India’s Banking-as-a-Service (BaaS) market is projected to grow from ₹84.8 billion in 2022 to ₹153.8 billion by 2030, at a CAGR of 6%. The surge will be driven by neobanks, embedded finance, and API-driven partnerships that allow non-banks to integrate payments, lending, and insurance seamlessly. With fintech-bank collaborations deepening and over 2,500 fintech startups expected to double by 2030, BaaS is becoming the backbone of India’s digital-first financial ecosystem.
Core Development
BaaS enables third-party providers to deliver financial products like digital wallets, payments, lending, and insurance without needing a banking license.
The growth is fueled by:
Open banking frameworks and regulatory support.
Fintech-bank partnerships to deliver customised solutions.
Demand for embedded finance across e-commerce, SaaS, and logistics.
Cloud-based scalability, allowing faster rollout of services.
Key Drivers / Issues
Rise of neobanks: Digital-first banks rely heavily on BaaS infrastructure to serve SMEs, retail, and youth customers.
API-driven banking: APIs are the backbone enabling seamless integration across platforms.
AI-powered solutions: Fraud detection, personalised banking, and compliance are being transformed by AI.
SME/MSME opportunity: Underserved segments represent the biggest growth market for customised financial products.
Stakeholder Impact
For fintechs, BaaS reduces entry barriers and accelerates innovation. Traditional banks gain new revenue by offering infrastructure-as-a-service. SMEs and consumers benefit from personalised, cost-efficient digital finance solutions. For regulators, the challenge is balancing innovation with financial stability.
Industry & Policy Reactions
The ResearchAndMarkets report highlights BaaS as central to India’s next fintech wave. Experts say embedded finance—integrating payments and lending within platforms like e-commerce and SaaS—will dominate. Policymakers see open banking as a way to foster competition, inclusion, and innovation.
Challenges Ahead
Regulatory clarity on data-sharing and compliance.
Building trust among users for non-bank-led financial products.
Managing systemic risks from fast-scaling fintechs.
Strategic Outlook
India’s BaaS growth reflects a broader shift toward platformised finance. By 2030, with neobanks and fintechs doubling in scale, BaaS will be a core enabler of financial inclusion, SME credit access, and digital adoption—cementing India as a global fintech hub.
Why This Matters
BaaS is reshaping how financial services are delivered—moving from banks as destinations to finance embedded everywhere. For India, this transition could unlock massive opportunities in inclusion, SME financing, and digital-first growth.
