How can banks position themselves to be at the center of customer engagement and avoid being squeezed out by nimble incumbents, digital giants, and fintechs? By moving from a closed, vertically integrated banking model to an open, platform model.

The move involves deconstructing the value chain, for example, exploring how a bank can distribute through third party platforms and buy instead of build product/services. Moves will be incremental. Few banks will make a step change. The first increment for large banks is providing the table stakes, which equate to open and private APIs to improve data exchange with third-party applications. The next step and pace will vary dramatically depending upon the bank’s platform banking vision and resources.