidor Bank (Germany), GoCardless (UK), Gemalto (Netherlands), Intuit (US), Square Inc. (US), PayPal (US), Prosper Inc. (US), Solaris Bank (Germany), and Moven (US).