Banking as a service Market Analysis

Component (Platform, Services)

Platform segment is expected to account for banking as a service market share of more than 72% by the end of 2037, owing to the demand being generated for scalable and robust digital banking infrastructures. This dominance defines the vital role taken up by the platforms in effectively enabling seamless integrations and efficient operations of financial services. In February 2024, Wealthify announced its partnership with ClearBank to embed banking services into its investment platform, representing the rising dependency on platforms within the market. This is but an example of such partnerships, driving home the critical role that a platform plays in facilitating smoother financial management and value addition in service delivery.

Type (API-based Banking as a service, Cloud-based Banking as a service)

In banking as a service market, cloud-based baas solutions segment is set to account for revenue share of around 75% by 2037, owing to their flexibility, scalability, and cost-efficiency. This enables Financial Institutions to quickly adapt to market demand while easing their infrastructure costs. Fiserv's strategic acquisition of Finxact in February 2022 underscored the rise in demand experienced within cloud-native banking technology. These developments underpin digital transformation and scalability as one of the most crucial factors driving the momentum of cloud-based solutions in the market.

Our in-depth analysis of the banking as a service market includes the following segments