Banking as A Service Market is expected to reach USD 3863.91 Billion by 2030

Sep 2023


As per the report published by Kings Research, the Global Banking as A Service Market was valued at USD 540.86 Billion in 2022 and is projected to reach USD 3863.91 Billion by 2030, growing at a CAGR of 28.78% from 2023 to 2030.

Heightened competition, rising costs, an increasingly sophisticated customer base, and more players entering the fray have driven substantial innovation in the financial sector. Capitalizing on technological advancements, financial institutions are now able to offer increasingly efficient and profitable services, products, and market prospects, with a growing focus on internet banking as the primary vehicle for realizing such gains. This trend has brought about significant transformations in bank services, spurring new product development, and the introduction of information-intensive business management systems. Such developments have fueled the rise of Banking as a Service, driving industry expansion.

Key Insights

  • Based on the enterprise, the large enterprise segment is growing at the fastest CAGR of 28.86% from 2023 to 2030
  • Based on end user, the banks segment generated the highest revenue of USD 312.6 million in 2022
  • On the basis of region, Europe accounted largest market share of 37.73% in 2022

FIS has launched its Modern Banking Platform on the Microsoft Azure cloud platform, enabling financial institutions

April 2022: FIS launched its Modern Banking Platform on the Microsoft Azure cloud platform, enabling financial institutions in several markets, including the UK, Thailand, and New Zealand, to enhance its digital online banking services.

SAP Fioneer Joint Venture with Dediq GmbH to Revolutionize Financial Service Software Solutions for Banking and Insurance Industries

September 2021: SAP SE's joint venture with Dediq GmbH, named SAP Fioneer, aims to expand the company's financial service software solutions for the dynamic banking and insurance industries. With over 800 of the world's top 1,000 banks and insurance companies as its customers, SAP Fioneer plans to offer innovative solutions to meet changing demands.

Increasingly Implemented Innovative Marketing Strategies are Propelling the Market Growth

The Banking as a Service (BaaS) market is made up of a mixture of small private businesses and key players such as BBVA and Solaris Bank. To gain a competitive edge, market players have increasingly implemented innovative marketing strategies. In addition to marketing financial services among higher-income groups, these companies have adopted pricing policies that cater to middle-income groups.

For example, a BaaS provider may offer a low-cost digital banking solution that appeals to younger generations, who have grown up with technology and are more likely to be comfortable conducting financial transactions online. Other examples of innovative techniques might include targeted advertising through social media platforms or incentives such as cashback rewards for using a specific banking product or refer-a-friend bonuses.

Finastra Collaborates with Microsoft to Transform Banking-as-a-Service (BaaS) Solutions for SMEs, Driving Gigantic Growth in Asia Pacific Market Due to Increasing Awareness of its Benefit

The Asia Pacific region is projected to experience the highest compound annual growth rate (CAGR) of 31.59% from 2023 to 2030. In 2022, Europe dominated the largest market share in terms of revenue. For example, in April 2022, Finastra, a U.K.-based company, announced a collaboration with Microsoft to offer banking-as-a-service (BaaS) solutions for small and medium-sized enterprises (SMEs), resulting in a streamlined and accessible financing experience for SME owners. The growth of the BaaS market in the Asia Pacific region can be attributed to rising awareness of the benefits of BaaS in China, India, and Japan, as well as numerous initiatives by organizations worldwide to promote BaaS in the region.

Market Players Concentrating on Innovative Product Launches to Drive Market Development

The market is fragmented with key players such as Solaris SE, Currencycloud, Bnkbl Ltd trading as Bankable., Prime Treasury Services PTY. LTD, Green Dot Corporation, MatchMove Pay Pte Ltd, PayPal Holdings, Inc., Sopra Banking Software, Treezor, and Twilio Inc., among others. Companies are employing a variety of strategic measures such as acquisitions, mergers, partnerships, product introductions, and collaborations to expand their business globally and enhance their competitive position.

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