PUBLISHER: Allied Market Research | PRODUCT CODE: 1414992
PUBLISHER: Allied Market Research | PRODUCT CODE: 1414992
According to a new report published by Allied Market Research, titled, "Banking-as-a-Service Market," The banking-as-a-service market was valued at $4 billion in 2022, and is estimated to reach $22.6 billion by 2032, growing at a CAGR of 19.3% from 2023 to 2032.
The banking-as-a-service market is driven by the streamlining of financial services. Banking-as-a-service allows companies and financial institutions to contract with specialist service providers to handle certain banking tasks. They can attain operational efficiency and concentrate on their main skills by doing this. Compared to internal operations, BaaS suppliers frequently possess the infrastructure and knowledge necessary to manage these tasks more effectively. Furthermore, the increase in use of digital transformation technology in banks drives the demand for the banking-as-a-service. However, high cost of adoption hampers the expansion of banking-as-a-service markets. Financial institutions are able to compare the costs of deploying BaaS with the expenses associated with developing and maintaining internal solutions. In such a scenario, enterprises believe adopting BaaS to be much more expensive due to which they choose internal alternatives. Furthermore, the increase in cyber-attacks restricts the banking-as-a-service market growth. On the contrary, the banking-as-a-service market benefits from an increase in demand for banking-as-a-service infrastructure to improve the business value. Businesses reach underserved or unbanked populations by providing financial services through the use of BaaS infrastructure. Businesses support financial inclusion objectives, reach a larger customer base, and generate additional revenue by utilizing the capabilities of BaaS providers.
The banking-as-a-service market is segmented on the basis of component, type, enterprise size, end user, and region. On the basis of component, the market is divided into platform and service. By type, it is bifurcated into API-based Bank-as-a-service and cloud-based bank-as-a-service. By end user, it is categorized into banks, fintech corporation/NBFC, and others. On the basis of region, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The report analyses the profiles of key players operating in the banking-as-a-service market such as Banco Bilbao Vizcaya Argentaria, Block, Inc, Bnkbl Ltd, ClearBank Ltd, Green Dot, MatchMove Pay Pte Ltd, Solaris SE., Starling Bank, Stripe, Inc., and Treasury Prime. These players have adopted various strategies to increase their market penetration and strengthen their position in the banking-as-a-service market.