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Banking-as-a-Service (BaaS) Platform Market: Top Trends and industry overview to watch for in [2021-2031]

According to Future Market Insights (FMI’s) analysis of the banking-as-a-service (BaaS) platform market, the market’s recorded demand will expand at a rapid CAGR of 15.7% between 2021 and 2031.

The analysis predicts that the market will be worth more than US$ 2.8 billion by the end of 2021. According to FMI, platforms that provide banking as a service now have more options thanks to the availability of application programming interfaces (APIs) and the quick advancement of technology (BaaS). The development of these technologies is now essential for boosting economic competitiveness, which drives market expansion.

BaaS has emerged over the past few years as a fresh and inventive way for banks and third parties to work together to offer customers digital-only banking products and services as well as improved customer experiences. BaaS has significantly improved collaboration between banks and third parties and benefits both established players in the financial services sector and newcomers.

Customers now have better digital experiences thanks to increased innovation brought on by increased competition in the banking industry. In terms of the financial services and products they use, customers now have more options than ever before.

Key Takeaways: Banking-as-a-Service (BaaS) Platform Market

  • By solution, the banking-as-a-service platform segment is anticipated to account for the leading share in the global demand for banking-as-a-service (BaaS) platforms during the forecast period. However, the banking as a service APIs segment is estimated to grow at a robust CAGR of 17.1% through 2031.
  • By enterprise size, the integration of the BaaS platforms in small & mid-sized organizations is anticipated to increase at a CAGR of 16.6% between 2021 & 2031, while large organizations are currently dominating the market share.
  • The adoption of the banking-as-a-service (BaaS) platforms by fintech corporations is expected to rise at a maximum pace. As per FMI, demand in this segment will increase by a CAGR of 18.2% between 2021 and 2031.
  • Europe is expected to lead the market followed by North America in 2021. South Asia & Pacific is anticipated to emerge as the fastest growing region between 2021 & 2031.
  • The market in Japan is expected to progress at a CAGR of 17.9% through 2031.
  • In the U.K., sales are expected to increase at a CAGR of close to 16% over the next ten years.

COVID-19 Impact Analysis on Banking-as-a-Service (BaaS) Platform Market

Due to remote working and social isolation, which have helped digital banking amass a sizable customer base, the COVID-19 outbreak has resulted in increased usage of banking components. A turning point in digital transformation has been COVID-19 because financial institutions that made strategic and financial investments in the digitalization process over the past ten years were better equipped to deal with these changes and the crisis.

The market has previously experienced significant growth, but due to the unexpected COVID-19 outbreak and the rising demand for seamless banking transactions, the market will experience even more growth in 2020. This growth will be primarily fueled by shifting consumer behavior, as more people are turning to online banking instead of visiting bank branches.

Due to several factors, including the rising use of electronic transactions during pandemic crises, and to enable stress-free banking activities, the implementation of a banking-as-a-service (BaaS) platform would be extremely valuable during the COVID-19 period.

A 2020 World Bank survey found that the fintech market, with strong growth in all categories of digital financial services except lending, has continued to support increasing access to financial services during the COVID-19 pandemic, particularly in emerging markets. In H1 2020 compared to H1 2019, Fintech companies reported an average increase of 11% in the volume of digital payment transactions. Fintech innovations are making it possible to reach more people, lower the cost of providing services, and lessen the need for face-to-face interactions, all of which are crucial for maintaining economic activity during the pandemic.

As a result, it is predicted that from 2019 to 2021, the demand for banking-as-a-service (BaaS) platforms will increase by 11.6% to 13.8% YoY.

Banking-as-a-Service (BaaS) Platform Outlook by CategoryBy Solution:


  • Banking as a Service Platform
  • Banking as a Service APIs
  • Services
    • Payment Processing Services
    • Digital Banking Services
    • KYC Services
    • Customer Support Services
    • Others

By Enterprise Size:

  • Small & Mid-sized Organizations
  • Large Organizations

By End User:

  • Banks
  • FinTech Corporations
  • Investment Firms
  • Others

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