A new study from Juniper Research has found the total BaaS (Banking-as-a-Service) platform revenue will exceed US$38 billion by 2027; rising from US$11 billion in 2022. (US$1 = RM4.591)
The rapid growth of 240 per cent will be driven by BaaS ability to deepen relationships between brands and their customers by providing a user-friendly banking and payments experience.
BaaS enables non-banking companies to offer their customers financial services without owning a banking licence or infrastructure, allowing brands to generate new revenue without using time and resources to generate new capabilities in house.
According to a statement, the research assessed the top 15 BaaS vendors within the global market and ranked the top 3 vendors as Green Dot; Marqeta and Solaris.
Juniper Research found that Green Dot leads the BaaS market largely due to its strong partnerships; specifically with large retailers such as Apple and Walmart. Additionally, it highlights Green Dot’s impressive array of banking and payments solutions, including card issuance, custom rewards and payroll services.
Marqeta also ranks well due to its impressive international presence; being able to leverage a competitive position when onboarding multinational customers. Similarly, to Green Dot, Solaris success stems from its large volume of partnerships that have been achieved through its established brand, coupled with the ease of integration and technological support offered with all its services.
Research author Dominique Tetnowski explained: “As digital banking is becoming increasingly advanced, pressure is on fintechs to innovate their BaaS capabilities to exceed user expectations. Offering a solutions portfolio in BaaS that has all the capabilities needed to offer banking services means that enterprises can focus on delivering a superior user experience, which is critical in an increasingly competitive banking environment.
Juniper Research provides research and analytical services to the global hi-tech communications sector; providing consultancy, analyst reports, and industry commentary. – Bernama
