Banking as a Service offers a great opportunity for financial services
A new global report from Finastra shows that, of the 1,600 industry executives surveyed, 85% are either planning or implementing BaaS in the next 12-18 months.
Eight out of ten respondents believe that the overall BAS market is set to grow by 30% with an expectation of growth of at least 50% over the next five years.
However, among non-banks that plan to offer services to their customers, most respondents expect at least a 50% increase in that time frame.
BaaS represents a US$7 trillion opportunity with distributors – including retailers, e-commerce firms and other consumer brands – migrating to BaaS solutions and overall growth in excess of 70% per year over the next three years expect to be; 60-70% distributors want to increase their spending on financial partnerships (including BaaS).
Sectors set to see the highest traction are SME lending, corporate lending, and corporate treasury/FX services.