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Banking-as-a-Service is bringing forward innovative ways for organisations to construct cutting-edge financial services on top of the provider bank's regulated infrastructure. BaaS providers have made it easier for any organisation, from fintech startups to established platforms, to integrate the financial services traditionally offered by banks.
According to a Juniper Research report, the BaaS sector will be worth USD 11 billion in 2022 and is estimated to surpass USD 38 billion by 2027. Asia Pacific is predicted to grow at the fastest rate during this time due to the region's developing IT infrastructure and increasing emphasis on financial inclusion.
BaaS is a viable option for licensed banks to close the gap between where they are and where they envision themselves in the banking industry. By sourcing products through BaaS, banks can replace their internal procedures and outdated systems.
BaaS providers are enabling banks and Fintechs to provide better financial services, innovation, and a far better customer experience by providing access to financial services offered via third-party APIs. Furthermore, BaaS promotes financial transparency, resulting in seamless and personalised financial solutions for the global banking and Fintech sectors.
"With neobanking gaining traction faster than ever, Banking-as-a-Service has become the habitat for the emergence of new-age Fintechs and simplifying of banking to the consumer."