PriyaPatelTLDR:
- The global Banking-as-a-Service (BaaS) market is projected to reach $614.62 billion in 2023, with a compound annual growth rate (CAGR) of 19.1%.
- Digital banking adoption and the use of cloud-native architecture are key drivers of market growth.
The global Banking-as-a-Service (BaaS) market is experiencing significant growth, with a projected valuation of $614.62 billion by 2023. This represents a compound annual growth rate (CAGR) of 19.1% from its previous valuation of $516.17 billion in 2022. Despite global economic challenges, such as the Russia-Ukraine conflict, the BaaS sector is expected to continue its positive growth trajectory.
One of the key factors driving the growth of the BaaS market is the increasing adoption of digital banking. Financial institutions are embracing digital platforms to provide flexible and personalized banking services to their customers. A survey conducted by MagiClick UK Ltd. in September 2021 found significant increases in online banking use since March 2020 across various demographics.
Another important trend in the BaaS market is the use of cloud-native architecture. Leading BaaS providers, such as Oracle, are employing state-of-the-art cloud technology to deliver superior banking services. Oracle has introduced a suite of cloud-native banking services designed to promote agility within the sector through a microservices architecture.
The report provides in-depth analysis of the market size and segmentation, along with forecasted growth trends and emerging opportunities. It also offers insights into cloud-native architectures and digital banking adoption. The report includes profiles and strategic developments of key market players in the BaaS industry.
Some of the companies mentioned in the report include Banco Bilbao Vizcaya Argentaria S.A., PayPal Holdings Inc., Square Inc., Green Dot Corporation, and Starling Bank Ltd., among others.
Overall, the global BaaS market is expected to continue its robust growth, driven by digital banking adoption and the use of cloud-native architecture. With increasing demand for flexible and personalized banking services, financial institutions are turning to BaaS solutions to meet the changing needs of their customers.
