Traditional business models are challenged, and value chains are disrupted. Leading banks must reconsider business models and value chains to align their strategy and seize the opportunities presented by the digital economy, leveraging insights from their vast quantities of customer data. Partners can help in exploiting the data and creating new products and services.
Enable open banking and platform-based business models
Technological advances and legislative changes introduce new competitors and additional regulatory pressure to banks, shifting bargaining power to customers. Open banking and APIs will continue to create both opportunities and challenges for banks because it will allow for new ways of interacting with customers, partners, and competitors. Incumbent banks will face changes within their competitive landscape similar to what deregulation did with telecom companies and what Uber did to car transportation and food delivery with its app-based business model. Banks will no longer only be competing against banks, but everyone offering financial services – OEMs, retailers, fintechs, third-party providers (TPPs), social networks, and so on.
In a connected world where every company is becoming a technology company, smarter products and services will refocus commerce on business outcomes and blur industry lines. Contact us to learn how we can help you become a fully digital company and make your processes run better.