Banking as a service market 2023-2027; A descriptive analysis of the five forces model, market dynamics, and segmentation - Technavio

NEW YORK, Jan. 17, 2023 /PRNewswire/ -- According to Technavio, the global banking as a service market size is estimated to grow by USD 21,806.94 million from 2022 to 2027. The market is estimated to grow at a CAGR of 14.62% during the forecast period. North America held the largest share of the global market in 2022, and the market in the region is estimated to witness an incremental growth of 38%. For more Insights on market size, Request a sample report

The global cloud data warehouse market is fragmented, and the five forces analysis covers– 

• Bargaining Power of Buyers 
• The threat of New Entrants
• Threat of Rivalry
• Bargaining Power of Suppliers
• Threat of Substitutes
• Interpretation of porter's five models helps to strategize the business, for entire details – buy the report!

The report includes the market's adoption lifecycle, from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Segment Overview
Technavio has segmented the market based on end-user (banks, NBFC, and government), component (platform and services), and geography (North America, Europe, APAC, South America, and Middle East and Africa). 

• The market share growth by the banks segment will be significant during the forecast period. The segment is driven by the increasing adoption of advanced financial technologies by banks. In addition, benefits offered by bank-as-a-service solutions such as cost savings, technology integration, increased customer insights, and enhanced collaboration among others are contributing to the growth of the segment.

Geography Overview
By geography, the global banking as a service market is segmented into North America, Europe, APAC, South America, and Middle East and Africa. The report provides actionable insights and estimates the contribution of all regions to the growth of the global banking as a service market.

• North America is estimated to contribute 38% to the growth of the global market during the forecast period. Major BFSI firms in the region such as Goldman Sachs, JPMorgan Chase Co., and Bank of America Corporation, are investing in technology by offering new apps and interfaces to provide better service to their customers. The region is also witnessing a significant increase in the number of fintech startups. These factors are driving the growth of the banking as a service market in North America.

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Key factor driving market growth

• The market is driven by the increasing adoption by end-users.
• Banking as a service solutions offer numerous benefits to end-users.
• They provide convenience, speed, and a wide range of payment options for customers.
• The use of banking as a service solutions is increasing significantly in NBFCs as these solutions allow non-banks to offer core banking services.
• Many such wide benefits of incorporation of banking as a service are driving the growth of the market in focus.

Leading trends influencing the market 

• Growing partnerships, collaborations, and agreements is a key trend in the market.
• The market is witnessing an increase in the number of partnerships, collaborations, and agreements among vendors.
• For instance, in February 2020, Bankable announced a strategic collaboration with Visa in the US. With this collaboration, Bankable aims to provide Visa US clients, including corporate and financial institutions, access to its real-time and modular banking solutions, enabling them to deploy digital banking and faster payment services.
• Similarly, in November 2021, Unit, the New York-based banking as a service, partnered with Currencycloud to offer their customers an easy, seamless way to fulfill both domestic and international banking needs.
• This trend among vendors is expected to drive the growth of the market during the forecast period.

Major challenges hindering the market growth

• Implementation and data security issues are key challenges hindering the growth of the market.
• Several fintech companies that are new to banking are typically unaware of the variety of products available in the market.
• There are also legal and security concerns that act as barriers to the implementation of banking as a service.
• As players in the market handle critical user information, they are always concerned about their data being misused.
• Hence, many organizations are skeptical about the deployment of banking as a service for their operations, which is reducing the growth potential in the market.

Driver, Trend & Challenges are the factors of market dynamics that state about consequences & sustainability of the businesses, find some insights from a sample report!

What are the key data covered in this banking as a service market report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the banking as a service market between 2023 and 2027
• Precise estimation of the size of the banking as a service market size and its contribution to the market in focus on the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the banking as a service market industry across North America, Europe, APAC, South America, and Middle East and Africa
• A thorough analysis of the market's competitive landscape and detailed information about vendors
• Comprehensive analysis of factors that will challenge the growth of banking as a service market vendors

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• The banking as a service market in Latin America is estimated to grow at a CAGR of 20.2% between 2022 and 2027. The size of the market is forecast to increase by USD 4,309.74 million. The increasing adoption of BaaS solutions by end-users is notably driving the market growth, although factors such as implementation and data security challenges may impede the market growth.
• The home equity lending market is estimated to grow at a CAGR of 3.81% between 2022 and 2027. The size of the market is forecast to increase by USD 35,535.04 million. The massive increase in home prices is notably driving the market growth, although factors such as the fear of losing property may impede the market growth.

Banking As A Service Market Scope

1 Executive Summary

• 1.1 Market overview 
• Exhibit 01: Executive Summary – Chart on Market Overview
• Exhibit 02: Executive Summary – Data Table on Market Overview
• Exhibit 03: Executive Summary – Chart on Global Market Characteristics
• Exhibit 04: Executive Summary – Chart on Market by Geography
• Exhibit 05: Executive Summary – Chart on Market Segmentation by End-user
• Exhibit 06: Executive Summary – Chart on Market Segmentation by Component
• Exhibit 07: Executive Summary – Chart on Incremental Growth
• Exhibit 08: Executive Summary – Data Table on Incremental Growth
• Exhibit 09: Executive Summary – Chart on Vendor Market Positioning

2 Market Landscape

• 2.1 Market ecosystem 
• Exhibit 10: Parent market
• Exhibit 11: Market Characteristics

3 Market Sizing

• 3.1 Market definition 
• Exhibit 12: Offerings of vendors included in the market definition

• 3.2 Market segment analysis 
• Exhibit 13: Market segments

• 3.3 Market size 2022

• 3.4 Market outlook: Forecast for 2022-2027 
• Exhibit 14: Chart on Global - Market size and forecast 2022-2027 ($ million)
• Exhibit 15: Data Table on Global - Market size and forecast 2022-2027 ($ million)
• Exhibit 16: Chart on Global Market: Year-over-year growth 2022-2027 (%)
• Exhibit 17: Data Table on Global Market: Year-over-year growth 2022-2027 (%)

4 Historic Market Size

• 4.1 Global banking as a service market 2017 - 2021
• Exhibit 18: Historic Market Size – Data Table on Global banking as a service market 2017 - 2021 ($ million)

• 4.2 End user Segment Analysis 2017 - 2021 
• Exhibit 19: Historic Market Size – End user Segment 2017 - 2021 ($ million)

• 4.3 Component Segment Analysis 2017 - 2021 
• Exhibit 20: Historic Market Size – Component Segment 2017 - 2021 ($ million)

• 4.4 Geography Segment Analysis 2017 - 2021 
• Exhibit 21: Historic Market Size – Geography Segment 2017 - 2021 ($ million)

• 4.5 Country Segment Analysis 2017 - 2021 
• Exhibit 22: Historic Market Size – Country Segment 2017 - 2021 ($ million)

5 Five Forces Analysis

• 5.1 Five forces summary 
• Exhibit 23: Five forces analysis - Comparison between 2022 and 2027

• 5.2 Bargaining power of buyers 
• Exhibit 24: Chart on Bargaining power of buyers – Impact of key factors 2022 and 2027

• 5.3 Bargaining power of suppliers 
• Exhibit 25: Bargaining power of suppliers – Impact of key factors in 2022 and 2027

• 5.4 Threat of new entrants 
• Exhibit 26: Threat of new entrants – Impact of key factors in 2022 and 2027

• 5.5 Threat of substitutes 
• Exhibit 27: Threat of substitutes – Impact of key factors in 2022 and 2027

• 5.6 Threat of rivalry 
• Exhibit 28: Threat of rivalry – Impact of key factors in 2022 and 2027

• 5.7 Market condition 
• Exhibit 29: Chart on Market condition - Five forces 2022 and 2027

6 Market Segmentation by End-user

• 6.1 Market segments 
• Exhibit 30: Chart on End-user - Market share 2022-2027 (%)
• Exhibit 31: Data Table on End-user - Market share 2022-2027 (%)

• 6.2 Comparison by End-user 
• Exhibit 32: Chart on Comparison by End-user
• Exhibit 33: Data Table on Comparison by End-user

• 6.3 Banks - Market size and forecast 2022-2027
• Exhibit 34: Chart on Banks - Market size and forecast 2022-2027 ($ million)
• Exhibit 35: Data Table on Banks - Market size and forecast 2022-2027 ($ million)
• Exhibit 36: Chart on Banks - Year-over-year growth 2022-2027 (%)
• Exhibit 37: Data Table on Banks - Year-over-year growth 2022-2027 (%)

• 6.4 NBFC - Market size and forecast 2022-2027
• Exhibit 38: Chart on NBFC - Market size and forecast 2022-2027 ($ million)
• Exhibit 39: Data Table on NBFC - Market size and forecast 2022-2027 ($ million)
• Exhibit 40: Chart on NBFC - Year-over-year growth 2022-2027 (%)
• Exhibit 41: Data Table on NBFC - Year-over-year growth 2022-2027 (%)

• 6.5 Government - Market size and forecast 2022-2027
• Exhibit 42: Chart on Government - Market size and forecast 2022-2027 ($ million)
• Exhibit 43: Data Table on Government - Market size and forecast 2022-2027 ($ million)
• Exhibit 44: Chart on Government - Year-over-year growth 2022-2027 (%)
• Exhibit 45: Data Table on Government - Year-over-year growth 2022-2027 (%)

• 6.6 Market opportunity by End-user 
• Exhibit 46: Market opportunity by End-user ($ million)

7 Market Segmentation by Component

• 7.1 Market segments 
• Exhibit 47: Chart on Component - Market share 2022-2027 (%)
• Exhibit 48: Data Table on Component - Market share 2022-2027 (%)

• 7.2 Comparison by Component 
• Exhibit 49: Chart on Comparison by Component
• Exhibit 50: Data Table on Comparison by Component

• 7.3 Platform - Market size and forecast 2022-2027
• Exhibit 51: Chart on Platform - Market size and forecast 2022-2027 ($ million)
• Exhibit 52: Data Table on Platform - Market size and forecast 2022-2027 ($ million)
• Exhibit 53: Chart on Platform - Year-over-year growth 2022-2027 (%)
• Exhibit 54: Data Table on Platform - Year-over-year growth 2022-2027 (%)

• 7.4 Services - Market size and forecast 2022-2027
• Exhibit 55: Chart on Services - Market size and forecast 2022-2027 ($ million)
• Exhibit 56: Data Table on Services - Market size and forecast 2022-2027 ($ million)
• Exhibit 57: Chart on Services - Year-over-year growth 2022-2027 (%)
• Exhibit 58: Data Table on Services - Year-over-year growth 2022-2027 (%)

• 7.5 Market opportunity by Component 
• Exhibit 59: Market opportunity by Component ($ million)

8 Customer Landscape

• 8.1 Customer landscape overview 
• Exhibit 60: Analysis of price sensitivity, lifecycle, customer purchase basket, adoption rates, and purchase criteria

9 Geographic Landscape

• 9.1 Geographic segmentation 
• Exhibit 61: Chart on Market share by geography 2022-2027 (%)
• Exhibit 62: Data Table on Market share by geography 2022-2027 (%)

• 9.2 Geographic comparison 
• Exhibit 63: Chart on Geographic comparison
• Exhibit 64: Data Table on Geographic comparison

• 9.3 North America - Market size and forecast 2022-2027
• Exhibit 65: Chart on North America - Market size and forecast 2022-2027 ($ million)
• Exhibit 66: Data Table on North America - Market size and forecast 2022-2027 ($ million)
• Exhibit 67: Chart on North America - Year-over-year growth 2022-2027 (%)
• Exhibit 68: Data Table on North America - Year-over-year growth 2022-2027 (%)

• 9.4 Europe - Market size and forecast 2022-2027
• Exhibit 69: Chart on Europe - Market size and forecast 2022-2027 ($ million)
• Exhibit 70: Data Table on Europe - Market size and forecast 2022-2027 ($ million)
• Exhibit 71: Chart on Europe - Year-over-year growth 2022-2027 (%)
• Exhibit 72: Data Table on Europe - Year-over-year growth 2022-2027 (%)

• 9.5 APAC - Market size and forecast 2022-2027
• Exhibit 73: Chart on APAC - Market size and forecast 2022-2027 ($ million)
• Exhibit 74: Data Table on APAC - Market size and forecast 2022-2027 ($ million)
• Exhibit 75: Chart on APAC - Year-over-year growth 2022-2027 (%)
• Exhibit 76: Data Table on APAC - Year-over-year growth 2022-2027 (%)

• 9.6 South America - Market size and forecast 2022-2027
• Exhibit 77: Chart on South America - Market size and forecast 2022-2027 ($ million)
• Exhibit 78: Data Table on South America - Market size and forecast 2022-2027 ($ million)
• Exhibit 79: Chart on South America - Year-over-year growth 2022-2027 (%)
• Exhibit 80: Data Table on South America - Year-over-year growth 2022-2027 (%)

• 9.7 Middle East and Africa - Market size and forecast 2022-2027 
• Exhibit 81: Chart on Middle East and Africa - Market size and forecast 2022-2027 ($ million)
• Exhibit 82: Data Table on Middle East and Africa - Market size and forecast 2022-2027 ($ million)
• Exhibit 83: Chart on Middle East and Africa - Year-over-year growth 2022-2027 (%)
• Exhibit 84: Data Table on Middle East and Africa - Year-over-year growth 2022-2027 (%)

• 9.8 US - Market size and forecast 2022-2027
• Exhibit 85: Chart on US - Market size and forecast 2022-2027 ($ million)
• Exhibit 86: Data Table on US - Market size and forecast 2022-2027 ($ million)
• Exhibit 87: Chart on US - Year-over-year growth 2022-2027 (%)
• Exhibit 88: Data Table on US - Year-over-year growth 2022-2027 (%)

• 9.9 China - Market size and forecast 2022-2027
• Exhibit 89: Chart on China - Market size and forecast 2022-2027 ($ million)
• Exhibit 90: Data Table on China - Market size and forecast 2022-2027 ($ million)
• Exhibit 91: Chart on China - Year-over-year growth 2022-2027 (%)
• Exhibit 92: Data Table on China - Year-over-year growth 2022-2027 (%)

• 9.10 Canada - Market size and forecast 2022-2027
• Exhibit 93: Chart on Canada - Market size and forecast 2022-2027 ($ million)
• Exhibit 94: Data Table on Canada - Market size and forecast 2022-2027 ($ million)
• Exhibit 95: Chart on Canada - Year-over-year growth 2022-2027 (%)
• Exhibit 96: Data Table on Canada - Year-over-year growth 2022-2027 (%)

• 9.11 France - Market size and forecast 2022-2027
• Exhibit 97: Chart on France - Market size and forecast 2022-2027 ($ million)
• Exhibit 98: Data Table on France - Market size and forecast 2022-2027 ($ million)
• Exhibit 99: Chart on France - Year-over-year growth 2022-2027 (%)
• Exhibit 100: Data Table on France - Year-over-year growth 2022-2027 (%)

• 9.12 Germany - Market size and forecast 2022-2027
• Exhibit 101: Chart on Germany - Market size and forecast 2022-2027 ($ million)
• Exhibit 102: Data Table on Germany - Market size and forecast 2022-2027 ($ million)
• Exhibit 103: Chart on Germany - Year-over-year growth 2022-2027 (%)
• Exhibit 104: Data Table on Germany - Year-over-year growth 2022-2027 (%)

• 9.13 Market opportunity by geography 
• Exhibit 105: Market opportunity by geography ($ million)

10 Drivers, Challenges, and Trends

• 10.1 Market drivers

• 10.2 Market challenges

• 10.3 Impact of drivers and challenges 
• Exhibit 106: Impact of drivers and challenges in 2022 and 2027

• 10.4 Market trends

11 Vendor Landscape

• 11.1 Overview

• 11.2 Vendor landscape 
• Exhibit 107: Overview on Criticality of inputs and Factors of differentiation

• 11.3 Landscape disruption 
• Exhibit 108: Overview on factors of disruption

• 11.4 Industry risks 
• Exhibit 109: Impact of key risks on business

12 Vendor Analysis

• 12.1 Vendors covered 
• Exhibit 110: Vendors covered

• 12.2 Market positioning of vendors 
• Exhibit 111: Matrix on vendor position and classification

• 12.3 11:FS 
• Exhibit 112: 11:FS - Overview
• Exhibit 113: 11:FS - Product / Service
• Exhibit 114: 11:FS - Key offerings

• 12.4 Banco Bilbao Vizcaya Argentaria SA 
• Exhibit 115: Banco Bilbao Vizcaya Argentaria SA - Overview
• Exhibit 116: Banco Bilbao Vizcaya Argentaria SA - Business segments
• Exhibit 117: Banco Bilbao Vizcaya Argentaria SA - Key offerings
• Exhibit 118: Banco Bilbao Vizcaya Argentaria SA - Segment focus

• 12.5 Block Inc. 
• Exhibit 119: Block Inc. - Overview
• Exhibit 120: Block Inc. - Business segments
• Exhibit 121: Block Inc. - Key offerings
• Exhibit 122: Block Inc. - Segment focus

• 12.6 Bnkbl Ltd. 
• Exhibit 123: Bnkbl Ltd. - Overview
• Exhibit 124: Bnkbl Ltd. - Product / Service
• Exhibit 125: Bnkbl Ltd. - Key offerings

• 12.7 ClearBank Ltd. 
• Exhibit 126: ClearBank Ltd. - Overview
• Exhibit 127: ClearBank Ltd. - Product / Service
• Exhibit 128: ClearBank Ltd. - Key offerings

• 12.8 Currency Cloud Group Ltd. 
• Exhibit 129: Currency Cloud Group Ltd. - Overview
• Exhibit 130: Currency Cloud Group Ltd. - Product / Service
• Exhibit 131: Currency Cloud Group Ltd. - Key offerings

• 12.9 Finastra 
• Exhibit 132: Finastra - Overview
• Exhibit 133: Finastra - Product / Service
• Exhibit 134: Finastra - Key offerings

• 12.10 Green Dot Corp. 
• Exhibit 135: Green Dot Corp. - Overview
• Exhibit 136: Green Dot Corp. - Business segments
• Exhibit 137: Green Dot Corp. - Key offerings
• Exhibit 138: Green Dot Corp. - Segment focus

• 12.11 MatchMove Pay Pte Ltd. 
• Exhibit 139: MatchMove Pay Pte Ltd. - Overview
• Exhibit 140: MatchMove Pay Pte Ltd. - Product / Service
• Exhibit 141: MatchMove Pay Pte Ltd. - Key offerings

• 12.12 Movencorp Inc. 
• Exhibit 142: Movencorp Inc. - Overview
• Exhibit 143: Movencorp Inc. - Product / Service
• Exhibit 144: Movencorp Inc. - Key offerings

• 12.13 PayPal Holdings Inc. 
• Exhibit 145: PayPal Holdings Inc. - Overview
• Exhibit 146: PayPal Holdings Inc. - Product / Service
• Exhibit 147: PayPal Holdings Inc. - Key offerings

• 12.14 Societe Generale SA 
• Exhibit 148: Societe Generale SA - Overview
• Exhibit 149: Societe Generale SA - Business segments
• Exhibit 150: Societe Generale SA - Key offerings
• Exhibit 151: Societe Generale SA - Segment focus

• 12.15 Solarisbank AG 
• Exhibit 152: Solarisbank AG - Overview
• Exhibit 153: Solarisbank AG - Product / Service
• Exhibit 154: Solarisbank AG - Key offerings

• 12.16 StoneCastle Digital Solutions LLC 
• Exhibit 155: StoneCastle Digital Solutions LLC - Overview
• Exhibit 156: StoneCastle Digital Solutions LLC - Product / Service
• Exhibit 157: StoneCastle Digital Solutions LLC - Key offerings

• 12.17 Urban FT Group Inc. 
• Exhibit 158: Urban FT Group Inc. - Overview
• Exhibit 159: Urban FT Group Inc. - Product / Service
• Exhibit 160: Urban FT Group Inc. - Key offerings

13 Appendix

• 13.1 Scope of the report

• 13.2 Inclusions and exclusions checklist 
• Exhibit 161: Inclusions checklist
• Exhibit 162: Exclusions checklist

• 13.3 Currency conversion rates for US$ 
• Exhibit 163: Currency conversion rates for US$

• 13.4 Research methodology 
• Exhibit 164: Research methodology
• Exhibit 165: Validation techniques employed for market sizing
• Exhibit 166: Information sources

• 13.5 List of abbreviations 
• Exhibit 167: List of abbreviations

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