Europe Banking as a Service (BaaS) Market Analysis
The Europe Banking-As-A-Service Market is expected to register a CAGR of greater than 7% during the forecast period.
The changing landscape of the banking and financial services business has led end-users to adopt innovative digital banking solutions that offer ease and efficiency while lowering costs for banks and other service providers, resulting in market growth.
Due to Covid-19, Demand for BaaS platforms increased in medium and small-sized enterprises as there is a rise in an adaption of digital banking services across several domains in Europe. Integration of artificial intelligence, blockchain technology, and API services within internet banking lead to the growth of the market.
Treezor, a French Banking-as-a-Service (BaaS) and expert in embedded finance, continued to develop by obtaining an authorization extension from the French regulator (ACPR) to provide all payment services and became the first Payment and Electronic Money Institution to have every type of authorization in 2021.
Europe Banking as a Service (BaaS) Market Trends
Increasing Demand for Embedded Finance Driving Banking as a Service.
Embedded finance revenue in Europe is about to reach USD 40,000 million in 2022, gaining demand among consumers due to the rising popularity of the buy now pay later lending model. the pandemic has also pushed the demand for embedded lending in crucial industry segments across European countries. Retailers in Europe are embracing new embedded finance offerings, with 56% of vendors launching new products in 2022.
In comparison to other European countries, embedded lending is most widespread in the United Kingdom. The United Kingdom was one of the first countries to use embedded lending to finance purchases. Retail finance is seen as a simple way for shoppers in the United Kingdom to spread the expense of large purchases.
The Rise in Adoption of Banking-as-a-Service Platform in Large Organizations Boosting the BaaS Market
The use of BaaS platforms in large organizations segment is more than in small and medium-sized enterprises. It accounts for more than 50% market share in Europe and is expected to continue its domination as it is increasing its customer base by investing in digital transformation to offer tech-savvy banking operations.
The demand for BaaS platforms in the large enterprises segment is anticipated to be driven by organizations' growing inclination for reliable service platforms and automation capabilities.
Europe Banking as a Service (BaaS) Industry Overview
The report covers major players operating in the European banking-as-a-service market. In terms of market share, few of the major players currently dominate the market. However, with technological advancement and service innovation, mid-size to large-size companies are increasing their market presence by securing new contracts and tapping new markets. It has major players, including Solaris bank, Treezor, Bankable, and Clear Bank.
Europe Banking as a Service (BaaS) Market Leaders
Solarisbank
Bankable
Treezor
11:FS Foundary
Clear Bank
Unnax
- *Disclaimer: Major Players sorted in no particular order
Europe Banking as a Service (BaaS) Market News
On May 05, 2022, Solaris bank announced that it would partner with Snowflake, the Data Cloud company, to double down on creating a cloud-fluent organization.
On July 22, 2021, Bankable partnered with Pay safe and launched a broad range of integrated, omnichannel banking services from Pay safe. Under this agreement, Paysafe uses Bankable's core banking services.