The concept of banking as a platform is becoming a reality and its implications are far-reaching. This model, which offers financial services through APIs, is set to revolutionise the banking sector. It allows third-party developers to create new services and products, fostering innovation and competition. Furthermore, it paves the way for a more customer-centric approach, with personalised services tailored to individual needs.
The platform model also provides increased operational efficiency. It enables banks to streamline their processes and reduce costs, by outsourcing certain functions to third-party providers. This model also allows banks to leverage their vast amounts of data, providing valuable insights that can be used to improve services and drive revenue growth.
However, the transition to a platform model is not without challenges. Banks need to ensure that they have the necessary infrastructure in place, and that they comply with regulatory requirements. They also need to manage the risks associated with data security and privacy. Despite these challenges, the benefits of the platform model make it a compelling proposition for the banking sector.
With the rapid advancement of technology, the platform model is set to become the norm rather than the exception. It heralds a new era of banking, where services are more efficient, personalised, and innovative.
Go to source article: https://medium.com/digital-space-ventures/the-bank-as-a-platform-promise-is-real-and-the-impact-is-bigger-than-you-can-imagine-d5e1e09d3fb6#.s7zh5cusi