Global Banking-as-a-Service Market
The global Banking-as-a-Service market was valued at USD 22.49 billion in 2021 which expected to reach USD 73.55 billion by 2027 at a CAGR 8.53%from 2021-2027.
Banking-as-a-Service (BaaS) is the end-to-end process by which third parties such as FinTech, developers, non-FinTech, and so on grant them access to and use financial services capabilities. The usage of a BaaS platform allows these companies to utilise its services without having to develop them themselves. The key players who use BaaS include incumbent financial organisations and service providers who grant non-banking finance organisations, such as Fintech companies, clear access to customer data, core systems, licencing, and functionality with the goal of integrating digital banking and payment services into their own products.
Market Drivers
Increased Use of Digital Transformation Technology in Financial Institutions
The process of transforming data or information into a digital representation using advanced technology is known as digitization. It plays an extremely essential role in the banking sector, owing to the growing requirement among banks to provide increased client services and improve customer security. Additionally, banking-as-a-service BaaS also enables banks to provide digital payment services to their consumers while saving time on the debt collection process, accelerating industry growth.
.Impact of COVID-19
The COVID-19 pandemic has expedited the transition to digital banking. Prior to the pandemic, digital banking was a critical component of retail banking, but clients have been transferring online in considerably greater numbers throughout the outbreak. Nonbank financial institutions are increasingly offering financial services such as bank accounts or digital wallets, lending, and payments. Accepting embedded finance from nonbanks aims to retain clients, producing a positive picture for the business that bodes well for its expansion.
Market Segmentation
The Global Banking-as-a-Service Market is segmented into Component, Product Type Enterprise Size, and End-use. Based on the Enterprise Size, the market is segmented into Large Enterprises, Small & Medium Enterprises. Further, market is segmented into The End-use, the market is segmented into Banks, NBFC, Government, Others. By Product Type, the market is segmented into API-Based Banking-as-a-Service, Cloud-Based Banking-as-a-Service
Regional Analysis
Global Banking-as-a-Service Market is segmented into five regions such as North America, Latin America, Europe, Asia Pacific, and Middle East & Africa. North America has the largest market share. The expansion is attributable to the efforts of regional technology businesses, such as PayPal Holdings, Inc. and Green Dot Bank, among others, to build the BaaS industry. For example, Finastra, a UK-based startup, announced a BaaS relationship with Microsoft in April 2022 to provide alternative lending solutions to Small and Medium Enterprises (SMEs). Through this agreement, SME owners can easily and quickly obtain relevant and valuable company funding.
Asia Pacific is expected to grow at the fastest rate. The rapid expansion of this region can be ascribed to a surge in knowledge of the benefits of BaaS in countries such as China, India, and Japan. Various activities by organisations around the world to promote BaaS in Asia Pacific are also expected to boost the region's growth. For example, in July 2022, Finastra announced that it would provide HSBC's Foreign Exchange (FX) services to mid-tier banks in the Asia Pacific (APAC) area via its FusionFabric.cloud platform via a BaaS experience.
Key Players
Various key players are listed in this report such as Green Dot Bank; Solarisbank AG; PayPal Holdings, Inc.; Fidor Solutions AG; Moven Enterprise; The Currency Cloud Ltd.; Bnkbl Ltd.; MatchMove Pay Pte Ltd.; Block, Inc..
Market Taxonomy
By Component
By Product Type
By Enterprise Size
By End-use
By Region
Key Questions Addressed by the Report
Global Banking-as-a-Service Market TOC
1 Introduction
1.1 Objective of the Study
1.2 Market definition
1.3 Market Scope
2 Research Methodology
2.1 Data Mining
2.2 Validation
2.3 Primary Interviews
2.4 List of Data Sources
3 Executive Summary
4 Global Banking-as-a-Service Market Outlook
4.1 Overview
4.2 Market Dynamics
4.2.1 Drivers
4.2.2 Restraints
4.2.3 Opportunities
4.3 Porters Five Force Model
4.4 Value Chain Analysis
5 Global Banking-as-a-Service Market, By Component
5.1 Y-o-Y Growth Comparison, By Component
5.2 Global Banking-as-a-Service Market Share Analysis, By Component
5.3 Global Banking-as-a-Service Market Size and Forecast, By Component
5.3.1 Platform
5.3.2 Services
6 Global Banking-as-a-Service Market, By Product Type
6.1 Y-o-Y Growth Comparison, By Product Type
6.2 Global Banking-as-a-Service Market Share Analysis, By Product Type
6.3 Global Banking-as-a-Service Market Size and Forecast, By Product Type
6.3.1 API-Based Banking-as-a-Service
6.3.2 Cloud-Based Banking-as-a-Service
7 Global Banking-as-a-Service Market, By Enterprise Size
7.1 Y-o-Y Growth Comparison, By Enterprise Size
7.2 Global Banking-as-a-Service Market Share Analysis, By Enterprise Size
7.3 Global Banking-as-a-Service Market Size and Forecast, By Enterprise Size
7.3.1 Large Enterprises
7.3.2 Small & Medium Enterprises
8 Global Banking-as-a-Service Market, By End-use
8.1 Y-O-Y Growth Comparison, By End-use
8.2 Global Banking-as-a-Service Market Share Analysis, By End-use
8.3 Global Banking-as-a-Service Market Size and Forecast, By End-use
8.3.1 Banks
8.3.2 NBFC
8.3.3 Government
8.3.4 Others
9 Global Banking-as-a-Service Market, By Region
9.1 Global Banking-as-a-Service Market Share Analysis, By Region
9.2 Global Banking-as-a-Service Market Share Analysis, By Region
9.3 Global Banking-as-a-Service Market Size and Forecast, By Region
10 North America Banking-as-a-Service Market Analysis and Forecast (2021-2027)
10.1 Introduction
10.2 North America Banking-as-a-Service Market Share Analysis, By Component
10.3 North America Banking-as-a-Service Market Size and Forecast, By Product Type
10.4 North America Banking-as-a-Service Market Size and Forecast, By Enterprise Size
10.5 North America Banking-as-a-Service Market Size and Forecast, By End-use
10.6 North America Banking-as-a-Service Market Size and Forecast, By Country
10.7.1 U.S.
10.7.2 Canada
10.7.3 Mexico
11 Europe Banking-as-a-Service Market Analysis and Forecast (2021-2027)
11.1 Introduction
11.2 Europe Banking-as-a-Service Market Share Analysis, By Component
11.3 Europe Banking-as-a-Service Market Size and Forecast, By Product Type
11.4 Europe Banking-as-a-Service Market Size and Forecast, By Enterprise Size
11.5 Europe Banking-as-a-Service Market Size and Forecast, By End-use
11.6 Europe Banking-as-a-Service Market Size and Forecast, By Country
11.6.1 Germany
11.6.2 France
11.6.3 UK
11.6.4. Rest of Europe
12 Asia Pacific Banking-as-a-Service Market Analysis and Forecast (2021-2027)
12.1 Introduction
12.2 Asia Pacific Banking-as-a-Service Market Share Analysis, By Component
12.3 Asia Pacific Banking-as-a-Service Market Size and Forecast, By Product Type
12.4 Asia Pacific Banking-as-a-Service Market Size and Forecast, By Enterprise Size
12.5 Asia Pacific Banking-as-a-Service Market Size and Forecast, By End-use
12.6 Asia Pacific Banking-as-a-Service Market Size and Forecast, By Country
12.6.1 China
12.7.2 Japan
12.8.3 India
12.9.4. Rest of Asia Pacific
13 Latin America Banking-as-a-Service Market Analysis and Forecast (2021-2027)
13.1 Introduction
13.2 Latin America Banking-as-a-Service Market Share Analysis, By Component
13.3 Latin America Banking-as-a-Service Market Size and Forecast, By Product Type
13.4 Latin America Banking-as-a-Service Market Size and Forecast, By Enterprise Size
13.5 Latin America Banking-as-a-Service Market Size and Forecast, By End-use
13.6 Latin America Banking-as-a-Service Market Size and Forecast, Country
13.7.1. Brazil
13.8.2. Rest of Latin America
14 Middle East Banking-as-a-Service Market Analysis and Forecast (2021-2027)
14.1 Introduction
14.2 Middle East Banking-as-a-Service Market Share Analysis, By Component
14.3 Middle East Banking-as-a-Service Market Size and Forecast, By Product Type
14.4 Middle East Banking-as-a-Service Market Size and Forecast, By Enterprise Size
14.5 Middle East Banking-as-a-Service Market Size and Forecast, By End-use
14.6 Middle East Banking-as-a-Service Market Size and Forecast, By Country
14.7.1. Saudi Arabia
14.8.2. UAE
14.9.3. Egypt
14.10.4. Kuwait
14.11.5. South Africa
15Competitive Analysis
15.1 Competition Dashboard
15.2 Market share Analysis of Top Vendors
15.3 Key Development Strategies
16 Company Profiles
16.1 Green Dot Bank
16.1.1 Overview
16.1.2 Offerings
16.1.3 Key Financials
16.1.4 Business Segment & Geographic Overview
16.1.5 Key Market Developments
16.1.6 Key Strategies
16.2. Solarisbank AG
16.2.1 Overview
16.2.2 Offerings
16.2.3 Key Financials
16.2.4 Business Segment & Geographic Overview
16.2.5 Key Market Developments
16.2.6 Key Strategies
16.3. PayPal Holdings, Inc
16.3.1 Overview
16.3.2 Offerings
16.3.3 Key Financials
16.3.4 Business Segment & Geographic Overview
16.3.5 Key Market Developments
16.3.6 Key Strategies
16.4 Fidor Solutions AG
16.4.1 Overview
16.4.2 Offerings
16.4.3 Key Financials
16.4.4 Business Segment & Geographic Overview
16.4.5 Key Market Developments
16.4.6 Key Strategies
16.5 Moven Enterprise
16.5.1 Overview
16.5.2 Offerings
16.5.3 Key Financials
16.5.4 Business Segment & Geographic Overview
16.5.5 Key Market Developments
16.5.6 Key Strategies
16.6 The Currency Cloud Ltd
16.6.1 Overview
16.6.2 Offerings
16.6.3 Key Financials
16.6.4 Business Segment & Geographic Overview
16.6.5 Key Market Developments
16.6.6 Key Strategies
16.7 Bnkbl Ltd
16.7.1 Overview
16.7.2 Offerings
16.7.3 Key Financials
16.7.4 Business Segment & Geographic Overview
16.7.5 Key Market Developments
16.7.6 Key Strategies
16.8 MatchMove Pay Pte Ltd
16.8.1 Overview
16.8.2 Offerings
16.8.3 Key Financials
16.8.4 Business Segment & Geographic Overview
16.8.5 Key Market Developments
16.8.6 Key Strategies
16.9 Block, Inc
16.9.1 Overview
16.9.2 Offerings
16.9.3 Key Financials
16.9.4 Business Segment & Geographic Overview
16.9.5 Key Market Developments
16.9.6 Key Strategies
