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Banking-as-a-Platform Market Revenue set for 1,125% Rise by 2028

Global revenue from Banking-as-a-Platform (BaaP) services could rise to as much as $49billion globally in 2028, rising from $4billion in 2023. The forecast from Juniper Research, the market research firm, comes from its latest study regarding the potential of BaaP.

Juniper Research explained that BaaP could help traditional banks regain a key competitive edge against digital-first banks. Through collaboration with innovative vendors, banks could offer new services from partners, including embedded insurance, lifestyle offers with leading brands or access to HR services for small businesses.

But what does Banking-as-a-Platform mean? Juniper defines it as a “business model that enables third-party partners to build products and services for bank customers; most commonly a technology company that can provide APIs while the bank manages data exchange, oversees authentication and ensures compliance.”

Banking as a platform BaaP Juniper Research
How BaaP works. Source: Juniper Research

As Juniper Research predicts that the BaaP market revenue is set to grow by over 1,125 per cent by 2028, it explained that much of this growth will be driven by traditional banks. Banks could partner with industry leaders to expand their core banking models. This approach could help them compete with more flexible fintechs by offering more user-friendly services.

When compared to traditional acquisitions, BaaP partnerships are flexible and can be easier to integrate – especially as banks transition to API-focused models.

The possibilities of Banking-as-a-platform “are endless”

The study, ‘Banking-as-a-Platform: Market Forecasts, Trends and Strategies 2023-2028‘ details how BaaP could change the face of banking across a number of different areas. Banking platform marketplaces have a wide range of offering: Revolut‘s marketplace includes apps that simplify shopping, holidays and donations.

Revolut has comprised its ‘Shop’ app, which enables customers to discover cashback and discounts on items from designer brands such as North Face, Nike and Hello Fresh. Revolut’s ‘Gifts’ app also enables customers to purchase and give digital gift cards to retailers such as XBOX, Deliveroo and Uber.

Banks using a marketplace can also enable customers to view a variety of savings and wealth management providers, and compare interest rates that are better suited to customers’ saving goals.

Saving accounts from platform banks offer protection of up to a total of £85,000 ($109,455) by the Financial Services Compensation Scheme (FSCS). For example, Monzo’s Savings Pots offer customers an easily accessible saving account option, with added benefits such as personalisation, added interest
rates and near-instant loans.

Overall, Juniper explains that by offering a wide range of services via BaaP, banks can gain a competitive edge without having to move away from their core business.


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