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

North America Banking-as-a-Service (BaaS) Market Overview:

BaaS is an end-to-end business model that allows digital banks and other third parties to interact directly with banks' systems through APIs, allowing them to develop banking solutions changing the global financial services environment. Emerging institutions that create their own BaaS systems offer up new income sources in addition to gaining ahead in open banking. Charging clients a monthly charge for access to the BaaS platform or charging a la carte (charge per the client requirement) for each service utilized are the two major monetization options for BaaS.

 

Embedded banking and banking-as-a-service (BaaS) have traditionally been associated with FinTech and financial services, but this is changing as non-financial services platforms mark their entrance into financial services. Apple and Goldman Sachs announced the debut of Apple Pay Later, a buy now, pay later i.e. BNPL service through Apple Pay, in July 2021, demonstrating how firms are attempting to provide direct financial services to their customers.

 

BBVA is the first bank in the United States to deploy a comprehensive portfolio of BaaS solutions, allowing third parties to implement their creative financial ideas while benefiting from BBVA's flexible and scalable infrastructure. The open banking-as-a-service platform includes features e.g. payment processing, KYC assessment, account creation and administration, card distribution, etc.

 

 

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North America Banking-as-a-Service (BaaS) Market Dynamics:

One of the major drivers of the North America Banking-as-a-Service (BaaS) Market is the enhanced customer experience offered by the BaaS system.

 

Different businesses can combine their offerings to give a seamless customer experience for their customers. Furthermore, providing BaaS services to enterprises in diverse areas, such as service mixing, aids banks in expanding their client bases. Many major banks are devoting significant resources to improving the customer experience, with varied outcomes. The major journeys of a customer's banking relationship vary from onboarding and transacting through maintenance and problem resolution. Effective transformations not only acknowledge the complexity of these linkages but also prioritize the aspects of the experience that matter most rather than deferring to current organizational structures to manage varying customer demands.

 

One of the major restraints in the North America Banking-as-a-Service (BaaS) Market is the constant threat of cyber security breaches.

 

To better serve their clients, many banks and financial institutions leverage third-party services from external providers. However, if these suppliers do not have stringent Cybersecurity measures in place, the bank that hired them would be severely harmed. For example, American Bank Systems (ABS), a company that provides services to U.S. financial institutions and banks helping them operate efficiently and confidently in a rapidly evolving highly regulated environment was hit by a ransomware attack in November 2020. The leaked data contained loan documents, emails, contacts, etc.

 

North America Banking-as-a-Service (BaaS) Market Segment Analysis:

By Service, FinTech software-as-a-service sector is expected to grow at the highest CAGR of 11.5% in the forecast period (2024-2030). This can be attributed to the rapidly growing digital payments market in the United States. Consumer transactions are at the heart of digital payment. Given the amount of product and service transactions that occur in the United States daily, digital payment has emerged as a critical driver of fintech segment growth in the North America Banking-as-a-Service (BaaS) Market.

 

Fintech plays a critical role in the US economy, as seen by its 46% share of the global fintech sector. This has been achieved because the American customer has grown aware of the various advantages that the fintech business provides. They recognize and appreciate the ease, simplicity, security, transparency, and personalization provided by the numerous fintech technologies brought to the market over the previous decade.

 

Fintech's capacity to issue loans at reduced costs is one of the most crucial aspects that has made fintech and its products, such as company growth loans, so popular among entrepreneurs. In addition, the Federal Reserve of the United States has made a significant contribution by maintaining interest rates low, between 1.5% and 1.7%.

North America Banking-as-a-Service (BaaS) Market Regional Insights:

The Digital Payment industry in the United States and Canada is responsible for the growth of the Noeth America BaaS market in the region.

 

In-store mobile payments in the United States are expected to reach $150 billion in 2030, according to Insider Intelligence, while Apple Pay already accounts for 92% of mobile wallet transactions in the United States. Canada recorded 200 fintech deals in 2019, bringing in $2.7 billion of investment. With 60% of Canada’s fintech located in Ontario.

 

Canada provides exciting potential for the fintech industry. Customers in Canada, unlike in other areas of the globe, value big banks and their decades of experience. Recognizing this dynamic, fintech is exploring the prospect of partnering with traditional institutions while also competing against them.

 

The purpose of this research is to provide stakeholders in the industry with a thorough insight into the North American 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 North America 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 North America Banking-as-a-Service (BaaS) Market by product, price, financial situation, product portfolio, growth plans, and geographical presence.

 

Breakthroughs in the cable connector 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.

 

North America Banking-as-a-Service (BaaS) Market Scope:

North America Banking-as-a-Service (BaaS) Market
Market Size in 2023	USD 101.97 Bn.
Market Size in 2030	USD 235.47 Bn.
CAGR (2024-2030)	12.7%
Historic Data	2018-2022
Base Year	2023
Forecast Period	2024-2030
Segment Scope	By Type API-based BaaS Cloud-based BaaS
	By Enterprise SMEs Large Enterprises
	By Service Banking IaaS Banking as a Platform FinTech SaaS NBFCs
Country Scope	United States Canada Mexico

 

North America Banking-as-a-Service (BaaS) Market Players

• BBVA USA
• Green Dot.
• Square inc.
• Treasury Prime
• PayPal
• Moven
• Citigroup Inc
• Wells Fargo & Co
• JPMorgan Chase & Co. Chase Bank