BANKING-AS-A-PLATFORM REVENUE INCREASES TO US$49 BLN IN 2028 - JUNIPER RESEARCH

KUALA LUMPUR, Aug 7 (Bernama) -- Global revenue from Banking-as-a-Platform (BaaP) services will increase to US$49 billion globally in 2028, from US$4 billion in 2023, according to a new study from Juniper Research. (US$1=RM4.54)

In a statement, Juniper Research said the study argued BaaP can help traditional banks regain their competitive edge against neobanks.

Through collaboration with innovative vendors, banks can offer new services from partners, including embedded insurance, lifestyle offers with leading brands, or access to human resource services for small businesses.

The study argues banks can utilise partnerships with industry leaders to build upon their core banking model, helping them compete with fintechs by offering more user-friendly services.

Compared with traditional acquisitions, BaaP partnerships are highly flexible and can be easier to integrate, as banks transition to application programming interface (API)-focused models.

By offering a wide range of services via BaaP, banks can gain a competitive edge without having to stray from their core business.

According to the report, banking marketplaces are the most effective way for banks to adapt to the digital age, helping them create financial services ecosystems that offer personalised customer experiences, without developing services themselves.

Juniper Research recommends banks evaluate which services are core, and which services can be replaced by working with innovative third parties; enabling banks to improve services being offered, while reducing costs in a difficult economic climate.

-- BERNAMA