Europe Banking as a Service (BaaS) Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | 7.00 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
Europe Banking as a Service (BaaS) Market Analysis
Banking-as-a-service in Europe is growing at a significant rate and is expected to grow 3 times in the next few years. The United Kingdom is the largest market for banking-as-a-service (BaaS) platforms due to the strong presence of banking-as-a-service (BaaS) platform providers and accounts for approximately 25% of Europe's market share.
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
This section covers the major market trends shaping the Europe Banking-as-a-Service Market according to our research experts:
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.
Europe 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
- 4.2 Market Drivers
- 4.3 Market Restraints
- 4.4 Insights on Various Regulatory Landscape
- 4.5 Insights on impact of technology and innovation in the market
-
4.6 Industry Attractiveness - Porters' Five Forces Analysis
- 4.6.1 Threat of New Entrants
- 4.6.2 Bargaining Power of Buyers
- 4.6.3 Bargaining Power of Suppliers
- 4.6.4 Threat of Substitutes
- 4.6.5 Intensity of Competitive Rivalry
- 4.7 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
-
5.1 By Component
- 5.1.1 Platform
- 5.1.2 Service
- 5.1.2.1 Professional Service
- 5.1.2.2 Managed Service
-
5.2 By Type
- 5.2.1 API Based BaaS
- 5.2.2 Cloud Based BaaS
-
5.3 By Enterprise
- 5.3.1 Large Enterprise
- 5.3.2 Small & Medium Enterprise
-
5.4 By End User
- 5.4.1 Banks
- 5.4.2 Fintech Corporations/NBFC
- 5.4.3 Others
-
5.5 By Country
- 5.5.1 United Kingdom
- 5.5.2 Germany
- 5.5.3 Switzerland
- 5.5.4 France
- 5.5.5 Italy
- 5.5.6 Spain
- 5.5.7 Rest of Europe
6. COMPETITIVE LANDSCAPE
- 6.1 Market Concetration Overview
-
6.2 Company Profiles
- 6.2.1 Solarisbank
- 6.2.2 Bankable
- 6.2.3 Treezor
- 6.2.4 11:FS Foundary
- 6.2.5 Clear Bank
- 6.2.6 Unnax
- 6.2.7 Cambr
- 6.2.8 Rails bank
- 6.2.9 Deposits Solutions
- 6.2.10 Fidor Bank
- 6.2.11 True Layer
- 6.2.12 FintechOS*
- *List Not Exhaustive
7. MARKET OPPORTUNTIES AND FUTURE TRENDS
8. DISCLAIMER AND ABOUT US
Europe Banking as a Service (BaaS) Industry Segmentation
Banking as a Service (BaaS) is a business model in which licensed banks incorporate their digital banking services directly into the products of non-bank enterprises. The European Banking-As-A-Service Market is segmented by component (platform and service (professional service and managed service)), by type (API-based BaaS and Cloud-based BaaS), by enterprise size (large enterprise and small and medium enterprise), by end-user (banks, NBFC/fintech corporations and others) and by country (United Kingdom, Germany, Switzerland, France, Italy, Spain, and Rest of Europe).
| By Component | Platform | |
| Service | Professional Service | |
| Managed Service | ||
| By Type | API Based BaaS | |
| Cloud Based BaaS | ||
| By Enterprise | Large Enterprise | |
| Small & Medium Enterprise | ||
| By End User | Banks | |
| Fintech Corporations/NBFC | ||
| Others | ||
| By Country | United Kingdom | |
| Germany | ||
| Switzerland | ||
| France | ||
| Italy | ||
| Spain | ||
| Rest of Europe |
Europe Banking as a Service (BaaS) Market Research FAQs
What is the current Europe Banking-As-A-Service Market size?
The Europe Banking-As-A-Service Market is projected to register a CAGR of greater than 7% during the forecast period (2024-2029)
Who are the key players in Europe Banking-As-A-Service Market?
Solarisbank, Bankable, Treezor, 11:FS Foundary, Clear Bank and Unnax are the major companies operating in the Europe Banking-As-A-Service Market.
What years does this Europe Banking-As-A-Service Market cover?
The report covers the Europe Banking-As-A-Service Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Europe Banking-As-A-Service Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Europe Banking as a Service Industry Report
Statistics for the 2024 Europe Banking as a Service market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Europe Banking as a Service analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
