Hypothekarbank Lenzburg acquires stake in Sutor Bank to drive BaaS

Backed by the investment, the cooperation between the banks aims to combine their technologies and expertise to expand the BaaS business model in Germany and Europe.

Expanding BaaS in Germany and Europe

The investment is accompanied by a cooperation agreement in which both banks will develop new BaaS products on a common platform, Finstar, which is developed and distributed by Hypothekarbank Lenzburg.

Several Swiss banks also use Finstar as their core banking system, including digital financial services provider Neon. Through this platform, Hypothekarbank Lenzburg’s partners from Switzerland can become active in Germany without changing technical platforms.

With its BaaS business model, Sutor Bank focuses on the interface between securities trading, crypto asset trading and payment transactions. Partners include the neo-broker JustTrade, the blocked account provider for international students Fintiba, and the crypto trading platform Bitvavo powered by Hyphe. Through the cooperation with Hypothekarbank Lenzburg, the BaaS offering expands to include account and card products.

Adoption of BaaS platforms in Europe

The Europe BaaS market is expected to register a CAGR of greater than 7% from 2025 to 2030, and of 15% by 2034. Future Market Insights’ report estimates the Europe BaaS industry size to grow from USD 8,913.30 million in 2024 to USD 36,097.05 million by 2034, as the target industry recorded a YOY growth as 13% in 2023.

More and more Europeans are using smartphones and online platforms for everyday tasks, creating demand for financial services that are seamlessly integrated into their digital lives. Traditional banks are evolving by using BaaS in response to these customer demands.

Non-banks across Europe are increasingly adopting BaaS platform as they enable them to offer financial products such as loans, payments and money management tools without obtaining a full banking licence.