• Financial institutions need to race towards the open, collaborative ecosystem and shared economy where they can create more excellent customer value
• The ability to harness and monetise the power of data becomes paramount as a differentiating competitive advantage
• Need for digital identity and inclusive data for building customer trust.

In these exceptional times of rapid technology revolution and entry of new players, the financial industry is challenging the order of the past. Institutions are at an inflexion point where they need to change the mindset and embrace the technology transformation immediately to maintain their leadership and customer trust.

Mounting need to move towards open banking and shared ecosystem

At the core of the discussion was the urgent need for financial institutions to move towards a shared ecosystem and lifestyle services that benefit customers from network effects of aggregation. It is no longer an option but rather a ‘must’ as fintech platforms rapidly acquire customers at a much faster pace than banks ever did. The openness could emanate not just technology collaboration but also from collaborative business models.

Open banking models could vary. The collaboration could be through application programming interfaces (API) that integrate partners in an ecosystem of services, and also function as a tool for customer acquisition. The alternate business model could be where institutions create a marketplace with multiple service
providers. The ‘Banking as a service’ model has evolved from the realisation that as institutions create modern digital banking infrastructure that often runs on cloud, then they could offer it as a service to create entirely new banks.

“There is no single business model that works; it could be a combination of models. We have over 300 API that connects to various systems and companies. They allow us to offe...

Categories:

Keywords:

• Financial institutions need to race towards the open, collaborative ecosystem and shared economy where they can create more excellent customer value
• The ability to harness and monetise the power of data becomes paramount as a differentiating competitive advantage
• Need for digital identity and inclusive data for building customer trust.

In these exceptional times of rapid technology revolution and entry of new players, the financial industry is challenging the order of the past. Institutions are at an inflexion point where they need to change the mindset and embrace the technology transformation immediately to maintain their leadership and customer trust.

Mounting need to move towards open banking and shared ecosystem

At the core of the discussion was the urgent need for financial institutions to move towards a shared ecosystem and lifestyle services that benefit customers from network effects of aggregation. It is no longer an option but rather a ‘must’ as fintech platforms rapidly acquire customers at a much faster pace than banks ever did. The openness could emanate not just technology collaboration but also from collaborative business models.

Open banking models could vary. The collaboration could be through application programming interfaces (API) that integrate partners in an ecosystem of services, and also function as a tool for customer acquisition. The alternate business model could be where institutions create a marketplace with multiple service
providers. The ‘Banking as a service’ model has evolved from the realisation that as institutions create modern digital banking infrastructure that often runs on cloud, then they could offer it as a service to create entirely new banks.

“There is no single business model that works; it could be a combination of models. We have over 300 API that connects to various systems and companies. They allow us to offe...

Categories:

Keywords: