Banking as a Service Market Research Reportβ€”Global Forecast till 2027

Banking as a Service Market Research Report: Information by Type (API-Based Bank-as-a-Service and Cloud-Based Bank-as-a-Service), Organization Size (Small & Medium Enterprise and Large Enterprise), Application (Government, Banks, and NBFC), and Region (North America, Europe, Asia-Pacific, Middle East & Africa, and South America)β€”Forecast till 2027

ID: MRFR/ICT/9233-HCR | November 2021 | Region: Global | 141 Pages         

 

TABLE OF CONTENTS

1. EXECUTIVE SUMMARY

1.1. Market Attractiveness Analysis

1.1.1. Global Banking as a Service Market, by Type

1.1.2. Global Banking as a Service Market, by Organization Size

1.1.3. Global Banking as a Service Market, by Application

1.1.4. Global Banking as a Service Market, by Region

2. MARKET INTRODUCTION

2.1. Definition

2.2. Scope of the Study

2.3. Market Structure

3. RESEARCH METHODOLOGY

3.1. Research Process

3.2. Primary Research

3.3. Secondary Research

3.4. Market Size Estimation

3.5. Forecast Model

3.6. List of Assumptions

4. MARKET DYNAMICS

4.1. Introduction

4.2. Drivers

4.2.1. Rise in demand for financial services

4.2.2. Growth in presence of FinTech companies

4.3. Restraints

4.3.1. High costs of adoption

4.4. Opportunities

4.4.1. Rise in demand for embedded finance solutions

4.5. Impact of COVID-19 on the Market

4.5.1. Impact on the IT industry

4.5.2. Impact on the IT expenditure by organiations

4.5.3. Impact on the overall market y-o-y from 2020 to 2027

5. MARKET FACTOR ANALYSIS

5.1. Value Chain Analysis

5.2. Market Alerts

5.3. Technological Trends

6. GLOBAL BANKING AS A SERVICE MARKET, BY TYPE

6.1. Introduction

6.2. API-Based Bank-as-a-Service

6.3. Cloud-Based Bank-as-a-Service

7. GLOBAL BANKING AS A SERVICE MARKET, BY ORGANIZATION SIZE

7.1. Introduction

7.2. Small & Medium Enterprises

7.3. Large Enterprises

8. GLOBAL BANKING AS A SERVICE MARKET, BY APPLICATION

8.1. Introduction

8.2. Government

8.3. Banks

8.4. NBFC

9. GLOBAL BANKING AS A SERVICE MARKET, BY REGION

9.1. Introduction

9.2. North America

9.2.1. Market Size & Estimates, by Country, 2018-2027

9.2.2. Market Size & Estimates, by Type, 2018–2027

9.2.3. Market Size & Estimates, by Organization Size, 2018–2027

9.2.4. Market Size & Estimates, by Application, 2018–2027

9.2.5. US

9.2.5.1. Market Size & Estimates, by Type, 2018–2027

9.2.5.2. Market Size & Estimates, by Organization Size, 2018–2027

9.2.5.3. Market Size & Estimates, by Application, 2018–2027

9.2.6. Canada

9.2.6.1. Market Size & Estimates, by Type, 2018–2027

9.2.6.2. Market Size & Estimates, by Organization Size, 2018–2027

9.2.6.3. Market Size & Estimates, by Application, 2018–2027

9.2.7. Mexico

9.2.7.1. Market Size & Estimates, by Type, 2018–2027

9.2.7.2. Market Size & Estimates, by Organization Size, 2018–2027

9.2.7.3. Market Size & Estimates, by Application, 2018–2027

9.3. Europe

9.3.1. Market Size & Estimates, by Country, 2018-2027

9.3.2. Market Size & Estimates, by Type, 2018–2027

9.3.3. Market Size & Estimates, by Organization Size, 2018–2027

9.3.4. Market Size & Estimates, by Application, 2018–2027

9.3.5. UK

9.3.5.1. Market Size & Estimates, by Type, 2018–2027

9.3.5.2. Market Size & Estimates, by Organization Size, 2018–2027

9.3.5.3. Market Size & Estimates, by Application, 2018–2027

9.3.6. Germany

9.3.6.1. Market Size & Estimates, by Type, 2018–2027

9.3.6.2. Market Size & Estimates, by Organization Size, 2018–2027

9.3.6.3. Market Size & Estimates, by Application, 2018–2027

9.3.7. France

9.3.7.1. Market Size & Estimates, by Type, 2018–2027

9.3.7.2. Market Size & Estimates, by Organization Size, 2018–2027

9.3.7.3. Market Size & Estimates, by Application, 2018–2027

9.3.8. Rest of Europe

9.3.8.1. Market Size & Estimates, by Type, 2018–2027

9.3.8.2. Market Size & Estimates, by Organization Size, 2018–2027

9.3.8.3. Market Size & Estimates, by Application, 2018–2027

9.4. Asia-Pacific

9.4.1. Market Size & Estimates, by Country, 2018-2027

9.4.2. Market Size & Estimates, by Type, 2018–2027

9.4.3. Market Size & Estimates, by Organization Size, 2018–2027

9.4.4. Market Size & Estimates, by Application, 2018–2027

9.4.5. China

9.4.5.1. Market Size & Estimates, by Type, 2018–2027

9.4.5.2. Market Size & Estimates, by Organization Size, 2018–2027

9.4.5.3. Market Size & Estimates, by Application, 2018–2027

9.4.6. India

9.4.6.1. Market Size & Estimates, by Type, 2018–2027

9.4.6.2. Market Size & Estimates, by Organization Size, 2018–2027

9.4.6.3. Market Size & Estimates, by Application, 2018–2027

9.4.7. Japan

9.4.7.1. Market Size & Estimates, by Type, 2018–2027

9.4.7.2. Market Size & Estimates, by Organization Size, 2018–2027

9.4.7.3. Market Size & Estimates, by Application, 2018–2027

9.4.8. Rest of Asia-Pacific

9.4.8.1. Market Size & Estimates, by Type, 2018–2027

9.4.8.2. Market Size & Estimates, by Organization Size, 2018–2027

9.4.8.3. Market Size & Estimates, by Application, 2018–2027

9.5. Middle East & Africa

9.5.1. Market Size & Estimates, by Type, 2018–2027

9.5.2. Market Size & Estimates, by Organization Size, 2018–2027

9.5.3. Market Size & Estimates, by Application, 2018–2027

9.6. South America

9.6.1. Market Size & Estimates, by Type, 2018–2027

9.6.2. Market Size & Estimates, by Organization Size, 2018–2027

9.6.3. Market Size & Estimates, by Application, 2018–2027

10. COMPETITIVE LANDSCAPE

10.1. Introduction

10.2. Vendor Share Analysis, 2020

10.3. Competitive Benchmarking

10.4. Recent Developments

10.4.1. New Product Launches

10.4.2. Mergers & Acquisitions

10.4.3. Partnerships/Agreements/Collaborations

10.4.4. Business Expansions

11. COMPANY PROFILES

11.1. Twilio Inc. (US)

11.1.1. Company Overview

11.1.2. Financial Overview

11.1.3. Products Offered

11.1.4. Key Developments

11.1.5. SWOT Analysis

11.1.6. Key Strategies

11.2. Braintree (US)

11.2.1. Company Overview

11.2.2. Financial Overview

11.2.3. Products Offered

11.2.4. Key Developments

11.2.5. SWOT Analysis

11.2.6. Key Strategies

11.3. BOKU (US)

11.3.1. Company Overview

11.3.2. Financial Overview

11.3.3. Products Offered

11.3.4. Key Developments

11.3.5. SWOT Analysis

11.3.6. Key Strategies

11.4. Coinbase Global Inc.

11.4.1. Company Overview

11.4.2. Financial Overview

11.4.3. Products Offered

11.4.4. Key Developments

11.4.5. SWOT Analysis

11.4.6. Key Strategies

11.5. Dwolla (US)

11.5.1. Company Overview

11.5.2. Financial Overview

11.5.3. Products Offered

11.5.4. Key Developments

11.5.5. SWOT Analysis

11.5.6. Key Strategies

11.6. Zettle (Sweden)

11.6.1. Company Overview

11.6.2. Financial Overview

11.6.3. Products Offered

11.6.4. Key Developments

11.6.5. SWOT Analysis

11.6.6. Key Strategies

11.7. Fidor Bank (Germany)

11.7.1. Company Overview

11.7.2. Financial Overview

11.7.3. Products Offered

11.7.4. Key Developments

11.7.5. SWOT Analysis

11.7.6. Key Strategies

11.8. GoCardless (UK)

11.8.1. Company Overview

11.8.2. Financial Overview

11.8.3. Products Offered

11.8.4. Key Developments

11.8.5. SWOT Analysis

11.8.6. Key Strategies

11.9. Gemalto (Netherlands)

11.9.1. Company Overview

11.9.2. Financial Overview

11.9.3. Products Offered

11.9.4. Key Developments

11.9.5. SWOT Analysis

11.9.6. Key Strategies

11.10. Intuit (US)

11.10.1. Company Overview

11.10.2. Financial Overview

11.10.3. Products Offered

11.10.4. Key Developments

11.10.5. SWOT Analysis

11.10.6. Key Strategies

11.11. Square Inc. (US)

11.11.1. Company Overview

11.11.2. Financial Overview

11.11.3. Products Offered

11.11.4. Key Developments

11.11.5. SWOT Analysis

11.11.6. Key Strategies

11.12. PayPal (US)

11.12.1. Company Overview

11.12.2. Financial Overview

11.12.3. Products Offered

11.12.4. Key Developments

11.12.5. SWOT Analysis

11.12.6. Key Strategies

11.13. Prosper Inc. (US)

11.13.1. Company Overview

11.13.2. Financial Overview

11.13.3. Products Offered

11.13.4. Key Developments

11.13.5. SWOT Analysis

11.13.6. Key Strategies

11.14. Solaris Bank (Germany)

11.14.1. Company Overview

11.14.2. Financial Overview

11.14.3. Products Offered

11.14.4. Key Developments

11.14.5. SWOT Analysis

11.14.6. Key Strategies

11.15. Moven (US)

11.15.1. Company Overview

11.15.2. Financial Overview

11.15.3. Products Offered

11.15.4. Key Developments

11.15.5. SWOT Analysis

11.15.6. Key Strategies

12. APPENDIX

12.1.1. Discussion Blueprint

LIST OF TABLES

TABLE 1 LIST OF ASSUMPTIONS

TABLE 2 GLOBAL BANKING AS A SERVICE MARKET, BY TYPE, 2019–2027 (USD MILLION)

TABLE 3 GLOBAL BANKING AS A SERVICE MARKET, BY ORGANIZATION SIZE, 2019–2027 (USD MILLION)

TABLE 4 GLOBAL BANKING AS A SERVICE MARKET, BY APPLICATION, 2019–2027 (USD MILLION)

TABLE 5 GLOBAL BANKING AS A SERVICE MARKET, BY REGION, 2019–2027 (USD MILLION)

TABLE 6 NORTH AMERICA: BANKING AS A SERVICE MARKET, BY COUNTRY, 2019–2027 (USD MILLION)

TABLE 7 NORTH AMERICA :BANKING AS A SERVICE MARKET, BY TYPE, 2019–2027 (USD MILLION)

TABLE 8 NORTH AMERICA: BANKING AS A SERVICE MARKET, BY ORGANIZATION SIZE, 2019–2027 (USD MILLION)

TABLE 9 NORTH AMERICA: BANKING AS A SERVICE MARKET, BY APPLICATION, 2019–2027 (USD MILLION)

TABLE 10 US:BANKING AS A SERVICE MARKET, BY TYPE, 2019–2027 (USD MILLION)

TABLE 11 US:BANKING AS A SERVICE MARKET, BY ORGANIZATION SIZE, 2019–2027 (USD MILLION)

TABLE 12 US:BANKING AS A SERVICE MARKET, BY APPLICATION, 2019–2027 (USD MILLION)

TABLE 13 CANADA: BANKING AS A SERVICE MARKET, BY TYPE, 2019–2027 (USD MILLION)

TABLE 14 CANADA: BANKING AS A SERVICE MARKET, BY ORGANIZATION SIZE, 2019–2027 (USD MILLION)

TABLE 15 CANADA: BANKING AS A SERVICE MARKET, BY APPLICATION, 2019–2027 (USD MILLION)

TABLE 16 MEXICO: BANKING AS A SERVICE MARKET, BY TYPE, 2019–2027 (USD MILLION)

TABLE 17 MEXICO: BANKING AS A SERVICE MARKET, BY ORGANIZATION SIZE, 2019–2027 (USD MILLION)

TABLE 18 MEXICO: BANKING AS A SERVICE MARKET, BY APPLICATION, 2019–2027 (USD MILLION)

TABLE 19 EUROPE: BANKING AS A SERVICE MARKET, BY TYPE, 2019–2027 (USD MILLION)

TABLE 20 EUROPE: BANKING AS A SERVICE MARKET, BY ORGANIZATION SIZE, 2019–2027 (USD MILLION)

TABLE 21 EUROPE: BANKING AS A SERVICE MARKET, BY APPLICATION, 2019–2027 (USD MILLION)

TABLE 22 UK: BANKING AS A SERVICE MARKET, BY TYPE, 2019–2027 (USD MILLION)

TABLE 23 UK: BANKING AS A SERVICE MARKET, BY DEPLOYMENT MODE, 2019–2027 (USD MILLION)

TABLE 24 UK: BANKING AS A SERVICE MARKET, BY ORGANIZATION SIZE, 2019–2027 (USD MILLION)

TABLE 25 UK: BANKING AS A SERVICE MARKET, BY APPLICATION, 2019–2027 (USD MILLION)

TABLE 26 GERMANY: BANKING AS A SERVICE MARKET, BY TYPE, 2019–2027 (USD MILLION)

TABLE 27 GERMANY: BANKING AS A SERVICE MARKET, BY ORGANIZATION SIZE, 2019–2027 (USD MILLION)

TABLE 28 GERMANY: BANKING AS A SERVICE MARKET, BY APPLICATION, 2019–2027 (USD MILLION)

TABLE 29 FRANCE: BANKING AS A SERVICE MARKET, BY TYPE, 2019–2027 (USD MILLION)

TABLE 30 FRANCE: BANKING AS A SERVICE MARKET, BY ORGANIZATION SIZE, 2019–2027 (USD MILLION)

TABLE 31 FRANCE: BANKING AS A SERVICE MARKET, BY APPLICATION, 2019–2027 (USD MILLION)

TABLE 32 REST OF EUROPE: BANKING AS A SERVICE MARKET, BY TYPE, 2019–2027 (USD MILLION)

TABLE 33 REST OF EUROPE: BANKING AS A SERVICE MARKET, BY ORGANIZATION SIZE, 2019–2027 (USD MILLION)

TABLE 34 REST OF EUROPE: BANKING AS A SERVICE MARKET, BY APPLICATION, 2019–2027 (USD MILLION)

TABLE 35 ASIA-PACIFIC: BANKING AS A SERVICE MARKET, BY TYPE, 2019–2027 (USD MILLION)

TABLE 36 ASIA-PACIFIC: BANKING AS A SERVICE MARKET, BY ORGANIZATION SIZE, 2019–2027 (USD MILLION)

TABLE 37 ASIA-PACIFIC: BANKING AS A SERVICE MARKET, BY APPLICATION, 2019–2027 (USD MILLION)

TABLE 38 ASIA-PACIFIC: BANKING AS A SERVICE MARKET, BY REGION, 2019–2027 (USD MILLION)

TABLE 39 CHINA: BANKING AS A SERVICE MARKET, BY TYPE, 2019–2027 (USD MILLION)

TABLE 40 CHINA: BANKING AS A SERVICE MARKET, BY ORGANIZATION SIZE, 2019–2027 (USD MILLION)

TABLE 41 CHINA: BANKING AS A SERVICE MARKET, BY APPLICATION, 2019–2027 (USD MILLION)

TABLE 42 INDIA: BANKING AS A SERVICE MARKET, BY TYPE, 2019–2027 (USD MILLION)

TABLE 43 INDIA: BANKING AS A SERVICE MARKET, BY ORGANIZATION SIZE, 2019–2027 (USD MILLION)

TABLE 44 INDIA: BANKING AS A SERVICE MARKET, BY APPLICATION, 2019–2027 (USD MILLION)

TABLE 45 JAPAN: BANKING AS A SERVICE MARKET, BY TYPE, 2019–2027 (USD MILLION)

TABLE 46 JAPAN: BANKING AS A SERVICE MARKET, BY ORGANIZATION SIZE, 2019–2027 (USD MILLION)

TABLE 47 JAPAN: BANKING AS A SERVICE MARKET, BY APPLICATION, 2019–2027 (USD MILLION)

TABLE 48 REST OF ASIA-PACIFIC: BANKING AS A SERVICE MARKET, BY TYPE, 2019–2027 (USD MILLION)

TABLE 49 REST OF ASIA-PACIFIC: BANKING AS A SERVICE MARKET, BY ORGANIZATION SIZE, 2019–2027 (USD MILLION)

TABLE 50 REST OF ASIA-PACIFIC: BANKING AS A SERVICE MARKET, BY APPLICATION, 2019–2027 (USD MILLION)

TABLE 51 MIDDLE EAST & AFRICA: BANKING AS A SERVICE MARKET, BY TYPE, 2019–2027 (USD MILLION)

TABLE 52 MIDDLE EAST & AFRICA: BANKING AS A SERVICE MARKET, BY ORGANIZATION SIZE, 2019–2027 (USD MILLION)

TABLE 53 MIDDLE EAST & AFRICA: BANKING AS A SERVICE MARKET, BY APPLICATION, 2019–2027 (USD MILLION)

TABLE 54 SOUTH AMERICA: BANKING AS A SERVICE MARKET, BY TYPE, 2019–2027 (USD MILLION)

TABLE 55 SOUTH AMERICA: BANKING AS A SERVICE MARKET, BY ORGANIZATION SIZE, 2019–2027 (USD MILLION)

TABLE 56 SOUTH AMERICA: BANKING AS A SERVICE MARKET, BY APPLICATION, 2019–2027 (USD MILLION)

 

 

LIST OF FIGURES

FIGURE 1 MARKET SYNOPSIS

FIGURE 2 RESEARCH PROCESS OF MRFR

FIGURE 3 TOP-DOWN AND BOTTOM-UP APPROACHES

FIGURE 4 GLOBAL BANKING AS A SERVICE MARKET, BY TYPE, 2019–2027 (USD MILLION)

FIGURE 5 GLOBAL BANKING AS A SERVICE MARKET, BY ORGANIZATION SIZE, 2019–2027 (USD MILLION)

FIGURE 6 GLOBAL BANKING AS A SERVICE MARKET, BY APPLICATION, 2019–2027 (USD MILLION)

FIGURE 7 GLOBAL BANKING AS A SERVICE MARKET, BY REGION, 2019–2027 (USD MILLION)

FIGURE 8 NORTH AMERICA: BANKING AS A SERVICE MARKET, BY COUNTRY, 2019–2027 (USD MILLION)

FIGURE 9 NORTH AMERICA: BANKING AS A SERVICE MARKET, BY TYPE, 2019–2027 (USD MILLION)

FIGURE 10 NORTH AMERICA: Banking as a Service Market, BY ORGANIZATION SIZE, 2019–2027 (USD MILLION)

FIGURE 11 NORTH AMERICA: BANKING AS A SERVICE MARKET, BY APPLICATION, 2019–2027 (USD MILLION)

FIGURE 12 EUROPE: BANKING AS A SERVICE MARKET, BY COUNTRY, 2019–2027 (USD MILLION)

FIGURE 13 EUROPE: BANKING AS A SERVICE MARKET, BY TYPE, 2019–2027 (USD MILLION)

FIGURE 14 EUROPE: Banking as a Service Market, BY ORGANIZATION SIZE, 2019–2027 (USD MILLION)

FIGURE 15 EUROPE: BANKING AS A SERVICE MARKET, BY APPLICATION, 2019–2027 (USD MILLION)

FIGURE 16 ASIA-PACIFIC: BANKING AS A SERVICE MARKET, BY COUNTRY, 2019–2027 (USD MILLION)

FIGURE 17 ASIA-PACIFIC: BANKING AS A SERVICE MARKET, BY TYPE, 2019–2027 (USD MILLION)

FIGURE 18 ASIA-PACIFIC: Banking as a Service Market, BY ORGANIZATION SIZE, 2019–2027 (USD MILLION)

FIGURE 19 ASIA-PACIFIC: BANKING AS A SERVICE MARKET, BY APPLICATION, 2019–2027 (USD MILLION)

FIGURE 20 MIDDLE EAST & AFRICA: BANKING AS A SERVICE MARKET, BY TYPE, 2019–2027 (USD MILLION)

FIGURE 21 MIDDLE EAST & AFRICA: BANKING AS A SERVICE MARKET, BY TYPE, 2019–2027 (USD MILLION)

FIGURE 22 MIDDLE EAST & AFRICA: Banking as a Service Market, BY ORGANIZATION SIZE, 2019–2027 (USD MILLION)

FIGURE 23 MIDDLE EAST & AFRICA: BANKING AS A SERVICE MARKET, BY APPLICATION, 2019–2027 (USD MILLION)

FIGURE 24 SOUTH AMERICA: BANKING AS A SERVICE MARKET, BY TYPE, 2019–2027 (USD MILLION)

FIGURE 25 SOUTH AMERICA: Banking as a Service Market, BY ORGANIZATION SIZE, 2019–2027 (USD MILLION)

FIGURE 26 SOUTH AMERICA: BANKING AS A SERVICE MARKET, BY APPLICATION, 2019–2027 (USD MILLION)

Banking as a Service Market

The global banking as a service market is expected to register a CAGR of 25.4%, registering a market in 2020 during the forecast, 2021–2027.

Segmentation

By Type Api Based Bank As A Service And Cloud Based Bank As A Service
By Organization Size Small & Medium Enterprise And Large Enterprise
By Application Government Banks And Nbfc

Key Players

  • Twilio Inc. (US)
  • Braintree (US)
  • BOKU (US)
  • Coinbase Global Inc.
  • Dwolla (US)
  • Zettle (Sweden)
  • Fidor Bank (Germany)
  • GoCardless (UK)
  • Gemalto (Netherlands)
  • Intuit (US)

Drivers

  • Rise in Demand for Financial Services
  • Growth in the Presence of FinTech Companies
  • High Costs of Adoption.
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Banking as a Service Market Overview:


The global banking as a service market is expected to register a CAGR of ~25.4%, registering a market in 2020 during the forecast, 2021–2027.


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.


COVID-19 Analysis


The outbreak of COVID-19 has not given industries and companies time to prepare or protect themselves from any losses. The market scenario is ambiguous and can go up or down steeply, depending on the actions taken and the results obtained by the organizations. The outbreak has affected numerous industries around the world. It has contributed to either the closure or suspension of their manufacturing operations in most industrial units across the globe. The emergence of the COVID-19 pandemic has had an immense effect on sectors such as aviation, banking, automotive, manufacturing, and food & beverage.


The IT sector has been substantially affected due to the rapid outbreak of COVID-19 across the world. Fluctuating consumer preferences and behavior due to the changing global pandemic scenario has considerably influenced the IT sector over the projected timeframe. For instance, in March 2020, the World Health Organization (WHO) announced the COVID-19 as a global pandemic, resulting in several countries announcing lockdowns. The pandemic has impacted the industries due to the downfall in the manufacturing sector and the shutdown of factories. Short-term disruptions caused accessibility issues and SME/corporate customers to scale back their operations. In addition to SMEs/corporate failures, the prolonged recession increased customer preference for digital channels and products such as insurance. A full-fledged pandemic would result in a large drop in demand from SMEs and corporations, structural modifications in customer behavior, and changes to personnel responsibilities and the entire operating model. A full-fledged pandemic would result in a large drop in demand from SMEs and corporations, structural changes in customer behavior, and changes in personnel responsibilities and the entire operating model. Owing to these factors, the importance of the Internet and advanced technologies has increased across the world.


Market Dynamics


The major factors driving the growth of the banking as a service market are the rise in demand for financial services and the growth in the presence of FinTech companies. However, the high costs of adoption are hindering market growth. However, the rise in demand for embedded finance solutions is expected to create lucrative market growth opportunities.


Drivers



  • Rise in Demand for Financial Services


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 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.


Restraints



  • High Costs of Adoption


The high cost of adoption of this technology for various banking institutions has hampered the expansion of the BaaS business. Smaller banks, which already lack the capacity and capital to adopt new technology, will pay a considerably higher price. For a fully BaaS technology, the bank will need to invest in active IT software and hardware, including cloud services that can simplify BaaS operations. Infrastructure as a Service (IaaS) is another name for cloud services (IaaS). Embedded finance is a term that refers to a seamless transition of financial services to traditionally non-financial services, allowing clients to access financial services while navigating a tangle of apps and third-party services.


Value Chain Analysis


The global banking as a service market has witnessed significant growth in the past decade due to technological changes and is expected to grow at a steady rate in the upcoming years. The value chain analysis of the banking as a service market comprises four major levels: hardware/software providers, cloud vendors/service providers, system integrators, and end users.


Market Segmentation


The global banking as a service market has been segmented based on type, organization size, application, and region.


By type, the banking as a service market has been segmented into API-based Bank-as-a-Service and Cloud-based Bank-as-a-Service.


By organization size, the banking as a service market has been divided into large enterprises and small and medium enterprises.


By application, the banking as a service market has been segmented into government, banks, and NBFC.


The regions included in the study are North America, Europe, Asia-Pacific, the Middle East & Africa, and South America.

Global Banking as a Service Market, 2018–2027 (USD Billion)
Banking As a Service Market 2018-2027
Source: MRFR Analysis


Regional Analysis


Geographically, the banking as a service market has been categorized into North America, Europe, the Asia-Pacific, the Middle East & Africa, and South America. 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.


Growing Use of Internet Banking in Europe to Bolster the Banking as a Service Market


Europe is expected to be the fastest-growing regional market during the forecast period. The regional market has been being segmented into Germany, France, Italy, the UK, and the Rest of Europe. Due to the increased use of online banking, digital payment systems, and financial services in this area, Europe is predicted to grow rapidly in this market throughout the forecast period. According to the Management International Conference 2019, nearly half of adult Europeans (51%) use internet banking. This percentage has been continuously increasing since 2007 when it was 25%. Internet banking is most popular among persons in their twenties and thirties, with 68% of them utilizing it. The use of internet banking grows in lockstep with the level of education of the user. Only 24% of those with a low level of education utilize electronic banking. The use of internet banking grows in lockstep with the level of education of the user. Only 24% of those with a low level of education utilize electronic banking. As cloud technology is used as a repository of data for further analysis, its increased adoption is expected to drive the growth of the banking as a service market.


Competitive Landscape


The global market for banking as a service has witnessed significant growth over the forecast period due to the rise in demand for financial services and growth in the presence of Fintech companies. There are several domestic, regional, and global players operating in the banking as a service market who continuously strive to gain a significant share of the overall market.


Key Players



  • Paypal

  • Moven

  • Solaris Bank


PayPal’s strategy encompasses aiding the business growth through expanding its global capabilities, increasing customer base, and scaling and increasing customers’ use of the company’s products and services by addressing their needs better, managing and moving money as well as expanding the adoption of solutions by new merchants and consumers. It also focuses on expanding value proposition, extending strategic partnerships, seeking new areas through international markets worldwide, and emphasizing innovation in the digital and the physical worlds.


The banking as a service market is characterized by the presence of several regional and local providers. 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).


Recent Developments



  • In September 2020, Solarisbank AG announced a partnership with B2Mobility GmbH, a BP Europa SE subsidiary.

  • In May 2021, Q2, a prominent provider of digital transformation solutions for banking and lending, announced that it formed a partnership with Moven.


Report Overview


This study estimates revenue growth at global, regional, and country levels and offers an overview of the latest developments in each of the sub-sectors from 2019 to 2027. For this analysis, MRFR segmented the global banking as a service market has been segmented based on type, organization size, Application, and region.


By Component



  • API-Based Bank-as-a-Service

  • Cloud-Based Bank-as-a-Service


By Organization Size



  • Small and Medium-Sized Enterprises (SMEs)

  • Large Enterprises


By Application



  • Government

  • Banks

  • NBFC


By Region



  • North America

  • Europe

  • Asia-Pacific

  • Middle East & Africa

  • South America


Objectives of the Study



  • To provide a comprehensive analysis of the banking as a service industry and its sub-segments in the global market, thereby providing a detailed structure of the industry

  • To provide detailed insights into factors driving and restraining the growth of the global banking as a service market

  • To estimate the size of the global banking as a service market where 2019 would be the historical period, 2020 shall be the base year, and 2021 to 2027 will be the forecast period for the study

  • To provide country-wise market value analysis for various segments of the global banking as a service market

  • To provide strategic profiling of key companies (manufacturers and distributors) in the global market and comprehensively analyze their competitiveness/competitive landscape in this market

  • To provide a value chain analysis for the banking as a service market



Report Scope:
Report Attribute/Metric Details
  Market Size   
  CAGR   
  Base Year   2020
  Forecast Period   2021-2027
  Historical Data   2019
  Forecast Units   2020 - USD Billion
  Report Coverage   
  Segments Covered   β€’ By Type (API-Based Bank-as-a-Service and Cloud-Based Bank-as-a-Service) β€’ By Organization Size (Small & Medium Enterprises and Large Enterprises) β€’ By Application (Government, Banks, and NBFC)
  Geographies Covered   β€’ North America (US, Canada, and Mexico) β€’ Europe (UK, Germany, France, and Rest of Europe) β€’ Asia-Pacific (China, Japan, India, and Rest of Asia-Pacific) β€’ Middle East & Africa β€’ South America
  Key Vendors   β€’ Twilio Inc. (US) β€’ Braintree (US) β€’ BOKU (US) β€’ Coinbase Global Inc. β€’ Dwolla (US) β€’ Zettle (Sweden) β€’ Fidor Bank (Germany) β€’ GoCardless (UK) β€’ Gemalto (Netherlands) β€’ Intuit (US) β€’ Square Inc. (US) β€’ PayPal (US) β€’ Prosper Inc. (US) β€’ Solaris Bank (Germany) β€’ Moven (US)
  Key Market Opportunities   
  Key Market Drivers   β€’ Drivers β€’ Rise in Demand for Financial Services β€’ Growth in the Presence of FinTech Companies β€’ Restraint β€’ High Costs of Adoption β€’ Opportunity β€’ Rise in Demand for Embedded Finance Solutions β€’ Impact of COVID-19 β€’ Impact on the IT industry β€’ Impact on IT Expenditure by Organizations β€’ Impact on the Overall Market y-o-y from 2020 to 2027


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Frequently Asked Questions (FAQ) :

The global banking as a service market is predicted to grow at a 25.4% CAGR between 2021- 2027

North America will lead the global banking as a service market.

Growing demand for financial services and increase in FinTech companies are the key factors driving the global banking as a service market growth.

The high cost of adoption of this technology may limit the global banking as a service market growth.

Key contenders profiled in the global banking as a service market include Twilio Inc, Braintree, BOKU, Coinbase Global Inc, Dwolla, Zettle, Fidor Bank, GoCardless, Gemalto, Intuit, Square Inc, PayPal, Prosper Inc, Solaris Bank, and Moven.