Published on November 9, 2023, 6:03 am
A recent study by Juniper Research predicts significant growth in the Banking-as-a-Service (BaaS) platform market. According to the study, BaaS platform revenue is expected to exceed $38 billion by 2027, showing a rapid growth rate of 240% compared to $11 billion in 2022.
BaaS enables non-banking companies to offer financial services to their customers without requiring a banking license or extensive infrastructure. This allows brands to generate additional revenue without investing significant time and resources into building these capabilities in-house.
The report from Juniper Research identifies Green Dot as the leading player in the BaaS market. Green Dot’s success can largely be attributed to its strong partnerships, particularly with major retailers like Apple and Walmart. The report highlights Green Dot’s range of banking and payment solutions, including card issuance, customized rewards programs, and payroll services.
Another notable player in the BaaS market is Marqeta, which stands out for its impressive international presence. Marqeta leverages its competitive position when onboarding multinational customers. Similarly, Solaris has achieved success through a large volume of partnerships by leveraging its established brand and offering easy integration and technological support for all its services.
Dominique Tetnowski, an author of the research report, emphasizes the importance of continuous innovation in BaaS capabilities to meet evolving user expectations as digital banking becomes increasingly advanced. For fintechs operating in this space, delivering a superior user experience is critical in today’s highly competitive banking environment.
With BaaS expected to offer enormous opportunities for new entrants as well as established players alike, it is essential for companies to develop comprehensive solutions portfolios that address all banking service requirements efficiently. By doing so, enterprises can focus on providing exceptional user experiences while navigating an increasingly competitive landscape.
In conclusion, the future looks promising for BaaS platforms with remarkable revenue growth projected. As more brands recognize the potential of partnering with BaaS providers like Green Dot and Marqeta, the industry is set to witness significant advancements. Keeping pace with user expectations and delivering outstanding experiences will be key to success in this rapidly expanding market.
Source: Juniper Research