BFC Bulletins Monthly News Digest
A recent study by Juniper Research predicts a significant increase in global banking-as-a-service (BaaS) revenue, from USD 36.4 billion this year to an expected growth of 158% by 2028. The growth will mainly be driven by the integration of application programming interfaces (APIs) across eCommerce and freelance platforms, allowing these platforms to offer innovative financial tools and open additional revenue streams. The BaaS model also promotes financial inclusion by providing tailored financial products to gig workers and freelancers such as short-term loans and income-smoothing solutions, which are often inaccessible through traditional banking methods. Despite the growing market, regulatory challenges such as increased compliance costs (especially around know-your-customer (KYC) processes) are raising entry barriers for smaller fintech companies.
