Banking-as-a-platform Market Soaring 1125%

By Author: Arina Smith
Total Articles: 185
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A new study conducted by Juniper Research, renowned fintech experts, has projected a substantial surge in global revenue from Banking-as-a-Platform (BaaP) services. The research predicts that BaaP revenue will skyrocket from $4 billion in 2023 to a staggering $49 billion by 2028.

The study emphasizes the potential for BaaP to enable traditional banks to regain a competitive advantage against neobanks. By collaborating with innovative vendors, banks can diversify their services and offerings through third-party partnerships. This includes delivering embedded insurance, lifestyle perks with major brands, and access to HR services for small businesses.

The concept of Banking-as-a-Platform, as defined by Juniper Research, revolves around a business model that empowers third-party partners to create products and services for bank customers. In this model, technology companies provide APIs, while the bank manages data exchange, authentication, and compliance.

Banks can leverage partnerships with industry leaders to enhance their core banking model and remain competitive in the fintech landscape. Unlike traditional ...
... acquisitions, BaaP partnerships offer flexibility and streamlined integration, especially as banks shift towards API-focused frameworks. Through BaaP, banks can extend their service range without straying from their core business, gaining a competitive edge.

The report highlights that banking marketplaces are an effective avenue for banks to embrace the digital era. By establishing financial services ecosystems, banks can deliver personalized customer experiences without the need to develop new services in-house. Neobank Revolut's approach exemplifies this; it has expanded its in-app offerings to create a tailored ecosystem, enhancing customer satisfaction and loyalty.

Juniper Research advises banks to evaluate their core services and consider working with third-party innovators to improve their offerings while reducing costs. This strategy is particularly relevant in challenging economic times.

Juniper Research offers further insights through its Banking-as-a-Platform: Market Forecasts, Trends & Strategies 2023-2028 report, providing valuable information for the banking industry's evolution in the digital age.

The research findings emphasize the transformative potential of BaaP in shaping the future of traditional banking, enabling partnerships and innovation to enhance customer experiences and maintain competitiveness.

https://www.techdogs.com/tech-news/business-wire/juniper-research-banking-as-a-platform-market-revenue-set-to-grow-over-1125-by-2028-as-traditional-banks-fight-back-juniper-research-study-finds