
Finastra has published a market assessment report: “Banking as a Service: Outlook 2022 | Paving the way for Embedded Finance.” The research canvassed the opinions of 1,600 senior industry executives, exploring the opportunities presented by Banking-as-a-Service (BaaS) to provide retail or wholesale banking products and services to customers in context, as-a-service, using an existing licenced institution’s secure, regulated infrastructure with modern API-driven platforms.
The Finastra research reveals that APAC’s appetite for BaaS services exceeds that of EMEA and the Americas. Across APAC, 88% of senior executives in a number of sectors (including banking, healthcare, retail and technology) said they are already implementing BaaS solutions or are planning to, compared with 80% in EMEA and 87% in the Americas. Other key findings include:
- Over 46% of APAC distributors—the consumer brands that supply embedded financial products to consumers at the point of need—currently offer, or plan to offer, credit cards to their customers using BaaS, with other popular offerings including savings accounts (41%) and payment cards (38%).
- Distributors are spending USD $10–$50m per year on financial products and service partnerships across APAC—a high level of spending that is expected to be sustained throughout 2022.
- Globally, more than 80% of regulated financial services providers expect the overall BaaS market to grow. Of these, 30% expect it to grow by more than 50% per year over the next five years.
- BaaS represents a USD $7 trillion opportunity—distributors, including retailers, eCommerce firms and other consumer brands, are migrating towards BaaS solutions and expect overall growth to exceed 70% per year over the next three years globally; 60–70% of distributors want to increase their spending on financial partnerships (including BaaS).
Angus Ross, Chief Revenue Officer, Banking-as-a-Service at Finastra said, “There’s no doubt that BaaS is an incredibly exciting opportunity for the entire financial services ecosystem. Financial institutions can reach a greater number of customers at significantly lower cost, while distributor brands can open up new lines of revenue and build deeper relationships with their customers. It’s clear from our research that consumers (retail or corporate) are changing where they source financial services and shifting to non-bank channels. This trend will only accelerate as integrating regulated products into the customer journey becomes as simple as creating a social media account.”
Kelvin Tan, Global Lead at Standard Chartered Nexus, said, “Standard Chartered nexus is working with consumer brands of all sizes across APAC, such as Bukalapak, Indonesia’s first listed technology unicorn, and Sociolla, an Indonesian beauty eCommerce platform, to embed financial services on their ecosystems. We provide brands our expertise, banking licenses and a modern tech stack to offer partners’ customers personalised financial products, enabling lucrative new revenue streams and a ‘stickier’ ecosystem experience.”
Finastra’s research also assessed the monetization strategies of distributors, enablers and providers in BaaS, and explored the importance of partnerships. All respondents were in favour of a transition to a platform and marketplace model, where a greater range of niche solutions at competitive prices can be sourced by end customers.
Theodora Lau, Founder of Unconventional Ventures commented, “I am encouraged by the growing embedded finance ecosystem, especially as it relates to extending services to communities and businesses that have been traditionally underserved with limited offerings. Small businesses and entrepreneurs form the backbone of our economies. With thoughtful innovation, we have the opportunity to create a more level playing field and a more equitable future for all. Technology innovation ultimately needs to be about people.”
Jim Marous, Co-Publisher of The Financial Brand said, “Opportunities associated with BaaS are exploding in the banking ecosystem as organizations not only search for new ways to improve customer engagement and enhance experiences, but also find new sources of revenues from inside and outside the financial services marketplace.”
Finastra’s research shows that financial services providers need four key capabilities to work with distributors and enablers and to monetise BaaS. From a technology perspective, these include:
- an open API platform;
- an integrated data and analytics platform; and
- specialized digital solutions to seamlessly integrate customer journeys
From a product perspective, providers need dynamic and compelling offerings to entice customers.
Learn more about the BaaS opportunities available for distributors, enablers and providers—and the growth potential of different market segments—in the full market assessment report here.


Archive
- October 2024(44)
- September 2024(94)
- August 2024(100)
- July 2024(99)
- June 2024(126)
- May 2024(155)
- April 2024(123)
- March 2024(112)
- February 2024(109)
- January 2024(95)
- December 2023(56)
- November 2023(86)
- October 2023(97)
- September 2023(89)
- August 2023(101)
- July 2023(104)
- June 2023(113)
- May 2023(103)
- April 2023(93)
- March 2023(129)
- February 2023(77)
- January 2023(91)
- December 2022(90)
- November 2022(125)
- October 2022(117)
- September 2022(137)
- August 2022(119)
- July 2022(99)
- June 2022(128)
- May 2022(112)
- April 2022(108)
- March 2022(121)
- February 2022(93)
- January 2022(110)
- December 2021(92)
- November 2021(107)
- October 2021(101)
- September 2021(81)
- August 2021(74)
- July 2021(78)
- June 2021(92)
- May 2021(67)
- April 2021(79)
- March 2021(79)
- February 2021(58)
- January 2021(55)
- December 2020(56)
- November 2020(59)
- October 2020(78)
- September 2020(72)
- August 2020(64)
- July 2020(71)
- June 2020(74)
- May 2020(50)
- April 2020(71)
- March 2020(71)
- February 2020(58)
- January 2020(62)
- December 2019(57)
- November 2019(64)
- October 2019(25)
- September 2019(24)
- August 2019(14)
- July 2019(23)
- June 2019(54)
- May 2019(82)
- April 2019(76)
- March 2019(71)
- February 2019(67)
- January 2019(75)
- December 2018(44)
- November 2018(47)
- October 2018(74)
- September 2018(54)
- August 2018(61)
- July 2018(72)
- June 2018(62)
- May 2018(62)
- April 2018(73)
- March 2018(76)
- February 2018(8)
- January 2018(7)
- December 2017(6)
- November 2017(8)
- October 2017(3)
- September 2017(4)
- August 2017(4)
- July 2017(2)
- June 2017(5)
- May 2017(6)
- April 2017(11)
- March 2017(8)
- February 2017(16)
- January 2017(10)
- December 2016(12)
- November 2016(20)
- October 2016(7)
- September 2016(102)
- August 2016(168)
- July 2016(141)
- June 2016(149)
- May 2016(117)
- April 2016(59)
- March 2016(85)
- February 2016(153)
- December 2015(150)