Platform business model for banking – A point of view
Success in the digital economy is a function of scale. Ecosystems are the new assets for a business and the value created or exchanged in these ecosystems their return.
Digitization in banking is changing the nature of business as banks embrace the platform model to augment their revenue with new fee-based income in the face of falling interest income. Progressive banks are already exposing their APIs to external developer ecosystems, third parties and other banks.
However, there is no single platform strategy for success. Should your bank create, curate or gain access to an ecosystem? Which of the APIs should be accessed by select partners such as FinTechs, and which ones can be open to third parties that your bank has no relationship with?
To learn how banks can achieve the explosive success of new age platform businesses like Uber, Alibaba and Amazon with platform banking, download our Point-of-View.