Europe Banking-As-A-Service Market - Growth, Trends, COVID-19 Impact and Forecast (2022 - 2027)

Banking-as-a-service in Europe growing at a significant rate and is expected to grow 3 times in the next few years, United Kingdom is the largest market for banking-as-a-service (BaaS) platforms due to the strong presence of banking-as-a-service (BaaS) platform providers and accounts for approximately 25% of Europe’s market share

The changing landscape of the banking and financial services business has led end-users to adopt innovative digital banking solutions that offer ease and efficiency while lowering costs for banks and other service providers, resulting in market growth.

Due to Covid-19, Demand for BaaS platforms increased in medium and small-sized enterprises as there is a rise in an adaption of digital banking services across several domains in Europe. Integration of artificial intelligence, blockchain technology, and API services within internet banking lead to the growth of the market.

Treezor, French Banking-as-a-Service (BaaS) and expert in embedded finance continues to develop by obtaining an authorization extension from the French regulator (ACPR) to provide all payment services and became the first Payment and Electronic Money Institution to have every type of authorization in 2021.

Key Market Trends

Increasing Demand for Embedded Finance Driving Banking as a Service.

Embedded finance revenue in Europe is about to reach USD 40,000 million in 2022, gaining demand among consumers due to the rising popularity of the buy now pay later lending model. the pandemic has also pushed the demand for embedded lending in crucial industry segments across European countries. Retailers in Europe are embracing new embedded finance offerings, with 56% of vendors launching new products in 2022.

In comparison to other European countries, embedded lending is most widespread in the United Kingdom. The United Kingdom was one of the first countries to use embedded lending to finance purchases. Retail finance is seen as a simple way for shoppers in the United Kingdom to spread the expense of large purchases.

The Rise in Adoption of Banking-as-a-Service Platform in Large Organizations Boosting the BaaS Market

The use of BaaS platforms in large organizations segment is more than in small and medium-sized enterprises, it accounts for more than 50% market share in Europe and is expected to continue its domination as it is increasing its customer base by investing in digital transformation to offer tech-savvy banking operations.

The demand for BaaS platforms in the large enterprises' segment is anticipated to be driven by organizations’ growing inclination for reliable service platforms and automation capabilities

Competitive Landscape

The report covers major players operating in the Europe Banking-As-A-Service Market. In terms of market share, few of the major players currently dominate the market. However, with technological advancement and service innovation, mid-size to large-size companies are increasing their market presence by securing new contracts and tapping new markets. It has major players including Solaris bank, Treezor, Bankable and Clear Bank, etc.,

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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