BaaS market to increase to USD 64.7 billion by 2032

By forging collaborations, fintech companies and traditional banks focus on improving client onboarding processes and allowing real-time monitoring, while also maintaining risk management and compliance standards. The increase in partnerships supports the shift towards simplified, tech-enabled banking solutions, assisting the BaaS market outlook. Additionally, the report mentions that the API-based BaaS segment is set to show extensive growth during the analysed period, as it facilitates the integration of banking functionalities into third-party applications and enhances how financial services are delivered and accessed.

Furthermore, Global Market Insights underlined that the BaaS market from the NBFC segment is expected to have a significant CAGR from 2023 to 2032, as the service is leveraged to expand service offerings, offering financial products such as loans, investments, and payment solutions. Also, the European BaaS market is set to showcase substantial growth during the analysed period. Considering its current capabilities, BaaS in Europe supports partnerships between financial institutions and fintech firms, delivering accessible financial solutions and assisting a customer-focused approach. Backed by a favourable regulatory environment, the service is expected to showcase expansion in the region, as it merges innovation, compliance, and user-centricity in the current financial landscape.