U.S Banking As A Service Market Size By Deployment (Cloud-Based, On-Premises), By Offering (Products, Services), By Providers (Traditional Banks, Fintech Companies/NBFC), By APIs (Payment APIs, Lending APIs) And Forecast

U.S Banking As A Service Market Size And Forecast

U.S Banking As A Service Market size was valued at USD 116.84 Million in 2023 and is projected to reach USD 739.93 Million by 2030, growing at a CAGR of 26.55% from 2024 to 2030.

Expanding demand for consumer-centric digital financial services and the growing presence of fintech companies are the factors driving the market growth. The U.S Banking As A Service Market report provides a holistic evaluation of the market. The report offers a comprehensive analysis of key segments, trends, drivers, restraints, competitive landscape, and factors that are playing a substantial role in the market.

U.S Banking As A Service Market Executive Summary

Banking as a Service (BaaS) is a model that allows third-party financial service providers to integrate and offer banking functionalities without establishing a traditional banking infrastructure. Through APIs, BaaS enables seamless access to core banking services, such as payments, deposits, and loans. This approach empowers fintech companies, startups, or non-banking entities to develop and deliver financial products to end-users. BaaS fosters innovation, accelerates time-to-market for new financial solutions, and enhances customer experiences. By leveraging existing banking infrastructure, BaaS providers can focus on creating tailored financial products, fostering a more agile and competitive financial ecosystem. This collaborative framework encourages diversity in financial services and promotes the democratization of banking, making sophisticated financial tools accessible to a broader range of businesses and consumers.

In recent years, traditional banks have slowly adopted digital technologies, leaving behind the reliance on paper for more secure, digital management of their operations and overall capital through appropriate software and IT products. However, the efforts of licensed banking to provide consumers with a personalized kind of service have been limited. On the other hand, the growth of a number of non-finance/banking and newer fintech in providing customers with more personalized services have immensely grown, which is limited by the risk pertaining to obtaining banking licenses. As the Banking-As-A-Service (BAAS) allows the banks to provide consumer-centric services in partnership with other banking or non-banking or third-party entities, it is the main major driver for the growth of the overall market. Furthermore, the rising market for the embedded finance industry and open banking and API integration is expected to offer lucrative growth opportunities for the market.

U.S Banking As A Service MarketSegmentation Analysis

The U.S Banking As A Service Market is Segmented on the basis of Deployment, Offering, Providers, and APIs.

U.S Banking As A Service Market, By Deployment

• Cloud-Based
• On-Premises

To Get a Summarized Market Report By Deployment-

Based on Deployment, the market is segmented into Cloud-Based and On-Premises. The U.S Banking As A Service Market is experiencing a scaled level of attractiveness in the Cloud-based. The Cloud-based segment holds the major share of the market and is projected to grow at a CAGR of 27.63% between 2024 and 2030.

Cloud banking services refer to the deployment (and management) of banking infrastructure to manage financial operations and banking cloud services without needing dedicated physical servers. Cloud banking is the on-demand provision of hosted computer services (servers, data storage, networking, communication, apps, and analytics) to banking as a service industry. Banking-as-a-Service (BaaS) platform hosted in the cloud to profit from investments in regulated banking ecosystems. Using Application Protocol Interfaces (APIs), cloud-based platforms enable the one-click economy by seamlessly connecting core banking with non-financial activities.

U.S Banking As A Service Market, By Offering

• Products
• Services

To Get a Summarized Market Report By Offering-

Based on Offering, the market is segmented into Products and Services. The U.S Banking As A Service Market is experiencing a scaled level of attractiveness in the Products segment. The Products segment holds the major share of the market and is projected to grow at a CAGR of 25.79% between 2024 and 2030.

Various products are available, including credit cards, mutual funds, savings accounts, current accounts, fixed deposits, money transfers, personal loans, home loans, auto loans, and Visa debit cards. Third-party suppliers are able to offer lending products like consumer credit, commercial credit, and personal loans, thanks to BaaS. Through APIs, this includes expedited loan origination, approval, and disbursement procedures. BaaS providers provide investment products like savings accounts, investment accounts, and robo-advisory services. Customers are able to invest in various financial instruments and manage their wealth on a single platform.

U.S Banking As A Service Market, By Providers

• Traditional Banks
• Fintech Companies/NBFC
• Others

Based On Providers, the market is segmented into Traditional Banks, Fintech Companies/NBFC, and Others. The U.S Banking As A Service Market is experiencing a scaled level of attractiveness in the Traditional Banks segment. The Traditional Banks segment holds the major share of the market and is projected to grow at a CAGR of 25.50% between 2024 and 2030.

The banking industry has long been considered old. Banks have existed for hundreds of years, making it reasonable. Banks with a physical presence and a domestic banking license are referred to as traditional banks. These are well-known banks, like Banco Santander, ING, and Bank of America, to mention a few. Traditional banks have long provided the financial system’s solid and reliable foundation. However, rapid technological advancement and shifting consumer demands have made traditional banking need a fresh perspective.

U.S Banking As A Service Market, By APIs

• Payment APIs
• Lending APIs
• Account Information APIs
• Identity Verification APIs

Based on APIs, the market is segmented into Payment APIs, Lending APIs, Account Information APIs, and Identity Verification APIs. The U.S Banking As A Service Market is experiencing a scaled level of attractiveness in the Payment APIs segment. The Payment APIs segment holds the major share of the market and is projected to grow at a CAGR of 32.5% between 2024 and 2030.

Payment API is an Application Programming Interface designed to make it easier to include payment-related features in a financial application or platform. Payment APIs are essential for managing financial activity and facilitating transactions, and BaaS gives third-party developers access to and usage of banking services. By guaranteeing communication between all parties involved in the payment process, including the processor, gateway, and e-commerce platform, a payment API is an application programming interface that enables apps and e-commerce sites to accept payments. Payment processor APIs provide the foundation of integrated payments.

Key Players

The “U.S Banking As A Service Market” study report will provide valuable insight with an emphasis on the market. The major players in the market are Green Dot Corporation, Treasury Prime, BOKU, Dwolla, Intuit, Square Inc., PayPal, Prosper Marketplace, Movencorp Inc., and SynapseFI. This section provides a company overview, ranking analysis, company regional and industry footprint, and ACE Matrix.

Company Market Ranking Analysis

The company ranking analysis provides a deeper understanding of the top 3 players operating U.S Banking As A Service Market. takes into consideration several factors before providing a company ranking. The top three players the PayPal, Square Ic., and Intuit. The factors considered for evaluating these players include company’s brand value, product portfolio (including product variations, specifications, features, and price), company presence across major regions, product-related sales obtained by the company in recent years, and its share in the total revenue. further studies the company’s product portfolio based on the technologies adopted or new strategies undertaken by the company to enhance its market presence globally or regionally. We also consider the distribution network (online as well as offline) of the company that helps us to understand the company’s presence and foothold in various U.S Banking As A Service Markets.

Company Regional/Industry Footprint

The company’s regional section provides geographical presence, regional-level reach, or the respective company’s sales network presence. For instance, PayPal has a presence in the United States. Apart from this, the industrial footprint section provides a cross-analysis of industry verticals and market players that gives a clear picture of the company landscape concerning the industries they serve their products. The product portfolio of the companies is classified in terms of their diversification as well as the number of products/services that are available. The geographic reach and the market penetration are determined considering the penetration of the company’s products and services in various geographical regions and industries.

Ace Matrix

This section of the report provides an overview of the company evaluation scenario in the U.S Banking As A Service Market. The company evaluation has been carried out based on the outcomes of the qualitative and quantitative analyses of various factors such as product portfolios, technological innovations, market presence, revenues of companies, and the opinions of primary respondents.

Report Scope

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