BaaS market to increase to USD 64.7 billion by 2032

Monday 13 May 2024 09:38 CET | News

Global Market Insights’ report has uncovered that the Banking-as-a-Service (BaaS) market is expected to reach a revenue collection of USD 64.7 billion by 2032. 

As detailed in the research conducted by Global Market Insights, the worldwide BaaS market was valued at USD 15.9 billion in 2023, however, it is projected to expand substantially, surpassing a revenue collection of nearly USD 64.7 billion by 2032, with an annual growth rate of approximately 17% over 2024 to 2032. The expansion can be attributed to an increase in partnerships and collaborations between industry participants, with financial institutions requiring innovation and agility and forming strategic alliances with fintech firms, thus driving BaaS adoption.

Global Market Insights’ report has uncovered that the Banking-as-a-Service (BaaS) market is expected to reach a revenue collection of USD 64.7 billion by 2032.

BaaS’ market surge

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.

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Keywords: BaaS, expansion, financial institutions, customer experience, Open Banking, report
Categories: Banking & Fintech
Companies: Global Market Insights
Countries: World
This article is part of category

Banking & Fintech

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