Modern-day banks operate in a fiercely competitive market, with revenue streams under pressure due to new customer habits, low interest rates and new market players.
The Bank as a Platform vision calls for the value chain of the financial services industry to be divided into Product, Process and Retailer. Banks should analyse what their greatest strengths are and in which areas – depending on the customer segment they want to target and active touch points. The remaining areas can be covered through partnerships with other providers of financial services, thus delivering a broad range of services that reflects the needs of each particular customer.
This transforms a bank into a platform, in this case for financial services. This is similar to the way other digital leaders have become the preferred platform for things like consumer goods, transport services or property lets.