BASINGSTOKE, U.K.–A new study from Juniper Research has found the total BaaS (Banking-as-a-Service) platform revenue will exceed $38 billion by 2027; rising from $11 billion in 2022.
The rapid growth of 240% will be driven by BaaS’ ability to deepen relationships between brands and their customers by providing a user-friendly banking and payments experience, according to Juniper.
The report notes that BaaS enables non-banking companies to offer their consumers financial services without owning a banking license or infrastructure, which allows brands to generate new revenue without using time and resources to generate new capabilities in house.
Sector Leaders
According to Juniper, 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 said it evaluated each vendor based on the same criteria, which included distribution and partnerships, breadth of offering and future business prospects in BaaS. The research found that Green Dot leads the BaaS market largely due to its strong partnerships; specifically with large retailers such as Apple and Walmart, Juniper stated.
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, according to Juniper.
Similar 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, the analysis adds.
The Pressure is On
“As digital banking is becoming increasingly advanced, pressure is on fintechs to innovate their BaaS capabilities to exceed user expectations,” said research author Dominique Tetnowski. “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.”
The Very Best in CU Reporting. For You. For Free. Or Your Money Back
Don’t forget to check your Spam/Junk email folder if you haven’t been receiving your free, popular and daily CUToday.info news headlines.
And if you haven’t yet signed up for the new email solution on which CUToday.info has partnered with ResponseGenius, you can do so here. Signing up requires less than one minute of your time.
CUToday.info has received very positive response from readers following the move to an improved provider of the daily headlines, but many also noted they did need to go to their Spam/Junk folder and mark it as safe.
The new email solution has not only improved every reader’s delivery experience, but it also features a fresh, new format that is easy to read, especially on mobile devices.
Please note and/or make your IT department or email administrator aware the emails will be coming from the domains CUTodayinfo.com and CUTodayinfoReply.com.