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Europe Banking-as-a-Service (BaaS) Market: Industry Analysis and Forecast (2024-2030)
Europe Banking-as-a-Service (BaaS) Market size was valued at US$ 116.98 Billion in 2023 and The Market revenue is expected to grow at 9.4% .
Format : PDF | Report ID : SMR_224
Europe Banking-as-a-Service (BaaS) Market Overview:
The successful integration of banking products and services into other types of consumer activity, often on non-financial online platforms, enables banking as a service. Consumers are increasingly turning to these platforms for services including e-commerce, travel, leisure, medical, and telecom. A fintech service may include someone taking out a modest loan while booking a vacation on a travel site; the fast calculation and sale of micro-insurance for recently acquired jewelry; or a small business addressing cash flow issues with an e-commerce site's instant working capital loan.
A non-financial company can thus distribute financial goods under its brand, giving the impression that the client is purchasing a product from that company, even when the financial product is offered by a financial institution. A financial institution that wishes to provide BaaS through a distributor can build a platform for that purpose using the most up-to-date low-cost, cloud-based technology, lowering its cost of serving consumers.
The open banking system, which is part of the updated Payment Services Directive, was implemented in the UK and Europe in January 2018, allowing new participants into the banking industry while also allowing new goods and services to improve the consumer experience.
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Europe Banking-as-a-Service (BaaS) Market Dynamics:
The rise of new fintech startups in the European region is one of the major drivers of the BaaS market in the region.
SolarisBank, which was founded in 2016, provides customers with a modern REST API that allows them to incorporate financial services into their offerings. The team is concentrating on developing fully automated procedures, providing end-users with practically undetectable infrastructure, and establishing a worldwide digital environment in which consumers may create their scalable financial solutions. The company now has nearly 60 global corporate clients.
The rise of various payment solutions platforms is the key opportunity for the European BaaS market.
For example, Treezor is a banking services platform that serves as a one-stop-shop for accepting and sending payments. The company enables payment management by allowing over 25 fintech clients, both licensed and unregistered, to give personalized credit and debit cards and dedicated International Bank Account Numbers to its consumers. The Paris-based firm was founded in 2015 and is a member of the Mastercard as well as being recognized by the French Prudential Supervision and Resolution Authority. In 2018, Societe Generale purchased Treezor to expedite the parent company's open innovation agenda.
Europe Banking-as-a-Service (BaaS) Market Segment Analysis:
By Service, the Baking IaaS segment is expected to witness the fastest growth rate of 10.3% in the forecast period. This can be attributed to European countries’ push to build new financial infrastructure. On the horizon are significant changes to Europe's financial infrastructure. Concerns over sociopolitical and fiscal policy control have prompted the creation of central bank digital currencies. If CBDCs capture 25% of total deposits, they might be disruptive, putting US$11.4 billion to US$25 billion in income at risk. More broadly, the banking system must work together with legislators and regulators, as well as with one another, to develop and implement system-wide changes.
Banking as a platform segment is expected to follow the banking IaaS segment in terms of overall growth. This can be attributed to many factors e.g. New means of accessing banking products might account for 10% of non-mortgage lending, savings, and payments markets for retail and SME consumers in the next ten years. Given that these new ecosystems tend to provide greater-margin, shorter-term gains, this might translate to US$45.7 billion in revenue. To compete with fast-moving fintech and huge tech competitors, banks are expected to be aggressive in developing consumer-centered services and ecosystems or choose from a variety of collaboration methods that provide integrated financing.
Europe Banking-as-a-Service (BaaS) Market Regional Insights:
Germany is a significant FinTech market in Europe and the world's fourth-largest. Many FinTech businesses are establishing operations in Germany, providing specialized and more customer-oriented financial services through the use of technology-based systems. International FinTech businesses are opening offices in Germany to service the enormous domestic market, and the German market is becoming increasingly appealing. Services can be delivered from Germany to other EU nations through EU passport services.
An increasing number of FinTechs are based in Germany. According to a recent survey, the industry employs roughly 1000 people. After mobility, FinTechs earn the second-highest amount of venture capital financing in Germany. In 2023, Germany's venture capital investment in FinTech, InsurTech, and PropTech startups was US$ 866 million.
The purpose of this research is to provide stakeholders in the industry with a thorough insight into the European 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 Europe 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 European Banking-as-a-Service (BaaS) Market by product, price, financial situation, product portfolio, growth plans, and geographical presence.
Breakthroughs in the European BaaS 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.
Europe Banking-as-a-Service (BaaS) Market Scope:
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Europe Banking-as-a-Service (BaaS) Market |
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Market Size in 2023 |
USD 116.98 Bn. |
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Market Size in 2030 |
USD 219.40 Bn. |
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CAGR (2024-2030) |
9.4 Percent |
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Historic Data |
2018-2022 |
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Base Year |
2023 |
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Forecast Period |
2024-2030 |
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Segment Scope |
by Type
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by Service
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by Service
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Country Scope |
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Europe Banking-as-a-Service (BaaS) Market Players:
- Spendesk
- Rydoo
- TransferGo
- Luno
- Ebury Partners
- Starling Bank
- Thought Machine
- Bankable
Frequently Asked Questions
The rise of new fintech startups in the European region is one of the major drivers of the BaaS market in the region.
The key players in the Europe Banking-as-a-Service (BaaS) Market are Luno, Bankable, etc.
the Baking IaaS segment is expected to witness the fastest growth rate of 10.3% in the forecast period.
Chapter 1 Scope of the Report
Chapter 2 Research Methodology
2.1. Research Process
2.2. Europe Banking-as-a-Service (BaaS) Market: Target Audience
2.3. Europe Banking-as-a-Service (BaaS) Market: Primary Research (As per Client Requirement)
2.4. Europe 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. Europe 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. Europe Market Share Analysis, By Type, By Value, 2023-2030 (In %)
4.1.2.1.1. UK Market Share Analysis, By Type, By Value, 2023-2030 (In %)
4.1.2.1.2. France Market Share Analysis, By Type, By Value, 2023-2030 (In %)
4.1.2.1.3. Germany Market Share Analysis, By Type, By Value, 2023-2030 (In %)
4.1.2.1.4. Italy Market Share Analysis, By Type, By Value, 2023-2030 (In %)
4.1.2.1.5. Spain Market Share Analysis, By Type, By Value, 2023-2030 (In %)
4.1.2.1.6. Sweden Market Share Analysis, By Type, By Value, 2023-2030 (In %)
4.1.2.1.7. Austria Market Share Analysis, By Type, By Value, 2023-2030 (In %)
4.1.2.1.8. Rest of Europe 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. Europe Market Share Analysis, By Enterprise, By Value, 2023-2030 (In %)
4.1.3.1.1. UK Market Share Analysis, By Enterprise, By Value, 2023-2030 (In %)
4.1.3.1.2. France Market Share Analysis, By Enterprise, By Value, 2023-2030 (In %)
4.1.3.1.3. Germany Market Share Analysis, By Enterprise, By Value, 2023-2030 (In %)
4.1.3.1.4. Italy Market Share Analysis, By Enterprise, By Value, 2023-2030 (In %)
4.1.3.1.5. Spain Market Share Analysis, By Enterprise, By Value, 2023-2030 (In %)
4.1.3.1.6. Sweden Market Share Analysis, By Enterprise, By Value, 2023-2030 (In %)
4.1.3.1.7. Austria Market Share Analysis, By Enterprise, By Value, 2023-2030 (In %)
4.1.3.1.8. Rest of Europe 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. Europe Market Share Analysis, By Service, By Value, 2023-2030 (In %)
4.1.4.1.1. UK Market Share Analysis, By Service, By Value, 2023-2030 (In %)
4.1.4.1.2. France Market Share Analysis, By Service, By Value, 2023-2030 (In %)
4.1.4.1.3. Germany Market Share Analysis, By Service, By Value, 2023-2030 (In %)
4.1.4.1.4. Italy Market Share Analysis, By Service, By Value, 2023-2030 (In %)
4.1.4.1.5. Spain Market Share Analysis, By Service, By Value, 2023-2030 (In %)
4.1.4.1.6. Sweden Market Share Analysis, By Service, By Value, 2023-2030 (In %)
4.1.4.1.7. Austria Market Share Analysis, By Service, By Value, 2023-2030 (In %)
4.1.4.1.8. Rest of Europe Market Share Analysis, By Service, By Value, 2023-2030 (In %)
4.2. Stellar Competition matrix
4.2.1. Europe 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
4.4.1. M&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 Europe Banking-as-a-Service (BaaS) Market Segmentation: By Type
5.1. Europe Banking-as-a-Service (BaaS) Market, By Type, Overview/Analysis, 2023-2030
5.2. Europe Banking-as-a-Service (BaaS) Market, By Type, By Value, Market Share (%), 2023-2030 (USD Billion)
5.3. Europe Banking-as-a-Service (BaaS) Market, By Type, By Value, -
5.3.1. API-based BaaS
5.3.2. Cloud-based BaaS
Chapter 6 Europe Banking-as-a-Service (BaaS) Market Segmentation: By Enterprise
6.1. Europe Banking-as-a-Service (BaaS) Market, By Enterprise, Overview/Analysis, 2023-2030
6.2. Europe Banking-as-a-Service (BaaS) Market Size, By Enterprise, By Value, Market Share (%), 2023-2030 (USD Billion)
6.3. Europe Banking-as-a-Service (BaaS) Market, By Enterprise, By Value, -
6.3.1. SMEs
6.3.2. Large Enterprises
Chapter 7 Europe Banking-as-a-Service (BaaS) Market Segmentation: By Service
7.1. Europe Banking-as-a-Service (BaaS) Market, By Service, Overview/Analysis, 2023-2030
7.2. Europe Banking-as-a-Service (BaaS) Market Size, By Service, By Value, Market Share (%), 2023-2030 (USD Billion)
7.3. Europe 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 Europe Banking-as-a-Service (BaaS) Market Segmentation: By Region
8.1. Europe Banking-as-a-Service (BaaS) Market Size, By Value, 2023-2030 (USD Billion)
8.1.1. UK
8.1.2. France
8.1.3. Germany
8.1.4. Italy
8.1.5. Spain
8.1.6. Sweden
8.1.7. Austria
8.1.8. Rest of Europe
Chapter 9 Company Profiles
9.1. Key Players
9.1.1. Spendesk
9.1.1.1. Company Overview
9.1.1.2. Product Portfolio
9.1.1.3. Financial Overview
9.1.1.4. Business Strategy
9.1.1.5. Key Developments
9.1.2. Rydoo
9.1.3. TransferGo
9.1.4. Luno
9.1.5. Ebury Partners
9.1.6. Starling Bank
9.1.7. Thought Machine
9.1.8. Bankable
9.2. Key Findings
9.3. Recommendations
