Market consolidation and new models reshape Banking as a Service

Banking as a Service (BaaS) in Brazil is approaching a decisive stage of maturation and consolidation. After years of rapid growth and experimentation, the sector is entering a more mature phase, marked by companies’ adaptation to a clearer, more structured regulatory environment.

This movement follows regulation by the Central Bank of Brazil, which took effect at the end of 2025 and establishes more objective guidelines for the provision of BaaS services. By increasing legal certainty, transparency and clarity about the roles of regulated institutions and partner companies, the new rules reduce uncertainty and strengthen trust throughout the chain. For a market that developed rapidly, regulatory consolidation tends to serve as a foundation for development rather than an obstacle.

Alongside this adjustment — and also because of it — the outlook points to consolidation trends and new operating models. These include increased regulatory scrutiny, especially in anti-money laundering (AML) and cybersecurity. After a year marked by more sophisticated fraud and faster regulatory responses, both the BCB and financial institutions are expected to increase investment in detection, authentication and continuous monitoring. Security is no longer merely a compliance requirement and takes a central role in building trust and differentiating digital financial services.

Market data supports this view globally. A survey by Topaz and Celent of 1,023 financial institution leaders in 20 countries shows that 52% plan to increase investment in technology infrastructure, while 40.7% identify fraud prevention as a priority. Artificial intelligence emerges as the main ally in this process, cited by 53.9% of institutions as the basis for advanced fraud detection.

Another direct effect of higher regulatory standards is expected to be an increase in mergers, acquisitions and strategic partnerships. New security, governance and capital requirements raise compliance costs and tend to favor better-structured institutions. The expected result is a natural process of concentration, in which only the best-prepared players will be able to scale their business models sustainably.

Better-defined rules also create room for new ways to use BaaS. Companies can innovate with greater predictability, exploring more sophisticated applications aligned with regulatory requirements. The trend is toward more specialized solutions, focused on niches and offering a high degree of customization.

Another significant movement is the consolidation of own-brand fintechs and embedded finance. Retail, technology and service companies continue incorporating financial products into their customers’ journeys, offering credit and other services at the point of decision. The outlook includes advances in digital portability, real-time personalized offers and greater integration between financial services and digital platforms.

Despite this wave of opportunities, challenges remain. Defining responsibilities between service providers and recipients, applying recent security lessons and understanding BaaS’s role in democratizing credit will remain central to the debate. In 2026, the sector’s progress will depend on joint action by ecosystem participants, focused on responsibility, trust and strengthening the partnerships that sustain market innovation.

Rogério Melfi is executive director of ABBAAS — the Brazilian Association of Banking as a Service.

📌 Originally published in Época Negócios