"According to Parks Associates, approximately 30 million U.S. households have a broadband connection, 50 million have either digital cable or direct broadcast satellite (DBS) television service, 18+ million households have a data networking solution, and 75% of U.S. households have a DVD player. As the number of advanced products and services increases, also boosting the number of companies involved in these digital markets, both the complexity and potential for these markets have escalated."
The BaaS model has been adopted across a wide range of industries due to its ability to streamline financial processes for non-banks and foster innovation. BaaS has several industry-specific use cases, where it creates new revenue streams. Banking as a Service (BaaS) is rapidly emerging as a growth market, allowing non-bank businesses to integrate banking services into their core products and online platforms. As defined by Juniper Research, BaaS is "the delivery and integration of digital banking services by licensed banks, directly into the products of non-banking businesses, commonly through the use of APIs." BaaS Market Development The core idea is that licensed banks can rent out their regulated financial infrastructure through Application Programming Interfaces (APIs) to third-party Fintechs and other interested companies. This enables those organizations to offer banking capabilities like payment processing, account management, and debit or credit card issuance without