Banking-as-a-Service (BaaS) Global Market Report 2024

The banking-as-a-service (baas) market size has grown rapidly in recent years. It will grow from $614.62 billion in 2023 to $731.13 billion in 2024 at a compound annual growth rate (CAGR) of 19.0%. The expansion observed during the historical period can be ascribed to an increase in the demand for digital banking services, a rise in the demand for personalized financial services, an upsurge in the demand for embedded finance solutions, an increase in globalization and international trade, and a rise in regulatory requirements.

The banking-as-a-service (baas) market size is expected to see rapid growth in the next few years. It will grow to $1486.18 billion in 2028 at a compound annual growth rate (CAGR) of 19.4%. The anticipated growth in the forecast period can be linked to the increasing demand for embedded finance solutions, market expansion, and global diversity. Other contributing factors include a heightened focus on risk management, a rising demand for digital banking services, and the impact of geopolitical events and regulatory changes. Key trends expected in the forecast period encompass the increasing adoption of strategies by key players, technological advancements in BaaS solutions, the integration of safety and quality control features in BaaS products, the development of standardized APIs (Application Programming Interfaces), and a growing collaboration between traditional banks, fintech firms, and non-financial entities.

The anticipated growth in the banking-as-a-service (BaaS) market is expected to be propelled by the increasing adoption of digital banking. Digital banking involves utilizing computers to access banking features and services through the bank's website. The rise of digital banking has significantly contributed to the expansion of the banking-as-a-service (BaaS) industry, driven by heightened client demand for accessible and personalized financial services. This trend offers seamless integrations, accelerated time-to-market, and cost-effective scalability for banking service providers. For example, a survey conducted by MagiClick UK Ltd. in September 2021, involving 2,087 UK adults, revealed a notable surge in the use of online web banking services, with approximately 50% of users reporting usage. Among various age groups, 18–24-year-olds exhibited a 35% increase, 25–34-year-olds reported a 32% increase, and 35–44-year-olds noted a 31% increase in their usage of online web banking. Consequently, the rising adoption of digital banking is a key driver for the banking-as-a-service (BaaS) market.

The increasing prevalence of cyber threats is expected to contribute to the growth of the banking-as-a-service (BaaS) market. Cyber threats encompass potential dangers or risks arising from malicious activities that aim to compromise data through various tactics targeting computer systems, networks, and digital information. As banking-as-a-service (BaaS) involves the sharing and processing of sensitive financial data between banks and third-party service providers, it becomes susceptible to cyber threats, leading to identity theft, financial fraud, and reputational damage. For example, in February 2023, the Australian Cyber Security Centre reported that cybercrime reports received in 2022 totaled 76,000, representing a 13% increase from the previous year. Therefore, the growing number of cyber threats stands as a significant factor driving the growth of the banking-as-a-service (BaaS) market.


Cloud-native architecture stands out as a prominent trend gaining traction in the banking-as-a-service market. This architectural approach is specifically tailored for software development and deployment, aiming to leverage the advantages provided by cloud computing environments. Companies within the banking-as-a-service (BaaS) market are increasingly adopting cloud-native architecture to construct and deliver their services, aiming to fortify their positions in the market. As an example, in February 2023, Oracle, a cloud technology company based in the US, unveiled Oracle Banking Cloud Services, a new suite of componentized, composable cloud-native services encompassing banking accounts cloud service, banking payments cloud service, banking enterprise limits and collateral management cloud service, banking origination cloud service, banking digital experience cloud service, and banking APIs cloud service. These services empower banks with capabilities such as scalable corporate demand deposit processing, enterprise-wide limit and collateral management, real-time global payments, API management, retail customer onboarding, and self-service digital experiences, facilitating rapid and secure modernization through a microservices architecture.

Major players in the banking-as-a-service (BaaS) market are strategically focusing on introducing next-generation solutions, such as personalized apps, to gain a competitive edge. Personalized apps are mobile applications customized to cater to the specific needs and preferences of individual users, offering a tailored experience for banking services. For instance, in September 2021, PayPal Holdings, Inc., a US-based financial technology company, launched the PayPal app, an all-in-one personalized application designed to provide customers with a comprehensive platform to manage their financial lives. The app incorporates tools for earning rewards, redeemable for cash, and accessing cashback offers from various brands. It enables users to handle diverse financial activities, including sending and receiving money, paying friends and family, and conducting secure international transfers.

In June 2023, FIS, a US-based financial technology company, completed the acquisition of Bond Financial Technologies Inc. for an undisclosed amount. This strategic move allowed FIS to incorporate seasoned talent in banking-as-a-service (BaaS) and embedded finance, enhancing its capabilities to cater to fintech companies and elevate financial services. Bond Financial Technologies Inc., headquartered in the UK, specializes in providing a banking-as-a-service platform that delivers end-to-end software infrastructure, enabling secure interactions between brands and banks.

Major companies operating in the banking-as-a-service (baas) market report are Banco Bilbao Vizcaya Argentaria S.A., PayPal Holdings Inc., Square Inc., Green Dot Corporation, Paytm Payments Bank, Marqeta Inc., Starling Bank Ltd., Cross River Bank, Mambu GmbH, 10x Future Technologies, ClearBank Ltd., Currency Cloud, Thought Machine, Railsbank Technology Ltd., FinXact, MatchMove Pay Pte. Ltd., Fidor Bank AG, BNKBL Ltd., Treezor SAS, Bankable, Treasury Prime, Movencorp Inc., Bankifi, Solaris Bank LLC, Project Imagine Ltd.

North America was the largest region in the banking-as-a-service (BaaS) market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the banking-as-a-service (baas) market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the banking-as-a-service (baas) market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

The primary categories of banking as a service include API-based banking as a service and cloud-based banking as a service. API-based banking as a service represents a financial infrastructure paradigm where banks make their services and functionalities accessible through APIs to external developers and companies. This enables them to develop and seamlessly integrate banking capabilities into their own applications and platforms. These components encompass platforms and services utilized by entities ranging from large and small enterprises to end-users such as banks, non-bank financial companies (NBFC), governments, and others.

The banking-as-a-service (BaaS) research report is one of a series of new reports that provides banking-as-a-service (BaaS) market statistics, including the banking-as-a-service (BaaS) industry's global market size, regional shares, competitors with a banking-as-a-service (BaaS) market share, detailed banking-as-a-service (BaaS) market segments, market trends and opportunities, and any further data you may need to thrive in the banking-as-a-service (BaaS) industry. This banking-as-a-service (BaaS) market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The banking-as-a-service (BaaS) market consists of revenues earned by entities by providing regulatory compliance, risk management, customer support, and transaction processing services. The market value includes the value of related goods sold by the service provider or included within the service offering. The banking-as-a-service (BaaS) market also includes sales of payment processing solutions, lending and credit products, analytics, and reporting tools that are used in providing banking-as-a-service. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.


The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).


The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.