APAC Banking as a Service (BAAS) Market Size
| Study Period | 2020-2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 144.94 Billion |
| Market Size (2029) | USD 230.58 Billion |
| CAGR (2024 - 2029) | 9.80 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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APAC Banking as a Service (BAAS) Market Analysis
The APAC Banking-As-A-Service Market size is estimated at USD 144.94 billion in 2024, and is expected to reach USD 230.58 billion by 2029, growing at a CAGR of 9.80% during the forecast period (2024-2029).
Asia Pacific region is observing a sharp increase in its economic activities and is emerging as a leading digital transaction adoption market. With the rise in different services and businesses different models of payment are been adopted in the region of which BaaS is an upcoming market. Digital payment transaction volume in the region is observing a continuous increase in the region with digital commerce existing with more than half of the market share. This trend is resulting in different businesses adopting BaaS payment methods either directly through banks or by fintech companies.
BaaS as a system allows fintech companies and other third-party organizations to access the bank’s system via APIs and provide its services to the users without having any bank license. Asia Pacific is an emerging market with a continuously rising value of investment in fintech companies. This increase in the number of fintech companies resulted in the creation of new financial products as well as an increase in partnerships between banks and fintech companies for the service. Fintechs and other third-party players running a digital platform are using APIs and the data which banks provides to create new and innovative financial solutions targeting specific customer needs.
BaaS services provided by banks are resulting in a reduction of their customer acquisition cost and expanding their customer base. India, Singapore, and China are emerging as fintech funding countries in the Asia Pacific region leading the fintech space. Local players such as Paytm and Razorpay in India are resulting in an expansion of financial services access to a large amount of unbanked population. These emerging digital payments, financial inclusion, and expansion of financial services are leading to a significant rise in the Asia Pacific Banking As Service market.
APAC Banking as a Service (BAAS) Market Trends
Increase In Digital Banking
Post-COVID, the value of Digital banking transactions in the Asia Pacific region is observing a continuous increase with the increase in the number of users preferring to make digital transactions while rendering a service. Banking as a Service (BaaS) enables rapid and effortless expansion of digital payment services by the fintech companies without any requirement for a banking license and infrastructure. Mobile Banking, Mobile payment, Blockchain, Insurtech, and Digital lending are among some of the services that can be offered using BaaS. India, China, Singapore, and Indonesia are among the emerging Asia-Pacific countries with an increasing share of digital transactions in the region. The rise in the number of digital payment users combined with an increase in digital payment providers is leading to a positive growth outlook for Banking as a Service in Asia Pacific.
Rising Value of Transaction in the Region
China, Japan, India, and Australia are emerging as the Asia Pacific countries with the leading value of GDP in the region. This rise is leading to a large number of financial transactions and economic activities occurring in these countries creating demand for an increase in financial services products. Alternative finance, i.e. funding available outside traditional banks. in the region is observing significant growth with India, Indonesia, South Korea, and China existing in the leading position. Rising payment volume in the region through digital commerce and Mobile POS systems has observed an increase, with demand for digital financial services by different payment facilitators leading to the expansion of the Banking as a Service (BaaS) market in the region.
APAC Banking as a Service (BAAS) Industry Overview
The APAC Banking-As-A-Service Market is fragmented with a large number of small and large players existing in the market. 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. Some of the major players existing in the market are One Connect, Du Xiaoman Financial, Money Forward, and Policy Bazar, etc.,
APAC Banking as a Service (BAAS) Market Leaders
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One Connect
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Money Forward
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Razorpay
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Paytm
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Policy Bazaar
*Disclaimer: Major Players sorted in no particular order
APAC Banking as a Service (BAAS) Market News
- In January 2023, Yes Banks partnered with Banking-as-a-service (BaaS) start-up, Falcon to expand its market in the rapidly growing embedded finance market. The inclusion of BaaS will help Yes Bank to rationalize technology costs and significantly reduce time-to-market empowering the bank to launch its competitive offerings more frequently.
- In September 2023, Standard Chartered’s fintech investment launched Audax Financial Technology as a new product in its Banking-as-a-Service (BaaS) offering. The product is designed to assist banks and financial institutions in their digital transformation, and business models to serve new customer segments and generate additional revenue streams.
APAC Banking as a Service (BAAS) Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS AND INSIGHTS
- 4.1 Market Overview
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4.2 Market Drivers
- 4.2.1 Rise in Digital Banking in The Region
- 4.2.2 Rise in Volume of Financial Transaction
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4.3 Market Restraints
- 4.3.1 Higher Cost of BaaS Technology for Some Banking Entities.
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4.4 Market Opportunities
- 4.4.1 Rise in Government Initiatives Towards Digitizing Economy
- 4.4.2 Rise in Customized Financial Services Products by Businesses
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4.5 Industry Attractiveness - Porters' Five Forces Analysis
- 4.5.1 Threat of New Entrants
- 4.5.2 Bargaining Power of Buyers
- 4.5.3 Bargaining Power of Suppliers
- 4.5.4 Threat of Substitutes
- 4.5.5 Intensity of Competitive Rivalry
- 4.6 Technological Innovations in the Asia Pacific Banking-As-A-Service Market
- 4.7 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
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5.1 By Type
- 5.1.1 API Based BaaS
- 5.1.2 Cloud Based BaaS
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5.2 By Service Type
- 5.2.1 Payment Process Services
- 5.2.2 Digital Banking Services
- 5.2.3 KYC Service
- 5.2.4 Customer Support Services
- 5.2.5 Others
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5.3 By Enterprise
- 5.3.1 Large Enterprise
- 5.3.2 Small & Medium Enterprise
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5.4 By Country
- 5.4.1 China
- 5.4.2 India
- 5.4.3 Japan
- 5.4.4 South Korea
- 5.4.5 Indonesia
- 5.4.6 Vietnam
- 5.4.7 Malaysia
- 5.4.8 Australia
- 5.4.9 New Zealand
- 5.4.10 Rest of Asia-Pacific
6. COMPETITIVE LANDSCAPE
- 6.1 Market Concetration Overview
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6.2 Company Profiles
- 6.2.1 ZestMoney
- 6.2.2 MoneyTap
- 6.2.3 Paytm
- 6.2.4 OneConnect
- 6.2.5 Jiedaibao
- 6.2.6 Money Forward
- 6.2.7 Kyash
- 6.2.8 Moneycatcha
- 6.2.9 Policybazaar
- 6.2.10 Razorpay*
- *List Not Exhaustive
7. MARKET FUTURE TREND
8. DISCLAIMER AND ABOUT US
** Subject To AvailablityAPAC Banking as a Service (BAAS) Industry Segmentation
The banking as-a-services (baas) market is an end-to-end model that enables digital banks and other third parties to connect directly with bank systems via API, allowing them to build their banking offerings using the bank-regulated infrastructure while also unlocking the open banking opportunity and reshaping the financial services landscape.
The APAC banking-as-a-service market is segmented by type, by service type, by enterprise size, and by country. By service type the market is segmented into api-based baas and cloud-based baas). By service type, the market is segmented into payment process services, digital banking services, KYC services, customer support services, and others. By enterprise size, the market is segmented into large enterprises and small & medium enterprises. By country, the market is segmented into China, India, Japan, South Korea, Indonesia, Vietnam, Malaysia, Australia, New Zealand, and the rest of Asia-Pacific. The report offers market size and forecasts for the Asia Pacific banking as-a-services market in value (USD) for all the above segments.
| By Type | API Based BaaS |
| Cloud Based BaaS | |
| By Service Type | Payment Process Services |
| Digital Banking Services | |
| KYC Service | |
| Customer Support Services | |
| Others | |
| By Enterprise | Large Enterprise |
| Small & Medium Enterprise | |
| By Country | China |
| India | |
| Japan | |
| South Korea | |
| Indonesia | |
| Vietnam | |
| Malaysia | |
| Australia | |
| New Zealand | |
| Rest of Asia-Pacific |
APAC Banking as a Service (BAAS) Market Research FAQs
How big is the APAC Banking-As-A-Service Market?
The APAC Banking-As-A-Service Market size is expected to reach USD 144.94 billion in 2024 and grow at a CAGR of 9.80% to reach USD 230.58 billion by 2029.
What is the current APAC Banking-As-A-Service Market size?
In 2024, the APAC Banking-As-A-Service Market size is expected to reach USD 144.94 billion.
Who are the key players in APAC Banking-As-A-Service Market?
One Connect, Money Forward, Razorpay, Paytm and Policy Bazaar are the major companies operating in the APAC Banking-As-A-Service Market.
What years does this APAC Banking-As-A-Service Market cover, and what was the market size in 2023?
In 2023, the APAC Banking-As-A-Service Market size was estimated at USD 130.74 billion. The report covers the APAC Banking-As-A-Service Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the APAC Banking-As-A-Service Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
APAC Banking as a Service Industry Report
Statistics for the 2024 APAC Banking-As-A-Service market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. APAC Banking-As-A-Service analysis includes a market forecast outlook for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
