Revenue earned by consumer broadband value-added services (BVAS) more than doubled during 2004 -- At the beginning of the year it was running at an annual rate of about $3.3 billion worldwide. By the end of the year the figure was $6.9 billion. This is the first time it has been possible to estimate the growth of this new market, using the data provided by the second edition of Point Topic's report on The Consumer BVAS Market. The BVAS market is vitally important for service providers who need to find ways of increasing the revenue they receive from broadband services. The 2004 results are good news for them from this point of view. Most value-added services delivered over broadband increased in both users and total revenues. Services such as video over broadband, music and voice over IP (VoIP) all grew strongly. The increase in the run-rate of revenues was much steeper than the growth in the number of consumer broadband lines, which grew about 45 percent to 131 million, or in consumer broadband access revenues, which grew by about 22 percent to $39 billion. Price cuts by both DSL and cable operators resulted in revenues growing more slowly than the number of lines.
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