Unlock the BaaS world—where finance meets innovation, making banking more accessible, efficient, and personalized.
The banking-as-a-service (BaaS) industry stands at the forefront of the banking revolution. BaaS growth potential is powered by digital shift, tech and fintech innovations, and changing consumer expectations. As more and more companies adopt BaaS solutions, investor interest in this promising sector is steadily growing.
Market growth, along with investor enthusiasm, is paving the way for BaaS startups to dive into a sea of opportunities:
It’s not always smooth sailing. Startups need to deal with the regulatory landscape, address tech issues, and know how to secure vital BaaS funding.
Our expert team is skilled in securing BaaS funding, managing M&A deals, creating solid business models and market entry strategies, and devising impeccable and visually appealing BaaS pitch decks.
Explore our BaaS market research to know more about industry trends, market and funding opportunities, and potential risks.
The BaaS market is expected to triple by 2032, reaching $16.3B.
In 2022, more than 85% of senior executives either implemented BaaS solutions or planned to do so.
Individuals were unbanked in 2021.
Of banks have adopted cloud-based banking solutions.
Over 26 million digital banking apps were downloaded in 2022.
Non-financial brands are willing to offer financial services to their customers, while banks are seeking to launch new banking services. All this leads to the surge in recent BaaS industry trends:
All together: combining all banking services to work better as a whole.
Keep it simple: making services easier, more transparent, and more straightforward.
Mix and match: offering unique and varied services tailored to different needs.
Quick to change: focusing on flexible decision-making and operations.
Why it matters: to know more about the set course of the BaaS industry, gain a competitive edge, and understand how to pitch to investors, BaaS startups should keep an eye on industry trends.
BaaS startups are reshaping the financial landscape, but they also face significant challenges.
It’s pivotal for BaaS startups to know and comply with numerous rapidly changing financial rules and regulations.
Failure to adhere to these standards and laws usually results in damage to the company’s reputation or legal consequences, like fines or even revocation of a license.
A case in point: in December 2021, Lithuania’s central bank fined European Merchant Bank €65K for not handling high-risk clients properly and several other AML violations.
To handle this challenge, BaaS startups need to:
Stats: third-party vendors were responsible for almost 90% of the data breaches in the financial sector. Plus, over 70% of customers claimed to leave the bank after a data leak.
The statistics highlight the necessity for BaaS startups to protect sensitive financial information. As financial platforms are prime targets for cyber attacks.
Must-haves for BaaS companies:
As BaaS startups grow, they must ensure their technology can handle more customers and transactions without service degradation.
Inability to scale up their technology correctly can lead to:
To avoid tech scaling problems, BaaS startups should:
A case in point: it took a Nigerian BaaS provider, Anchor, only one year to achieve a remarkable 9x growth in their client base. It happened due to their extensive offerings package and effective scaling strategies.
Attracting adequate BaaS funding comes with several obstacles due to:
Stats: Over 60% of startups close their doors, failing to secure funds during Pre-Seed and Series A funding stages.
Many investors are cautious about pouring big money into BaaS projects because of market volatility, regulatory changes, and tech disruptions.
To attract the attention of BaaS VCs, startups should:
With its considerable market growth potential and high profitability, the BaaS industry is increasingly attractive for potential VCs.
Given a strong market entry strategy and robust business model, coupled with a unique value proposition and persuasive BaaS pitch deck, it’s not that difficult to raise funding for BaaS startups.
Usually, our team needs from two to three weeks to craft a BaaS pitch deck and a financial model. Yet, in some cases, we may need more time. So, it’s better to contact us to know the exact time.
Most BaaS startup pitch decks lack a persuasive investment storyline and a clear market decision. Plus, the absence of a robust business strategy and proof of progress. Like this, BaaS venture capitalists don’t get the full picture and may shift their focus to a more promising and urgent project.
The BaaS market is brimming with various startups and numerous top industry players, all trying to get a competitive advantage and stand out.
We help VCs scrutinize their investment opportunities within the BaaS industry. Our team conducts thorough due diligence and presents findings in a concise, visually rich presentation packed with valuable insights. Plus, we provide comprehensive fundraising services to portfolio companies across the BaaS sector and beyond.
Yes, of course! Our experts help pinpoint the most beneficial M&A options, create compelling CIMs, and perform modeling for buy-side and sell-side deals.
Yes, we do! If your project matches criteria like round size, team, and product, we can help you pitch to top BaaS VCs. This service is just the tip of the iceberg of our investor relations package, which not only builds a pipeline of investors interested in BaaS but also gears up founders for the first meetings and ensures communication post-deal.
Sure thing! On request, our team can provide bespoke market insights on the BaaS industry. This service includes detailed industry reports, insightful competitor evaluations, and comprehensive market research. Utilizing data taken from credible databases, we facilitate a deep and broad understanding of the BaaS sector, highlighting its intricacies, potential, and competitive dynamics.
Our experts help not only in guiding BaaS startups through the Seed to Series B funding stages but also assist during Pre-Seed and Series C+ funding rounds, forging cooperation with the top players and investment funds.
Fuel your next stage of growth with Waveup—your one-stop shop for fundraising support, outsourced M&A advisory, growth strategy consulting, and presentation design. Leave your email, and let's chat!
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