Asia Pacific Banking-as-a-Service (BaaS) Market: Industry Analysis and Forecast (2024-2030) by Type, Enterprise, Service and, Region.

  • Asia Pacific Banking-as-a-Service (BaaS) Market size was valued at US$ 120.91 Billion in 2023 and the total Asia Pacific Banking-as-a-Service (BaaS)

  • Format : PDF | Report ID : SMR_471

Asia Pacific Banking-as-a-Service (BaaS) Market Overview:

king as a service (BaaS) is an end-to-end process that assures a web-based financial service's complete implementation. This form of digital banking service is available whenever the customer wants it and operates on a set timetable. BaaS brings together as many service providers as are needed into a single comprehensive method for performing a financial service quickly and in a hassle-free manner. A BaaS is expected to provide particular features in addition to delivering a financial service. Asia Pacific Banking-as-a-Service (BaaS) Market report is studied and analysed on the basis product type, gender, formulation and region.

 

Asia Pacific Banking-as-a-Service (BaaS) Market

 

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For several years, the BaaS industry in Asia-Pacific has outpaced global banking norms. However, as the region's rising economies mature, the banking industry's earnings, returns on equity, and price-to-book multiples are catching up to global standards. Furthermore, banks are suffering from narrowing profits, poor asset quality, and rising capital costs as economic development slowed across the region (particularly in emerging markets e.g. India) and cyber attackers challenge firms in client acquisition and share of wallets. The dynamics draining Asia-Pacific banks' strength lead to probable consolidation, as they put pressure on banks to attain scale benefits in monetary supply, production, and capacities.

 

In 2018, the Asia Pacific Banking-as-a-Service (BaaS) Market brought in US$1.6 trillion in revenue. In 2018, the region's earnings apart from taxes exceeded $700 billion, accounting for 37% of worldwide banking profit streams. Revenue and profit streams are growing, overall returns on equity (ROEs) are comfortably above the cost of capital, and total returns to stakeholders for Asia-Pacific banking are 51% points higher than (Total Return Swap) TRS for worldwide banking.

 

Asia Pacific Banking-as-a-Service (BaaS) Market Dynamics:

Banks from Asia Pacific Banking-as-a-Service (BaaS) market are expected to cut expenses and strive for market-leading efficiency ratios. Asset management, commercial lending, small & medium enterprise financing (SME), and transaction banking are four fast-growing areas where those with best-in-class digital and analytics skills are expected to capture considerable additional income. Banks like WeBank and PingAn are expected to adopt a methodical strategy for managing partnerships, strategic partnerships, mergers, and acquisitions as they attempt to gain size. Banks are also attempting to reinvent themselves or risk vanishing if they are to survive a period of probable consolidation. The foundations for a data-driven, client-centric digital banking operation are already in place for many businesses.

 

Asia Pacific Banking-as-a-Service (BaaS) Market

 

Banks are trying to adapt to a more flexible technological architecture and operating model, to improve their data and analytics skills, and adopt a strategy for obtaining and training the new talent necessary for the future workforce to complete the change. To obtain size, market share, technology, and personnel synergies, high-performing banks would usually buy smaller businesses.

 

Asian banks have caught up and begun to overtake their Western counterparts in terms of scale, but consumers' technological sophistication has provided banks with an opportunity to produce new technologies and surge ahead. Asia's most well-known fintech entrepreneurs, e.g. Alipay and WeChat Pay, are leading the world in digital payment scalability. According to McKinsey's Global Payments Map, digital payments account for almost 99% of cashless transaction volume in China and 45% of digital payments globally.

 

Asia Pacific Banking-as-a-Service (BaaS) Market Segment Analysis:

By Enterprise, the large enterprise segment dominated the Asia Pacific Banking-as-a-Service (BaaS) Market in 2023. It is expected to grow at the CAGR of 9.8% in the forecast period (2024-30). This can be attributed to banks always favoring large enterprises and often sidelining SMEs. To fund working capital, the great majority of SMEs in Asia-Pacific turn to non-bank sources.

 

Another reason behind banks favoring large enterprises is that many banks have realized that by partnering with a large digital company e.g. an e-commerce giant, banks can gain new consumers as well as their data. For example, Kotak Bank has teamed with Bharti Airtel to reduce the expenses of new client acquisition and delivery of services while also receiving access to Airtel's 250,000 retail shops throughout India. With the purchase of BSS Microfinance, it expanded its reach into the mass market of lower-income clients (i.e. approximately 220,000 customers and 80 branches).

 

Most banks have a problem in that they lack the data necessary to effectively assess the creditworthiness of SMEs, and as a result, they frequently make poor lending decisions. As a result, risk costs for SMEs in Asia-Pacific are more than twice those for major corporations. For banks that can use online channels to reach the wider marketplace of SMEs and employ sophisticated analytics to find suitable clients for both secured and unsecured loans, lending to SMEs has the potential to be a very successful industry. CMB, for example, has developed a completely digital SME services platform that streamlines the loan application process. Customers may access funds immediately when the automatic evaluation is done, which takes only a few minutes. Third parties supply new services by connecting to the platform via APIs, which helps to improve platform activity.

 

 

Asia Pacific Banking-as-a-Service (BaaS) Market

 

Asia Pacific Banking-as-a-Service (BaaS) Market Regional Insights:

China:

Chinese banking-as-a-service sector has lower revenue per customer but reaches profitability faster.  WeBank was China’s first fully digital bank and it has grown into China’s largest digital bank. Established corporations and company partnerships are mostly driving the Asia Pacific Banking-as-a-Service (BaaS) Market. Partnerships provide substantial advantages in terms of gaining size, notwithstanding fundamental obstacles in governance. WeBank, which is funded by Tencent, has 198 million clients, and MYbank, which is backed by Alibaba, has more than 19.5 million SME customers just 5 years after its establishment. China's digital banks have an approximately 4.98% share of the country's US$695 billion unsecured consumer loan industry and more than 7% of online SME loans in a short period.

 

India:

Traditional banking procedures have been impacted by the digital revolution in the banking sector in India. While some Indians still use their internet banking site to make purchases, check funds, adjust accounts, and apply for a loan or credit card, the majority of Indians now use their banks' mobile applications or payment gateway platforms e.g. Google Pay and PhonePe to do so.

 

When YES Bank and RBL Bank released their API to external developers to construct novel financial services, technological integration at Indian banks began. ICICI, RBL, Kotak, DCB Bank, and several other banks followed suit. Today, the ICICI Bank API Banking portal, which includes more than 250 APIs, allows developers from potential partner organizations all over the world to join up, design an application, pick it, test it, and get the code. Businesses, fintech, corporations, and e-commerce start-ups may now easily collaborate with the bank to co-create new customer solutions seamlessly, all from the comfort of a single platform.

 

The purpose of this research is to provide stakeholders in the industry with a thorough insight into the Asia Pacific Banking-as-a-Service (BaaS) Market. The study includes an analysis of difficult data in simple language, as well as the industry's historical and current state, as well as anticipated market size and trends. The market report examines all segments of the industry, with a focus on significant players such as market leaders, followers, and new entrants. The report includes a PORTER, PESTEL analysis as well as the possible influence of microeconomic market determinants. External and internal elements that are expected to have a favorable or negative impact on the firm have been examined, providing decision-makers with a clear future vision of the industry. The research also aids in comprehending the

 

Asia Pacific Banking-as-a-Service (BaaS) Market dynamics and structure by studying market segments and forecasting market size. The research is an investor's guide since it depicts the competitive analysis of major competitors in the Asia Pacific Banking-as-a-Service (BaaS) Market by product, price, financial situation, product portfolio, growth plans, and geographical presence.

 

Breakthroughs in the industry are discussed, as well as organic and inorganic growth plans. Various companies are focusing on organic growth strategies such as new product releases, product approvals, and other items such as patents and events. Inorganic growth strategies used in the industry included acquisitions, partnerships, and collaborations.

 

Asia Pacific Banking-as-a-Service (BaaS) Market Scope:

Asia Pacific Banking-as-a-Service (BaaS) Market  

Segmentation

Market Indicators:

Details

by  Product Type

  • API-based BaaS
  • Cloud-based BaaS

Historical Data:

2018-2022

by Gender

  • SMEs
  • Large Enterprises

Forecast Period

2024-2030

by Formulation

  • Banking IaaS
  • Banking as a Platform
  • FinTech SaaS
  • NBFCs

Base Year:

2023

by Region

  • China
  • India
  • Japan
  • South Korea
  • Australia
  • Vietnam
  • Rest of APAC

CAGR:

10.2%

Market Size in 2023:

US $ 120.91Bn

The market size in 2030:

US $ 189.50 Bn

 

Asia Pacific Banking-as-a-Service (BaaS) Market Players:

  • OneConnect
  • Du Xiaoman Financial
  • Jiedaibao
  • Ping An Insurance
  • Money Forward
  • Kyash
  • Moneycatcha
  • Policybazaar
  • Razorpay
  • Paytm
  • MoneyTap
  • ZestMoney


Frequently Asked Questions

Asia Pacific Banking-as-a-Service (BaaS) revenue is expected to grow at 10.2% through 2024 to 2030

Chapter 1 Scope of the Report
Chapter 2 Research Methodology

      2.1.Research Process
      2.2.Asia Pacific Banking-as-a-Service (BaaS) Market: Target Audience
      2.3.Asia Pacific Banking-as-a-Service (BaaS) Market: Primary Research (As per Client Requirement)
      2.4.Asia Pacific Banking-as-a-Service (BaaS) Market: Secondary Research
Chapter 3 Executive Summary
Chapter 4 Competitive Landscape

      4.1.Market Share Analysis, By Value, 2023-2030
            4.1.1.Market Share Analysis, By Region, By Value, 2023-2030 (In %)
                  4.1.1.1.Asia Pacific Market Share Analysis, By Value, 2023-2030 (In %)
            4.1.2.Market Share Analysis, By Type, By Value, 2023-2030 (In %) 
                  4.1.2.1.Asia Pacific Market Share Analysis, By Type, By Value, 2023-2030 (In %)
                        4.1.2.1.1.China Market Share Analysis, By Type, By Value, 2023-2030 (In %)
                        4.1.2.1.2.India Market Share Analysis, By Type, By Value, 2023-2030 (In %)
                        4.1.2.1.3.Japan Market Share Analysis, By Type, By Value, 2023-2030 (In %)
                        4.1.2.1.4.South Korea Market Share Analysis, By Type, By Value, 2023-2030 (In %)
                        4.1.2.1.5.Australia Market Share Analysis, By Type, By Value, 2023-2030 (In %)
                        4.1.2.1.6.ASEAN Market Share Analysis, By Type, By Value, 2023-2030 (In %)
                        4.1.2.1.7.Rest of APAC Market Share Analysis, By Type, By Value, 2023-2030 (In %)
            4.1.3.Market Share Analysis, By Enterprise, By Value, 2023-2030 (In %)
                  4.1.3.1.Asia Pacific Market Share Analysis, By Enterprise, By Value, 2023-2030 (In %)
                        4.1.3.1.1.China Market Share Analysis, By Enterprise, By Value, 2023-2030 (In %)
                        4.1.3.1.2.India Market Share Analysis, By Enterprise, By Value, 2023-2030 (In %)
                        4.1.3.1.3.Japan Market Share Analysis, By Enterprise, By Value, 2023-2030 (In %)
                        4.1.3.1.4.South Korea Market Share Analysis, By Enterprise, By Value, 2023-2030 (In %)
                        4.1.3.1.5.Australia Market Share Analysis, By Enterprise, By Value, 2023-2030 (In %)
                        4.1.3.1.6.ASEAN Market Share Analysis, By Enterprise, By Value, 2023-2030 (In %)
                        4.1.3.1.7.Rest of APAC Market Share Analysis, By Enterprise, By Value, 2023-2030 (In %)
            4.1.4.Market Share Analysis, By Service, By Value, 2023-2030 (In %)
                  4.1.4.1.Asia Pacific Market Share Analysis, By Service, By Value, 2023-2030 (In %)
                        4.1.4.1.1.China Market Share Analysis, By Service, By Value, 2023-2030 (In %)
                        4.1.4.1.2.India Market Share Analysis, By Service, By Value, 2023-2030 (In %)
                        4.1.4.1.3.Japan Market Share Analysis, By Service, By Value, 2023-2030 (In %)
                        4.1.4.1.4.South Korea Market Share Analysis, By Service, By Value, 2023-2030 (In %)
                        4.1.4.1.5.Australia Market Share Analysis, By Service, By Value, 2023-2030 (In %)
                        4.1.4.1.6.ASEAN Market Share Analysis, By Service, By Value, 2023-2030 (In %)
                        4.1.4.1.7.Rest of APAC Market Share Analysis, By Service, By Value, 2023-2030 (In %)
      4.2. Stellar Competition matrix
            4.2.1.Asia Pacific Stellar Competition Matrix
      4.3.Key Players Benchmarking 
            4.3.1.Key Players Benchmarking by Type, Pricing, Market Share, Investments, Expansion Plans, Physical Presence, and Presence in the Market.
      4.4. Mergers and Acquisitions in Industry
            4.4.1M&A by Region, Value and Strategic Intent
      4.5.Market Dynamics
            4.5.1.Market Drivers
            4.5.2.Market Restraints
            4.5.3.Market Opportunities
            4.5.4.Market Challenges
            4.5.5.PESTLE Analysis
            4.5.6.PORTERS Five Force Analysis
            4.5.7.Value Chain Analysis
Chapter 5 Asia Pacific Banking-as-a-Service (BaaS) Market Segmentation: By Type
      5.1.Asia Pacific Banking-as-a-Service (BaaS) Market, By Type, Overview/Analysis, 2023-2030
      5.2.Asia Pacific Banking-as-a-Service (BaaS) Market, By Type, By Value, Market Share (%), 2023-2030 (USD Billion)
      5.3.Asia Pacific Banking-as-a-Service (BaaS) Market, By Type, By Value, - 
            5.3.1.API-based BaaS
            5.3.2.Cloud-based BaaS
Chapter 6 Asia Pacific Banking-as-a-Service (BaaS) Market Segmentation: By Enterprise
      6.1.Asia Pacific Banking-as-a-Service (BaaS) Market, By Enterprise, Overview/Analysis, 2023-2030
      6.2.Asia Pacific Banking-as-a-Service (BaaS) Market Size, By Enterprise, By Value, Market Share (%), 2023-2030 (USD Billion)
      6.3.Asia Pacific Banking-as-a-Service (BaaS) Market, By Enterprise, By Value, - 
            6.3.1.SMEs
            6.3.2.Large Enterprises
Chapter 7 Asia Pacific Banking-as-a-Service (BaaS) Market Segmentation: By Service
      7.1.Asia Pacific Banking-as-a-Service (BaaS) Market, By Service, Overview/Analysis, 2023-2030
      7.2.Asia Pacific Banking-as-a-Service (BaaS) Market Size, By Service, By Value, Market Share (%), 2023-2030 (USD Billion)
      7.3.Asia Pacific Banking-as-a-Service (BaaS) Market, By Service, By Value, - 
            7.3.1.Banking IaaS
            7.3.2.Banking as a Platform
            7.3.3.FinTech SaaS
            7.3.4.NBFCs
Chapter 8 Asia Pacific Banking-as-a-Service (BaaS) Market Segmentation: By Region
      8.1.Asia Pacific Banking-as-a-Service (BaaS) Market Size, By Value, 2023-2030 (USD Billion)
            8.1.1.China
            8.1.2.India
            8.1.3.Japan
            8.1.4.South Korea
            8.1.5.Australia
            8.1.6.ASEAN
            8.1.7.Rest of APAC
Chapter 9 Company Profiles
      9.1.Key Players
            9.1.1.OneConnect
                  9.1.1.1.Company Overview
                  9.1.1.2.Type Portfolio
                  9.1.1.3.Financial Overview
                  9.1.1.4.Business Strategy
                  9.1.1.5.Key Developments
            9.1.2.Du Xiaoman Financial
            9.1.3.Jiedaibao
            9.1.4.Ping An Insurance
            9.1.5.Money Forward
            9.1.6.Kyash
            9.1.7.Moneycatcha
            9.1.8.Policybazaar
            9.1.9.Razorpay
            9.1.10.Paytm
            9.1.11.MoneyTap
            9.1.12.ZestMoney
      9.2. Key Findings
      9.3. Recommendations

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