Total Banking-as-a-Service platform revenue to skyrocket 

The total revenue derived from Banking-as-a-Service platforms will be over $38bn globally by 2027 says research house Juniper. 

  • Why it matters: Brands are using Banking-as-a-Service, or more particularly, embedded finance, to take control of their own customer finance journey proposition. And that means a sea-change for banks, as they spend less time consumer facing, and more time providing the system plumbing, along with more efficient, non-bank providers. 

The bigger picture: This is all about winning the hearts and minds of those who shop via apps. Banking-as-a-Service has the ability to deepen relationships between brands and their customers by providing a user-friendly banking and payments experience. And non-banking providers can offer their customers financial services without owning a banking licence, or infrastructure. This allows brands to generate new revenue without using time and resources to generate new capabilities in house.

Embedded finance? Think how Uber takes the taxi fare seamlessly from the downloaded customer app, or Starbucks does the same with a coffee purchase. That’s embedded finance in a nutshell.

The current Banking-as-a-Service platform revenue is $11bn (2022) and the top three vendors are Green Dot, Marqeta and Solaris.