The trend: Continuing the rush of big-name financial institutions entering the banking as a service (BaaS) space, global payments firm Marqeta added a suite of BaaS products to its card-issuance platform, per FinExtra.
Becoming a bank: The seven products will be housed under the name Marqeta for Banking and will provide end-to-end banking services to its clients.
Payments, meet banking: A sub-trend within the growing BaaS trend is the expansion of payments firms into the banking space.
BaaS grows up: In the US, the BaaS market will reach over $25 billion in annual revenues in 2026, according to Cornerstone Advisors. But we are seeing a rapid maturation of the technology occurring now.
The big takeaway: Expect to see more well-known FIs launch BaaS platforms over the next few months. With the proliferation of fintechs, neobanks, and other digital-native apps, the desire for these entities to embed financial products within their own platforms will keep demand for BaaS running high. But as these big providers start to push out their smaller competitors, keep an eye on what those competitors do next.
This article originally appeared in Insider Intelligence’s Banking Innovation Briefing—a daily recap of top stories reshaping the banking industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.
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