Changes in customer behaviour, low interest rates and the arrival of new competitors are putting banks at risk. In order to survive, banks should adapt and evolve to ensure they remain relevant for customers. In the current context of digital business this means embracing a platform business model that will enable the bank to be part of a broader ecosystem.
Many readers of this blog are digital leaders at financial services organisations. To support them in their journey towards a platform business model, we encourage them to read a recent report from Forrester entitled “How To Use Platform Business Models In Financial Services”, which can be downloaded for free at our site for a limited time.
According to Forrester, “the top seven firms by market cap growth in 2018 use platform business models”(1) – a strong indication that banks need to consider the opportunities offered by platforms. In this report, readers will discover how to recognise patterns in platform business models, appreciate how transformative collaborative approaches will be for financial services, and understand the roles their firm can play in this new environment.
The report also includes some striking statistics about the status of open banking initiatives. It shows, for example, that while almost three-quarters of financial services firms are assessing or implementing open banking, the remaining 26% have not even begun to formally assess the implications.
In a few years, banks and insurance companies will all be part of digital ecosystems. Their ability to participate in these ecosystems and build meaningful partnerships will determine their future success. Now is the time to start establishing the foundations for a platform business model.
 Forrester, “How To Use Platform Business Models In Financial Services”, Jacob Morgan, 7 August