Banking-as-a-Service (BaaS) Platform Market

Banking-as-a-Service (BaaS) Platform Market Analysis and Review by Solution, Enterprise Size, and End User for 2021 – 2031

Banking-as-a-Service (BaaS) Platform Industry Snapshot

[323 Pages] The banking-as-a-service (BaaS) platform market revenue totaled ~US$ 2.5 Bn in 2020, according to Future Market Insights (FMI). The overall market is expected to reach ~US$ 12.2 Bn by 2031, growing at a CAGR of 15.7% for 2021 – 31.

The banking-as-a-service (BaaS) platform market growth will continue to accelerate, increasing competition prevalent in the market. FMI has forecast the top 5 providers to account for around 48.0% of total market in 2020.

Base year (2020) Market Value

US$ 2.5 Bn

Projected year (2031) Market Value

US$ 12.2 Bn

CAGR% (2021-2031)


2016-2020 Banking-as-a-Service (BaaS) Platform Demand Outlook Compared to 2021-2031 Forecast

BaaS is an end-to-end model that allows digital banks and other third parties to connect with banks’ systems directly via APIs so they can build banking offerings on top of the providers’ regulated infrastructure, as well as unlock the open banking opportunity, reshaping the global financial services landscape.

A number of countries have already begun introducing open banking regulations, indicating that the financial services industry is moving toward an era where shared data and infrastructure will become consumers’ new expectations.

Tech-savvy legacy banks that create their own BaaS platforms now will not only get ahead of the open banking opportunity before their competitors, but also unlock a new stream of revenue by monetizing their platforms.

The banking-as-a-service (BaaS) platform demand is estimated to rise at 15.7% CAGR between 2021 and 2031 in comparison with 11.8% CAGR registered during 2016-2020.

Banking-as-a-Service (BaaS) systems have emerged as a core component of open banking, in which banks open their application programming interfaces (APIs) for third parties to create new services, giving account holders more financial transparency choices. This technology is transforming retail banking, reshaping incumbents' relationships with customers, and easing entry for fintechs.

The global Banking-as-a-Service (BaaS) Platform market is anticipated to witness an increase in revenue from ~US$ 2.8 Bn in 2021 to ~US$ 12.2 Bn by 2031

How is Rising Adoption of Digital Banking Services Affecting Demand for Banking-as-a-Service (BaaS) Platform?

Digital banking or Digitalization of a bank has radically altered the landscape of banking in the last few years. Digital technologies which were initially limited to banking channels, now encompass the entire core banking solution spectrum. Whether it is back-end operations or customer facing channels, digital banking delivered through new-age technologies is the way forward for all participants in the financial service industry.

The current wave of digital transformation is being driven by newer technologies such as Artificial Intelligence, Robotic Process Automation, Blockchain, API Banking, and Internet of Things which have the potential to dramatically alter the banking landscape. These technologies, when harnessed together, will be able to provide much deeper levels of personalization and enhanced customer experience, transform the banking operations, changing the very essence of how the banking industry operates today.

In addition, increasing awareness regarding the internet banking is also driving the growth of BaaS market. As customers are using internet banking to access a variety of services, including 24-hour banking, cash transfers, balance checks, account statements and online purchases, providing these services is undoubtedly more reliable.

What Is the Impact of COVID-19 Crisis on Banking-as-a-Service (BaaS) Platform Growth?

COVID-19 pandemic has impacted every sector. Due to social distancing norms implemented to contain the spread of the virus, organizations are transforming towards digitalization to ensure overall safety employees and staffs.

The pandemic is likely to spur a widespread and systematic revamping of high-impact digital journeys in the banking sector, such as customer onboarding and product origination, to deliver a truly outstanding digital experience to their customers.

Digital onboarding raced up the priority list in financial services with the dramatic shift to remote work. With no end in sight to this new abnormal, fintechs must carefully review their digital plans to ensure they have the capabilities they need to digitally onboard customers across markets, products, and segments. Leading BaaS platforms incorporate digital onboarding capabilities that are proven to free up staff time, accelerate turnaround, slash costs, reduce errors, and enhance the onboarding experience.

Moreover, the increasing work-from-home scenario amid global lockdowns due to COVID-19 outbreak is generating a strong demand for banking-as-a-service (BaaS) platform worldwide.

Thus, the banking-as-a-service (BaaS) platform is estimated to witness a noteworthy growth from around 12% to 14% Y-o-Y from 2019 to 2021.

Country-wise Insights

How big is the Opportunity for Adoption of Banking-as-a-Service (BaaS) Platform in the U.K.?

Europe is predicted to remain one of the most attractive markets during the forecast period. According to the study, U.K. is expected to account for nearly 29% of the Europe market share through 2031.

The UK is the largest market for banking-as-a-service (BaaS) platform due to the strong presence of banking-as-a-service (BaaS) platform providers. Digital banking ecosystems are beginning to flourish in the UK. Early legislation and adoption of open banking, and the subsequent rise of fintech disruptors, means the UK has had a head start in a number of areas at digital, at least when it comes to the Western world.

One reason for the UK’s accelerated adoption of innovative financial technology could be that more incumbent banks and financial services companies have begun to offer fintech products directly to consumers. As more traditional financial institutions in the UK partner with fintechs, the country is positioned to supply its customers with world-leading digital services in banking that other regions are yet to experience.

Hence, the demand for banking-as-a-service (BaaS) Platform would increase across the country, during the forecast period.

Why is Demand for Banking-as-a-Service (BaaS) Platform Increasing in the U.S.?

The banking-as-a-service (BaaS) platform demand in the U.S. is expected to rise at an impressive CAGR of around 15% over the forecast period. The U.S. economy is increasingly powered by big data, platform business models, advanced analytics, smartphone technology and peer-to-peer networks. At the same time, innovation in the financial sector is dramatically changing the markets.

The demand for banking-as-a-service (BaaS) platform is drastically growing in the U.S. owing to the growing financial market and increased growth of insurance sectors in the country. Over the past few years, digital banking in the U.S. has experienced a significant level of transformation and growth, with over 70 digital banking platforms launched since 2018, which is in turn propelling the growth of BaaS platform in the country.

How will the Sales Prospects for Banking-as-a-Service (BaaS) Platform Solutions unfold in India?

The sales in India is estimated to increase at an impressive rate of around 26% CAGR between 2021 and 2031. While COVID dramatically impacted traditional banking, it has also helped digital banking to gain rapid acceptance. Meanwhile, Indian FinTechs are flourishing and touching almost every banking value proposition.

In India, Yes Bank and RBL Bank pioneered BaaS in 2013 by opening several APIs to developers. Currently, in India, API offerings exist from all major private banks like HDFC, ICICI, and Kotak, while multiple BaaS FinTech startups like Zeta, Setu, and Yap are growing rapidly with increased funding.

Furthermore, the advent of open banking in India, will further catalyze componentization, which in turn will result in increased inter-bank and fintech collaborations in the future.

Category-wise Insights

Why is the Demand for Banking as a Service APIs Projected to Increase?

Based on solution, banking as a service APIs is expected to increase with a robust CAGR of nearly 17% over the forecast period. Application programming interfaces (APIs) have emerged as a lifesaving device for banks by simplifying their digital transitions and permitting swifter pivots and innovations. With API’s intervention, FinTechs and other third-party service providers (TPSP) can help banks offer customers a transparent, smooth, and customized financial service along with the existing banking services.

The fintechs are given secured access to banking services followed by integrating bank’s APIs with the provider’s products to further execute seamless white-label banking services using upgraded technology. This is further estimated to drive the BaaS platform sales in the coming years.

Why is the Adoption of Banking-as-a-Service (BaaS) Platform Mostly Preferred in Large Organizations?

The large organizations segment accounted for more than 50% of the overall market share in 2020, and is expected to continue its dominance during the forecast period. This growth is attributable to the emerging trend of digitalization to adopt advanced and more sophisticated service platforms by large multinational banks and fintechs around the world.

Moreover, the increasing preference among organizations for efficient service platforms and automation capabilities is expected to drive the demand for BaaS platforms in the large organizations segment.

How will Demand from FinTech Corporations Support Growth?

The fintech corporations segment is expected to contribute a revenue share of close to 26% in 2021, and is expected to showcase a strong CAGR growth over the upcoming years owing to rapid digitization. As the fintech market boomed, so too did business for the banking-as-a-service companies that helped startups interact with banks.

Many people in the fintech sector now see a new chance for banking-as-a-service to grow in embedded finance — where non-fintech companies add credit or debit cards, loans or other financial services to their products. This has led to creation of new growth avenues for fintech corporations in the BaaS platform industry.

Competitive Landscape

Maximum number of leading players in the banking-as-a-service (BaaS) platform industry are coming with advanced and innovative solutions that meets the ever-changing demand from various organizations. In addition, several multinational companies and banking firms are acquiring fintech start-ups to develop their own omnichannel digital banking products to serve their customers and reduce the churn rate.

  • For instance, in January 2021, Sopra Steria, a European leader in digital transformation, announced via its subsidiary Sopra Banking Software, the acquisition of Fidor Solutions, the software subsidiary and digital banking specialist of next-generation bank Fidor Bank. This acquisition would significantly accelerate the pace of development and marketing of Sopra Banking Software’s digital solutions, in particular by augmenting the user features offered to banks through its Digital Banking Engagement Platform (DBEP) solutions.

Scope of Report



Market value in 2021

US$ 2.8 Bn

Market CAGR 2021 to 2031


Share of top 5 players

Around 45%

Forecast Period


Historical Data Available for


Market Analysis

USD Million for Value

Key Regions Covered

North America, Latin America, Europe, East Asia, South Asia & Pacific, and the Middle East & Africa

Key Countries Covered

US, Canada, Germany, U.K., France, Italy, Spain, Russia, China, Japan, South Korea, India, Malaysia, Indonesia, Singapore, Australia & New Zealand, GCC Countries, Turkey, North Africa and South Africa

Key Segments Covered

Solution, Enterprise Size, End User, and Region

Key Companies Profiled

Report Coverage

Market Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives

Customization & Pricing

Available upon Request

Key Points Covered in Banking-as-a-Service (BaaS) Platform Market Survey

  • Which region is expected to showcase high growth in banking-as-a-service (BaaS) platform demand?

    South Asia & Pacific is projected to register strong growth in the market, exhibiting a CAGR of nearly 21% during the forecast period. However, Europe currently leads the global market, with market share of around 30% in 2021.  

  • Who are some of the leading companies offering banking-as-a-service (BaaS) platform?

    Some of the leading companies in this landscape are Sterling National Bank, BBVA S.A., Green Dot Corporation, and Starling Bank among others. As per Future Market Insight, nearly 45%-50% of the market share is currently covered by the top 15 players.

  • Who are the leading end users of banking-as-a-service (BaaS) platform? 

    Banks segment is expected to dominate the market over the forecast period, generating a maximum revenue, among all end users, by the end of 2021. However, the FinTech Corporations segment is estimated to boost majorly with a CAGR of over 18% during the forecast period.

  • How much is the global banking-as-a-service (BaaS) platform market worth?

    The banking-as-a-service (BaaS) platform industry was valued at ~US$ 2.5 Bn in 2020, and is estimated to grow at an exceptional pace with a CAGR of 15.7% to reach ~US$ 12.2 Bn in 2031.

  • What will be the demand outlook/ sales forecast for banking-as-a-service (BaaS) platform?

    The sales of banking-as-a-service (BaaS) platform solutions are expected to total ~US$ 2.8 Bn by the end of 2021, and is likely to reach ~US$ 12.2 Bn by 2031.

  • What was the last 5 year market CAGR?

    The market in last 5 years (2016 – 2020) grew by a CAGR of 11.8%.

  • What are the key trends of banking-as-a-service (BaaS) platform industry?

    Key trends in the market includes:

    • Rapid Shift towards Embedded Finance
    • Increasing Demand for Real-Time Processing & Omni-Channel Payments
    • Adoption of Smarter Technologies for Industry Focused Applications
  • What is driving demand for banking-as-a-service (BaaS) platform?

    Changing levels of financial services and increasing customer demand for integrated experience has increased the adoption of banking-as-a-service (BaaS) platform and are the key factors driving the market growth.

  • Which countries are key providers of banking-as-a-service (BaaS) platform?

    Countries involved in providing banking-as-a-service (BaaS) platform include the France, Germany, U.K., Spain, and U.S.

  • What is the Global Market Growth Between 2020 and 2021?

    The global market growth between 2020 and 2021 is 13.8%.

  • What are the top 5 countries driving demand?

    Top 5 countries driving demand for banking-as-a-service (BaaS) platform include the India, China, U.S., and Malaysia.

  • What is Europe market outlook?

    Europe is predicted to remain one of the most attractive markets during the forecast period, according to Future Market Insights. According to the study, U.K. is expected to account for nearly 29% of the Europe market through 2031.

  • How the Europe banking-as-a-service (BaaS) platform industry growth will unfold?

    The banking-as-a-service (BaaS) platform industry in Europe is estimated to expand 3.0X over the forecast period.

  • What is the key market statistics in South Korea and Japan?

    The banking-as-a-service (BaaS) platform demand in Japan and South Korea was valued at ~US$ 150 Mn and ~US$ 78 Mn in 2020, respectively and is projected to register CAGR of around 18% and 16% respectively between 2021 and 2031.

Banking-as-a-Service (BaaS) Platform Outlook by Category

By 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

By Region:

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Pacific
  • Middle East and Africa (MEA)

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