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The Latin America - banking-as-a-service (BaaS) market size is estimated to grow at a CAGR of 14.27% between 2022 and 2027. The market size is forecast to increase by USD 2,430.08 million. The growth of the market depends on several factors such as the increasing adoption of BaaS solutions by end-users, the increasing number of fintech in the region, and the increasing efficiency of financial services.
This Latin America banking as a service market report extensively covers market segmentation by component (platform and services), type (cloud-based and API-based), and end-user (large enterprise, small, and medium enterprise). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The increasing adoption of BaaS solutions by end-users is the key factor driving the growth of the market. BaaS provides a wide range of banking services to financial institutions operating in the lending, accounting, and corporate finance sectors, giving businesses the opportunity to benefit from better services. These comprehensive benefits of implementing BaaS solutions will increase the demand from financial institutions. In addition, the use of BaaS solutions in NBFCs has also increased significantly as they facilitate competition in financial services by allowing non-bank players to offer services which in turn drive the growth of the Latin America - banking-as-a-service market.
Moreover, NBFC integrates BaaS functionality into their product and easily creates an end-to-end customer journey. NBFC is increasingly providing financial services such as bank accounts or digital wallets, loans, and payments. Hence, the increasing adoption of BaaS by various end users such as financial institutions and NBFCs is expected to drive the growth of the market during the forecast period.
Increasing marketing initiatives is the primary trend in the market. Major Latin America - banking-as-a-service market players create advertising campaigns, followed by marketing campaigns such as online ads, extensive social media and blogging programs, and interactive websites. Creative strategies increase brand credibility and awareness, drawing consumers into a company's products and services. Social media is an integral part of the marketing strategy, and visual content is a key factor in engaging customers and building online brand communities.
Additionally, Latin America - banking-as-a-service market players use social media channels such as Instagram to promote their ideas and expand their market reach. They post a variety of creative content on their Instagram feeds to expand the reach of their products and services. Therefore, increasing marketing initiatives is a growing trend and is expected to propel the growth of the market during the forecast period.
Implementation and data security challenges are major challenge that affects the growth of the market. The main challenges are legal and security issues, followed by a lack of understanding of existing products and the need to use more service providers. As big amounts of customer financial data have been digitized, important considerations such as security, liability, privacy, and intellectual property rights have emerged to prevent fraud in the financial services industry.
Moreover, information security and privacy is the main issue in the market. Since players in these markets handle sensitive customer data, many financial firms are concerned about the data being misused. As a result, some organizations are skeptical about the adoption of BaaS in their operations, which could create a major challenge to the growth of the market during the forecast period.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Latin America Banking as a Service Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Rappi Inc.: The company offers banking as a service through Nubank digital account.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market share growth by the platform segment will be significant during the forecast period. Banking-as-a-platform (BaaP) helps financial institutions utilize the expertise and resources, including infrastructure and applications, of a platform provider.BaaP allows financial institutions to opt for platform offerings that fit their needs, with the ability to scale and adapt as their needs change. By utilizing a platform business model, financial institutions can keep up to date with all that internet-based banking offers.
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The platform segment was the largest segment and was valued at USD 1,120.65 million in 2017. BaaP is versatile, as it allows data tracking across financial products, services, and applications to help financial institutions such as banks understand how their customers are interacting with their services. This allows institutions the insights necessary to focus their resources on which of the services offered that they most need. Such factors are expected to drive the growth of the platform segment in the Latin America - banking-as-a-service (BaaS) market during the forecast period.
The Latin America banking as a service market report forecasts market growth by revenue and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Latin America Banking As A Service Market Scope |
|
Report Coverage |
Details |
Page number |
156 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 14.27% |
Market growth 2023-2027 |
USD 2,430.08 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
13.45 |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Alau Technology SAU, Banco Inter S.A., Banco Sabadell SA, BICECORP SA, Credijusto, Creditas, Cuenca Tecnologia Financiera SA de CV, DOCK, EBANX, GIRE SA, Inteligencia en Finanzas S.A.P.I. de C.V., Maximo Pay SAC, MEXARREND S.A.P.I. DE C.V., Neon Pagamentos S.A., Nu Holdings Ltd., Rappi Inc., Revolut Ltd., Servicios Broxel SAPI de CV, UNIVERSO ONLINE SA, and Klar SA de CV |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Component
7 Market Segmentation by Type
8 Market Segmentation by End-user
9 Customer Landscape
10 Geographic Landscape
11 Drivers, Challenges, and Trends
12 Vendor Landscape
13 Vendor Analysis
14 Appendix
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