Platform Banking in the US
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.