New York, US, Jan. 10, 2022 (GLOBE NEWSWIRE) — Market Overview:
According to a comprehensive research report by Market Research Future (MRFR), “Banking as a Service Market information by Type, by Organization Size, by Application and Region – forecast to 2027” market size to grow at a compound annual growth rate of 25.4% by 2027.
BaaS Market Scope:
The growing adoption of BaaS financial services will offer robust opportunities for the market over the forecast period. The rising use of financial services like portfolio management, capital restructuring, tax/audit consultation, treasury/debt instruments, stock exchange, insurance, mutual funds, wealth management, professional counseling, and banking indicates the growing use of digital transactions in banking.
Besides, the increasing adoption of BaaS platform with fintech corporations, increasing reliance on mobile banking and digital payments among consumers, and different benefits that BaaS models offers to customers, fintech players, and banks such as increased customer insights, cost-saving initiative, and increased revenue. BaaS models enables banks in using APIs for sharing data with third-party financial institutions for increasing their source of revenue. These are also adding market growth.
Dominant Key Players on Banking as a Service Market Covered 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)
- Moven (US)
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Market USP Exclusively Encompassed:
BaaS Market Drivers
The growing awareness about internet banking will boost market growth over the forecast period as these services are undoubtedly more reliable. Due to this customers are using internet banking for accessing different services which includes online purchases, account statements, balance checks, cash transfers, and 24-hour banking, among others. Besides, the integration of API services, block-chain technology, and artificial intelligence is also boosting the demand.
High Cost of Technology to act as Market Restraint
The high cost of adoption of banking as a service solution for different banking entities may remain as a market restraint in the forecast period. The cost is more in case of smaller banks that already lack capital and resources for adopting a new technology.
Rise in Cyber-attack to act as Market Challenge
The rise in cyber-attack on personal banking information may act as a market challenge over the forecast period.
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Segmentation of Market Covered in the Research:
The banking as a service market is bifurcated based into type, organization size, and application.
By type, the API-based bank as a service segment will lead the market over the forecast period.
By organization size, the large enterprises will dominate the market over the forecast period.
By application, the banks segment will spearhead the market over the forecast period.
North America to Dominate Banking as a Service Market
North America will dominate the banking as a service market over the forecast period. Faster adoption of fintech technologies in developed countries like Mexico, Canada, and the US, the region being the most technologically advanced regions, the presence of several key market players such as Greendot Corporation (US), Paypal (US), Moven (US), and Square Inc. (US), and the increasing use of new financial services like online money transfers, peer to peer transfers, and mobile payments that offer customers with improved banking experience are adding to the global banking as a service market growth in the region.
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Europe to Have Admirable Growth in Banking as a Service Market
Europe will have admirable growth in the banking as a service market over the forecast period. Increasing utilization of mobile applications for banking transactions, customers in the region adopting advanced technologies such as APIs that offer them an improved online presence across different channels, and banks in the region focusing more on customer experience management by providing new services and products to cater to their expectations are adding to the global banking as a service market growth in the region.
COVID-19 Impact on the Global Banking as a Service Market
During the pandemic, people have increasingly adopted e-commerce platform solutions that cause a rise in online payment technology. Ever since the pandemic, financial institutes have shown immense interest in banking as a service for improving business processes and provide secure contactless payments. The flare-up of the pandemic has prompted more use of banking parts as social separating and remote working have helped computerized banking gain a colossal client base. The COVID-19 pandemic has been a pivotal turning point for advanced change because monetary foundations that put monetarily and deliberately in the digitalization interaction in the previous decade have been more ready for exploring these movements and react to the emergency. Rapid proliferation of WFH and growing reliance on digital payments as well as online banking is motivating key players for implementing block-chain and AI technology for delivering secure services to customers. This is amplifying sales in the market.
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