Banking-as-a-Service (BaaS) Platform Industry Analysis in Western Europe
Adoption Outlook of Banking-as-a-Service (BaaS) Platform in Western Europe, by Platform, APIs, and Service, 2024 to 2034
Fintech Landscape Reshaped by the Growing Influence of Banking-as-a-Service Platform in Western Europe, Paving the Way for Financial Transformation and Customer-centric Services
Navigating the Evolution of Banking-as-a-Service (BaaS) Platform in Western Europe from 2024 to 2034
In 2024, the demand for banking-as-a-service (BaaS) platform in Western Europe is expected to reach a total of US$ 984.3 million and to achieve a valuation of US$ 3,147.2 million by 2034. From 2024 to 2034, banking-as-a-service platform sales in Western Europe is estimated to register a CAGR of 12.3%.
Attributes
Details
Industry Size (2024)
US$ 984.3 million
Forecasted Industry Size (2034)
US$ 3,147.2 million
CAGR Estimation (2024 to 2034)
12.3%
Demand Analysis (2019)
US$ 594.3 million
Demand Forecast (2023)
US$ 883.2 million
CAGR Estimation (2019 to 2023)
10.4%
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Economic Catalysts for Banking-as-a-Service (BaaS) Platforms in Western Europe
BaaS platforms lower the costs of internal development and maintenance by enabling banks to outsource a range of banking services and functions. Cost-effectiveness is a crucial motivator for banks trying to simplify their business, leading to surge in demand for banking-as-a-service (BaaS) platform in Western Europe.
BaaS platforms make it easier for fintech firms and conventional banks to collaborate. Successful alliances and new revenue streams could arise from the collaboration. Sales of the banking-as-a-service (BaaS) platform in Western Europe were worth US$ 883.2 million in 2023.
BaaS platforms enable banks to integrate fintech and third-party services to provide a more seamless and customer-focused experience. Improving customer experiences is a significant factor in the adoption of banking-as-a-service (BaaS) platform in Western Europe.
Comparative View of Adjacent Banking-as-a-Service (BaaS) Platform in Key Markets
The table below provides a comparative overview of banking-as-a-service platform and their different pricing strategies in three important regions that are Western Europe, Korea and Japan. The opportunities for banking-as-a-service (BaaS) platform in Western Europe reveals an upward trend.
Industry Analysis of Banking-as-a-Service (BaaS) Platform in Western Europe:
Attributes
Industry Analysis of Banking-as-a-Service (BaaS) Platform in Western Europe
CAGR between 2024 to 2034
12.3%
Industry Size in 2024
US$ 984.3 million
Key Trends
Institutions are adopting BaaS platforms to stay competitive in response to the trend toward digitization and online banking services
Key Challenge
BaaS platform providers in Western Europe have to deal with changing financial regulations, which frequently need significant resources to ensure compliance and impede industry expansion
Industry Analysis of Banking-as-a-Service (BaaS) Platform in Japan:
Attributes
Industry Analysis of Banking-as-a-Service (BaaS) Platform in Japan
CAGR between 2024 to 2034
18.5%
Industry Size in 2024
US$ 283.2 million
Key Trends
The growing need for financial service providers to seamlessly integrate and exchange data is driving the BaaS platform adoption
Key Challenge
Due to the fierce competition in the BaaS industry, new players find it challenging to establish themselves and take a sizable portion of the market
Industry Analysis of Banking-as-a-Service (BaaS) Platform in Korea:
Attributes
Industry Analysis of Banking-as-a-Service (BaaS) Platform in Korea
CAGR between 2024 to 2034
16.7%
Industry Size in 2024
US$ 134.3 million
Key Trends
Regulatory initiatives supporting open banking encourage the adoption of BaaS platforms for data sharing and service accessibility
Key Challenge
The adoption of BaaS solutions can be slowed by the expense and complexity of integrating them with traditional banks' existing legacy systems
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Category-wise Insights
A thorough segmentation analysis of banking-as-a-service (BaaS) platform in Western Europe is included in this section. The producers of banking-as-a-service platform are closely monitoring market trends and the expanding bank segment’s demand in the end user category. Similarly, the banking as a service platform segment for outshines the solution category.
BaaS Platform Segment Dominates Western Europe Market in Solution Categories
Banking as a service platform has emerged as a highly lucrative category for sales in the Western Europe industry. A single integrated platform that offers a comprehensive solution comprising a wide range of services and APIs is what accounts for Banking as a service platform's dominance in the industry.
Segment
Banking as a Service Platform
Industry Share in 2024
48.20%
The BaaS platform segment attracts a wide range of financial institutions, improves customer experiences, and takes control of its fast-changing fintech landscape by offering a flexible and comprehensive package. For banking as a service platform companies looking for creative and flexible banking solutions in Western Europe, it has emerged as the top option.
Banks Take the Lead in Western Europe's BaaS Platform Market among End User Categories
In Western Europe, the banks segment leads the industry for banking as a service (BaaS) platforms in terms of sales. The banks segment shows because prominent conventional banks progressively implement BaaS solutions to improve their online offerings and maintain competitiveness in the constantly changing financial industry.
Segment
Banks Industry
Share in 2024
35.50%
Banks use BaaS to provide clients with cutting-edge, technologically advanced financial services and products. Although FinTech companies and investment firms employ BaaS solutions, the banks segment commands a substantial market share for banking-as-a-service (BaaS) platform in Western Europe, where customer loyalty and needs change with the times in the financial technology industry.
Country-wise Outlook
The table below depicts the expected banking-as-a-service (BaaS) platform demand in Western Europe, with an emphasis on the region's key economies, the United Kingdom, Germany, France, Netherlands, and Italy. Based on a thorough examination various trends, it is clear that the United Kingdom to hold promising opportunities with impactful banking-as-a-service (BaaS) platform providers.
Germany BaaS Industry Outlook
A developed financial services industry and strict regulatory oversight define Germany's banking-as-a-service platform market. Germany's focus on data security and privacy creates a favorable atmosphere for BaaS providers to gain customers' trust and compliance.
United Kingdom BaaS Industry Outlook
The United Kingdom has a robust fintech ecosystem and friendly regulatory frameworks positioning itself as a hub for the surging adoption of banking-as-a-service platforms. Despite some uncertainty created by Brexit, investors and banking-as-a-service platforms market players are attracted to London, given its status as a central global financial hub.
France BaaS Industry Outlook
The government's initiatives to encourage innovation in financial services and fintech startups are propelling the growth of the banking-as-a-service platforms (BaaS) market in France. To serve a wide range of clientele, the France banking-as-a-service platforms industry is competitive, with multiple players providing various BaaS solutions.
Country
CAGR from 2024 to 2034
United Kingdom
16.00%
Germany
13.90%
France
10.30%
Italy
8.50%
Netherlands
4.50%
Italy BaaS Industry Outlook
The expanding interest in fintech and digital banking is helping Italy's BaaS market to grow. BaaS providers can capitalize on the opportunities provided by the Italy industry to meet the growing demand for banking-as-a-service platforms and financial inclusion.
Spain BaaS Industry Outlook
BaaS platforms are rapidly adopted in Spain, where the emphasis is on using technology to improve customer experiences. The Spain's financial sector welcomes digital transformation, enabling traditional banks and financial institutions to work with BaaS providers.
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Competitive Landscape
Leading companies in the banking-as-a-service (BaaS) platform space are producing an increasing number of cutting-edge and creative solutions. This aims to satisfy the constantly shifting needs of different kinds of organizations.
Fintech start-ups in Western Europe are being acquired by several international corporations and banking institutions. They are leveraging banking-as-a-service platforms to expand their multichannel digital banking offerings and lower customer attrition.
Recent Developments Observed in Banking-as-a-Service (BaaS) Platform in Western Europe
Leading European player in digital transformation, Sopra Steria, announced in January 2021 through its subsidiary Sopra Banking Software that it had acquired Fidor Solutions, the software division, and digital banking expert of Fidor Bank. This acquisition is expected to dramatically accelerate the development and marketing of the company's digital solutions by enhancing the user features provided to banks via Sopra Banking Software's Digital Banking Engagement Platform (DBEP) solutions.
In June 2022, German BaaS operator Raisin Bank announced its intention to acquire German private bank Bankhaus August Lenz. This transaction marks Raisin Bank's entry into the financial system. In addition to cash options, Raisin Bank can offer digital payment services to its customers and affiliates.
With OpenPayd's BaaS platform, Citizen can now offer its customers simplified payments. OpenPayd was selected by Citizen as its real-time payment provider. This partnership allows for immediate payouts and better cash flow management for Citizen's clients.
Vital Players of Banking-as-a-Service (BaaS) Platform in Western Europe
Solarisbank
Railsbank
Treezor
OpenPayd
Contis
Thought Machine
Qonto
Fidor Solutions
Banqsoft
ClearBank
Scope of the Report
Attribute
Details
Estimated Valuation (2024)
US$ 984.3 million
Projected Valuation (2034)
US$ 3,147.2 million
Anticipated CAGR (2024 to 2034)
12.3%
Historical Analysis of Banking-as-a-Service (BaaS) Platform in Western Europe
2019 to 2023
Demand Forecast for Banking-as-a-Service (BaaS) Platform in Western Europe
2024 to 2034
Quantitative Units
Revenue in US$ million and CAGR from 2024 to 2034
Report Coverage
Revenue Forecast, Company Ranking, Competitive Landscape, Growth Factors, Trends and Pricing Analysis
Key Countries Analyzed for Banking-as-a-Service (BaaS) Platform in Western Europe
United Kingdom
Germany
France
Netherlands
Italy
Key Companies Profiled in Banking-as-a-Service Platform in Western Europe
Solarisbank
Railsbank
Treezor
OpenPayd
Contis
Thought Machine
Qonto
Fidor Solutions
Banqsoft
ClearBan
Key Segments
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 Country:
United Kingdom
Germany
France
Netherlands
Italy
Frequently Asked Questions
At What Rate is the Banking-as-a-Service (BaaS) Platform Growing in Western Europe?
The estimated CAGR of banking-as-a-service platform sales in Western Europe through 2034 is 12.3%.
How Big will the Banking-as-a-Service (BaaS) Platform Market in the Western Europe be?
Demand for banking-as-a-service platform in Western Europe is likely to be US$ 3,147.2 million by 2034.
What was the HCAGR of Banking-as-a-Service (BaaS) Platform Sales in Western Europe?
The HCAGR of banking-as-a-service platform sales in Western Europe countries was 10.4% from 2019 to 2023.
Which is the Preferred Solution for Banking-as-a-Service (BaaS) Platform in Western Europe?
The banking as a service platform segment is on track to hold a share of 48.20% through 2034.
Which End User Area Category to Lead the Industry?
The banks segment is likely to hold a share of 35.50% through 2034.
Table of Content
1. Executive Summary
1.1. Market Outlook
1.2. Demand-side Trends
1.3. Supply-side Trends
1.4. Technology Roadmap Analysis
1.5. Analysis and Recommendations
2. Market Overview
2.1. Market Coverage / Taxonomy
2.2. Market Definition / Scope / Limitations
3. Market Background
3.1. Market Dynamics
3.1.1. Drivers
3.1.2. Restraints
3.1.3. Opportunity
3.1.4. Trends
3.2. Scenario Forecast
3.2.1. Demand in Optimistic Scenario
3.2.2. Demand in Likely Scenario
3.2.3. Demand in Conservative Scenario
3.3. Opportunity Map Analysis
3.4. Investment Feasibility Matrix
3.5. PESTLE and Porter’s Analysis
3.6. Regulatory Landscape
3.6.1. By Key Regions
3.6.2. By Key Countries
3.7. Regional Parent Market Outlook
4. Industry Analysis and Outlook 2018 to 2022 and Forecast, 2023 to 2033
4.1. Historical Market Size Value (US$ Million) Analysis, 2018 to 2022
4.2. Current and Future Market Size Value (US$ Million) Projections, 2023 to 2033
4.2.1. Y-o-Y Growth Trend Analysis
4.2.2. Absolute $ Opportunity Analysis
5. Industry Analysis and Outlook 2018 to 2022 and Forecast 2023 to 2033, By Solution
5.1. Introduction / Key Findings
5.2. Historical Market Size Value (US$ Million) Analysis By Solution, 2018 to 2022
5.3. Current and Future Market Size Value (US$ Million) Analysis and Forecast By Solution, 2023 to 2033
5.3.1. Banking as a Service Platform
5.3.2. Banking as a Service APIs
5.3.3. Services
5.3.3.1. Payment Processing Services
5.3.3.2. Digital Banking Services
5.3.3.3. KYC Services
5.3.3.4. Customer Support Services
5.3.3.5. Others
5.4. Y-o-Y Growth Trend Analysis By Solution, 2018 to 2022
5.5. Absolute $ Opportunity Analysis By Solution, 2023 to 2033
6. Industry Analysis and Outlook 2018 to 2022 and Forecast 2023 to 2033, By Enterprise Size
6.1. Introduction / Key Findings
6.2. Historical Market Size Value (US$ Million) Analysis By Enterprise Size, 2018 to 2022
6.3. Current and Future Market Size Value (US$ Million) Analysis and Forecast By Enterprise Size, 2023 to 2033
6.3.1. Small & Mid-Sized Enterprises (SMEs)
6.3.2. Large Enterprises
6.4. Y-o-Y Growth Trend Analysis By Enterprise Size, 2018 to 2022
6.5. Absolute $ Opportunity Analysis By Enterprise Size, 2023 to 2033
7. Industry Analysis and Outlook 2018 to 2022 and Forecast 2023 to 2033, By End-user
7.1. Introduction / Key Findings
7.2. Historical Market Size Value (US$ Million) Analysis By End-user, 2018 to 2022
7.3. Current and Future Market Size Value (US$ Million) Analysis and Forecast By End-user, 2023 to 2033
7.3.1. Banks
7.3.2. FinTech Corporations
7.3.3. Investment Firms
7.3.4. Others
7.4. Y-o-Y Growth Trend Analysis By End-user, 2018 to 2022
7.5. Absolute $ Opportunity Analysis By End-user, 2023 to 2033
8. Industry Analysis and Outlook 2018 to 2022 and Forecast 2023 to 2033, By Country
8.1. Introduction
8.2. Historical Market Size Value (US$ Million) Analysis By Country, 2018 to 2022
8.3. Current Market Size Value (US$ Million) Analysis and Forecast By Country, 2023 to 2033
8.3.1. UK
8.3.2. Germany
8.3.3. Italy
8.3.4. France
8.3.5. Spain
8.3.6. Rest of Western Europe
8.4. Market Attractiveness Analysis By Country
9. UK Industry Analysis and Outlook 2018 to 2022 and Forecast 2023 to 2033, By Region
9.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2018 to 2022
9.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2023 to 2033
9.2.1. By Region
9.2.1.1. England
9.2.1.2. Scotland
9.2.1.3. Wales
9.2.1.4. Northern Ireland
9.2.2. By Solution
9.2.3. By Enterprise Size
9.2.4. By End-user
9.3. Market Attractiveness Analysis
9.3.1. By Region
9.3.2. By Solution
9.3.3. By Enterprise Size
9.3.4. By End-user
9.4. Key Takeaways
10. Germany Industry Analysis and Outlook 2018 to 2022 and Forecast 2023 to 2033, By Region
10.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2018 to 2022
10.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2023 to 2033
10.2.1. By Region
10.2.1.1. North-east (Germany)
10.2.1.2. North-west (Germany)
10.2.1.3. Central (Germany)
10.2.1.4. South (Germany)
10.2.1.5. Other(Germany)
10.2.2. By Solution
10.2.3. By Enterprise Size
10.2.4. By End-user
10.3. Market Attractiveness Analysis
10.3.1. By Region
10.3.2. By Solution
10.3.3. By Enterprise Size
10.3.4. By End-user
10.4. Key Takeaways
11. Italy Industry Analysis and Outlook 2018 to 2022 and Forecast 2023 to 2033, By Region
11.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2018 to 2022
11.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2023 to 2033
11.2.1. By Region
11.2.1.1. North (Italy)
11.2.1.2. Central (Italy)
11.2.1.3. South (Italy)
11.2.1.4. Islands (Italy)
11.2.2. By Solution
11.2.3. By Enterprise Size
11.2.4. By End-user
11.3. Market Attractiveness Analysis
11.3.1. By Region
11.3.2. By Solution
11.3.3. By Enterprise Size
11.3.4. By End-user
11.4. Key Takeaways
12. France Industry Analysis and Outlook 2018 to 2022 and Forecast 2023 to 2033, By Region
12.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2018 to 2022
12.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2023 to 2033
12.2.1. By Region
12.2.1.1. Northern (France)
12.2.1.2. Central (France)
12.2.1.3. Southern (France)
12.2.1.4. Eastern (France)
12.2.2. By Solution
12.2.3. By Enterprise Size
12.2.4. By End-user
12.3. Market Attractiveness Analysis
12.3.1. By Region
12.3.2. By Solution
12.3.3. By Enterprise Size
12.3.4. By End-user
12.4. Key Takeaways
13. Spain Industry Analysis and Outlook 2018 to 2022 and Forecast 2023 to 2033, By Region
13.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2018 to 2022
13.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2023 to 2033
13.2.1. By Region
13.2.1.1. Basque Country
13.2.1.2. Andalusia
13.2.1.3. Extremadura
13.2.1.4. Catalonia
13.2.1.5. Valencia
13.2.1.6. Rest of Spain
13.2.2. By Solution
13.2.3. By Enterprise Size
13.2.4. By End-user
13.3. Market Attractiveness Analysis
13.3.1. By Region
13.3.2. By Solution
13.3.3. By Enterprise Size
13.3.4. By End-user
13.4. Key Takeaways
14. Rest of Industry Analysis and Outlook 2018 to 2022 and Forecast 2023 to 2033
14.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2018 to 2022
14.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2023 to 2033
14.2.1. By Solution
14.2.2. By Enterprise Size
14.2.3. By End-user
14.3. Market Attractiveness Analysis
14.3.1. By Solution
14.3.2. By Enterprise Size
14.3.3. By End-user
14.4. Key Takeaways
15. Market Structure Analysis
15.1. Competition Dashboard
15.2. Competition Benchmarking
15.3. Market Share Analysis of Top Players
15.3.1. By Regional
15.3.2. By Solution
15.3.3. By Enterprise Size
15.3.4. By End-user
16. Competition Analysis
16.1. Competition Deep Dive
16.1.1. Sopra Banking Software
16.1.1.1. Overview
16.1.1.2. Product Portfolio
16.1.1.3. Profitability by Market Segments
16.1.1.4. Sales Footprint
16.1.1.5. Strategy Overview
16.1.1.5.1. Marketing Strategy
16.1.2. Solarisbank AG
16.1.2.1. Overview
16.1.2.2. Product Portfolio
16.1.2.3. Profitability by Market Segments
16.1.2.4. Sales Footprint
16.1.2.5. Strategy Overview
16.1.2.5.1. Marketing Strategy
16.1.3. Bankable
16.1.3.1. Overview
16.1.3.2. Product Portfolio
16.1.3.3. Profitability by Market Segments
16.1.3.4. Sales Footprint
16.1.3.5. Strategy Overview
16.1.3.5.1. Marketing Strategy
16.1.4. Treezor
16.1.4.1. Overview
16.1.4.2. Product Portfolio
16.1.4.3. Profitability by Market Segments
16.1.4.4. Sales Footprint
16.1.4.5. Strategy Overview
16.1.4.5.1. Marketing Strategy
16.1.5. 11:FS Foundry
16.1.5.1. Overview
16.1.5.2. Product Portfolio
16.1.5.3. Profitability by Market Segments
16.1.5.4. Sales Footprint
16.1.5.5. Strategy Overview
16.1.5.5.1. Marketing Strategy
16.1.6. Clearbank Ltd.
16.1.6.1. Overview
16.1.6.2. Product Portfolio
16.1.6.3. Profitability by Market Segments
16.1.6.4. Sales Footprint
16.1.6.5. Strategy Overview
16.1.6.5.1. Marketing Strategy
16.1.7. Q2 Software, Inc.
16.1.7.1. Overview
16.1.7.2. Product Portfolio
16.1.7.3. Profitability by Market Segments
16.1.7.4. Sales Footprint
16.1.7.5. Strategy Overview
16.1.7.5.1. Marketing Strategy
16.1.8. Green Dot Corporation
16.1.8.1. Overview
16.1.8.2. Product Portfolio
16.1.8.3. Profitability by Market Segments
16.1.8.4. Sales Footprint
16.1.8.5. Strategy Overview
16.1.8.5.1. Marketing Strategy
16.1.9. Sterling National Bank
16.1.9.1. Overview
16.1.9.2. Product Portfolio
16.1.9.3. Profitability by Market Segments
16.1.9.4. Sales Footprint
16.1.9.5. Strategy Overview
16.1.9.5.1. Marketing Strategy
16.1.10. Banco Bilbao Vizcaya Argentaria (BBVA), S.A
16.1.10.1. Overview
16.1.10.2. Product Portfolio
16.1.10.3. Profitability by Market Segments
16.1.10.4. Sales Footprint
16.1.10.5. Strategy Overview
16.1.10.5.1. Marketing Strategy
16.1.11. Unit Finance Inc.
16.1.11.1. Overview
16.1.11.2. Product Portfolio
16.1.11.3. Profitability by Market Segments
16.1.11.4. Sales Footprint
16.1.11.5. Strategy Overview
16.1.11.5.1. Marketing Strategy
16.1.12. Starling Bank
16.1.12.1. Overview
16.1.12.2. Product Portfolio
16.1.12.3. Profitability by Market Segments
16.1.12.4. Sales Footprint
16.1.12.5. Strategy Overview
16.1.12.5.1. Marketing Strategy
16.1.13. Treasury Prime
16.1.13.1. Overview
16.1.13.2. Product Portfolio
16.1.13.3. Profitability by Market Segments
16.1.13.4. Sales Footprint
16.1.13.5. Strategy Overview
16.1.13.5.1. Marketing Strategy
16.1.14. ADVAPAY OÜ
16.1.14.1. Overview
16.1.14.2. Product Portfolio
16.1.14.3. Profitability by Market Segments
16.1.14.4. Sales Footprint
16.1.14.5. Strategy Overview
16.1.14.5.1. Marketing Strategy
16.1.15. Technisys
16.1.15.1. Overview
16.1.15.2. Product Portfolio
16.1.15.3. Profitability by Market Segments
16.1.15.4. Sales Footprint
16.1.15.5. Strategy Overview
16.1.15.5.1. Marketing Strategy
17. Assumptions & Acronyms Used18. Research Methodology
