The general adoption of banking-as-a-service platform across the whole of Japan in 2024 is estimated to be USD 283.2 million in terms of value. The demand for BaaS platforms in the country is projected to rise at an impressive 18.5% CAGR over the next ten years. The total demand for banking-as-a-service (BaaS) platforms is poised to reach around USD 1,549.7 million by 2034.
| Attributes | Details |
|---|---|
| Industry Size of Japan in 2024 | USD 283.2 million |
| Expected Industry Size of Japan by 2034 | USD 1,549.7 million |
| Forecasted CAGR between 2024 to 2034 | 18.5% |
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Improvements in digital literacy and infrastructure in Japan have led to increased adoption of modern-day financial solutions by both businesses and consumers. Banking-as-a-service solution developers in the country are recognizing this technological demand by providing digitally-first, user-friendly financial services.
Traditional financial institutions in Japan are looking for methods to reduce expenses and boost productivity by outsourcing non-core banking tasks to specialized service providers. Banking-as-a-service platforms or solutions are also continuously upgrading their software to improve their compliance with the evolving payment processes introduced over time.
The Financial Services Agency (FSA) of Japan has implemented several regulatory frameworks in recent years to foster cooperation between financial technology companies and traditional banks. Establishing a favorable atmosphere for suppliers of banking-as-a-service (BaaS) solutions and services is expected to further strengthen the sector in the country.
Principal Consultant
As per our findings, the platforms for banking-as-a-service in Japan could contribute to around 46.6% of the revenue of this sector in 2024.
| Banking-as-a-service (BaaS) Platform in Japan based on Solution | Banking as a Service Platform |
|---|---|
| Total Share (2024) | 46.6% |
BaaS platforms that incorporate innovative functions and intuitive user interfaces, for better communication between users and financial service providers, are expected to perform better. BaaS platform developers in Japan are placing increased emphasis on risk management and legal oversight, which is anticipated to further bolster this segment
The demand for banking-as-a-service platform in Japan is still higher in the banking sector and this could hold an estimated 35.1% share in 2024.
| Banking-as-a-service (BaaS) Platform in Japan based on End User | Banks |
|---|---|
| Total Share (2024) | 35.1% |
Banks constitute the leading end-user segment, as they utilize BaaS to expand their product range without the need for physical infrastructure extension. Banking institutions are also aiming to enhance customer retention by introducing smartphone-based applications developed using BaaS systems or platforms.
The overall landscape for the Japan banking-as-a-service (Baas) sector can be termed competitive, despite the presence of only a handful of companies providing such advanced services in the country. Adaptability is essential in the country, as regional and customer-specific preferences, along with compliance with national banking regulations, are highly stringent.
In recent years, there has been an upsurge in new players providing BaaS services after the collaboration of global banks with small finance companies. Since BaaS platforms are extensively configurable, new entrants can customize their products and services to match specific client demands, particularly those from smaller financial organizations..
Recent Developments in Banking-as-a-service (BaaS) Platform in Japan
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| Attribute | Details |
|---|---|
| Estimated Industry Size in 2024 | USD 283.2 million |
| Projected Industry Size by 2034 | USD 1,549.7 million |
| Anticipated CAGR between 2024 to 2034 | 18.5% CAGR |
| Historical Analysis of Demand for Banking-as-a-service (BaaS) Platform in Japan | 2019 to 2023 |
| Demand Forecast for Banking-as-a-service (BaaS) Platform in Japan | 2024 to 2034 |
| Report Coverage | Industry Size, Industry Trends, Analysis of key factors influencing Banking-as-a-service (BaaS) Platform in Japan, Insights on Global Players and their Industry Strategy in Japan , Ecosystem Analysis of Local and Japan Providers |
| Key Cities Analyzed while Studying Opportunities in Banking-as-a-service (BaaS) Platform in Japan | Kanto, Chubu, Kinki, Kyushu & Okinawa, Tohoku, Rest of Japan |
| Key Companies Profiled | GMO Payment Gateway; LINE Pay Services; Payke Co. Ltd.; Sony Bank Inc.; SBI Financial Group Co. Ltd.; Mitsubishi UFJ Financial Group; Sumitomo Mitsui Banking Corporation; Mizuho Financial Group; RAKUTEN GROUP, INC.; Lawson, Inc.; Aeon Co., Ltd.; Seven & i Holdings Co., Ltd.; FamilyMart Co., Ltd.; Japan Post Holdings Co., Ltd. |
The anticipated CAGR for banking-as-a-service platform in Japan through 2034 is 18.5%.
Demand for banking-as-a-service platform in Japan is likely to surpass USD 1,549.7 million by 2034.
BaaS service providers are now targeting small and medium sized financial institutions in Japan.
Banking as a service platform is set to lead with 46.6% revenue share in 2024.
Banking segment is likely to create 35.1% of the overall demand in Japan in 2024.
1. Executive Summary 2. Market Overview 3. Market Background 4. Industry Analysis and Outlook 2018 to 2022 and Forecast, 2023 to 2033 5. Industry Analysis and Outlook 2018 to 2022 and Forecast 2023 to 2033, By Solution 5.1. Banking as a Service Platform 5.2. Banking as a Service APIs 5.3. Services 5.3.1. Payment Processing Services 5.3.2. Digital Banking Services 5.3.3. KYC Services 5.3.4. Customer Support Services 5.3.5. Others 6. Industry Analysis and Outlook 2018 to 2022 and Forecast 2023 to 2033, By Enterprise Size 6.1. Small & Mid-Sized Enterprises (SMEs) 6.2. Large Enterprises 7. Industry Analysis and Outlook 2018 to 2022 and Forecast 2023 to 2033, By End-user 7.1. Banks 7.2. FinTech Corporations 7.3. Investment Firms 7.4. Others 8. Industry Analysis and Outlook 2018 to 2022 and Forecast 2023 to 2033, By Region 8.1. Kanto 8.2. Chubu 8.3. Kinki 8.4. Kyushu & Okinawa 8.5. Tohoku 8.6. Rest of Japan 9. Kanto Industry Analysis and Outlook 2018 to 2022 and Forecast 2023 to 2033 10. Chubu Industry Analysis and Outlook 2018 to 2022 and Forecast 2023 to 2033 11. Kinki Industry Analysis and Outlook 2018 to 2022 and Forecast 2023 to 2033 12. Kyushu & Okinawa Industry Analysis and Outlook 2018 to 2022 and Forecast 2023 to 2033 13. Tohoku Industry Analysis and Outlook 2018 to 2022 and Forecast 2023 to 2033 14. Rest of Industry Analysis and Outlook 2018 to 2022 and Forecast 2023 to 2033 15. Market Structure Analysis 16. Competition Analysis 16.1. Sopra Banking Software 16.2. Solarisbank AG 16.3. Bankable 16.4. Treezor 16.5. 11:FS Foundry 16.6. Clearbank Ltd. 16.7. Q2 Software, Inc. 16.8. Green Dot Corporation 16.9. Sterling National Bank 16.10. Banco Bilbao Vizcaya Argentaria (BBVA), S.A 16.11. Unit Finance Inc. 16.12. Starling Bank 16.13. Treasury Prime 16.14. ADVAPAY OÜ 16.15. Technisys 17. Assumptions & Acronyms Used 18. Research Methodology
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Banking-as-a-service (BaaS) Platform Industry Analysis in Japan
