Banks are no strangers to the pressures of digitalization. But with Covid-19, retail banks now face the added challenge of adapting their services to a digital environment as quickly as possible, as customers continue to demand transaction support, account information, and reassurance.
To continue to provide customers with the services they want, banks need better handling of data to understand user behavior, as well as an easy-to-navigate interface for their customers.
According to Capgemini’s 2020 World Retail Banking Report, banks should consider adopting a platform-based business model in order to be more equipped to tackle these challenges.
A platform-based business enables third-party services to be added to core products and facilitates the exchange of information, goods, and services. For banks this would mean teaming up with fintech firms and subsequently becoming a platform for their financial services.
How the platform-based business model helps companies reach business priorities
This content is available exclusively to Tearsheet Outlier members.
Missing out? Subscribe today and you’ll receive unlimited access to all Tearsheet content, original research, exclusive webinars and events, member-only newsletters from Tearsheet editors and reporters and much more. Join Outlier now — $59/mo Already an Outlier member? Sign in to your account
“We are at the beginning stages of unbundling banking infrastructure. The next big wave in fintech disruption is sure to be felt by the legacy vendors that have grown complacent by the lack of competition. And this will hopefully lead to a shift in banks viewing technology purchases as investments and not solely as expenses.”
“The report emphasizes the importance of building an API network that drives collaboration with ecosystem partners in enabling new products/services and building customer loyalty. More importantly, however, is to support a network of standardized APIs, which are interoperable, built on consensus, and work for all ecosystem participants.”