Banking as a Service (BaaS) Market in India (2025 - 2030)

Banking as a Service (BaaS) is a financial technology model that enables non-banking businesses, such as fintech companies, e-commerce platforms, and enterprises, to integrate banking services into their offerings through APIs. India has over 2,500 fintech startups, with this number expected to exceed 5,000 by 2030. BaaS allows third-party providers to offer financial products like digital wallets, lending, payments, and insurance without obtaining a banking license.

Market insights:

The Banking as a Service (BaaS) market in India was valued at INR 84.85 Bn in 2022 and is projected to grow at a compound annual growth rate (CAGR) of 6%, reaching INR 153.84 Bn by 2030.

This growth is driven by increasing fintech-bank collaborations, regulatory support for open banking, and the rising demand for embedded finance across industries like e-commerce and SaaS. The rise of neobanks, growing consumer preference for digital-first banking, and the scalability of cloud-based BaaS solutions are further accelerating adoption. Businesses leverage BaaS to reduce costs, expand financial offerings, and enhance customer experiences.

Market trends:

The Banking as a Service (BaaS) market in India is witnessing rapid evolution, driven by several key trends. API-driven banking is becoming the backbone of fintech-bank collaborations, enabling seamless integration of financial services into non-banking platforms. The rise of embedded finance is fuelling demand for BaaS, with industries like e-commerce, SaaS, and mobility integrating payments, lending, and insurance into their ecosystems.

The growth of neobanks and digital-first financial institutions is another major trend, as they rely on BaaS infrastructure to offer customer-centric banking solutions without traditional banking licenses. Regulatory advancements, such as open banking initiatives and digital lending guidelines, are fostering innovation while ensuring compliance and security. Additionally, AI-powered banking solutions are enhancing fraud detection, personalized financial services, and operational efficiency, making BaaS more intelligent and scalable.

Growth opportunities:

India’s Banking as a Service (BaaS) market presents significant growth opportunities driven by increasing digital adoption, fintech expansion, and evolving regulatory frameworks. The rising demand for embedded finance across industries such as e-commerce, logistics, and SaaS is creating new avenues for BaaS providers to offer seamless financial services like digital payments, lending, and insurance.

The SME and MSME segments remain largely underserved by traditional banking, providing a strong opportunity for fintech firms leveraging BaaS to offer tailored financial solutions. Neobanks and digital-first banking models are also on the rise, driving further demand for BaaS platforms to provide infrastructure for account management, credit services, and wealth management.