DIGITAL BANKING
What makes a great ecosystem model ? How can legacy banks better leverage provider / fintech relationships to drive digital transformation ?
Jamil Jiva : A great ecosystem model is characterised by its ability to orchestrate several applications , both homegrown and sourced from third-party specialist vendors . To achieve the intended positive results , firms must prioritise building a friendly interface to consume and share data with other providers in their digital ecosystem . This digital infrastructure should be intuitive , flexible , secure and resilient once scaled .
Legacy banks should look to strategic partnerships with specialist fintechs to accelerate digital transformation . Technological solutions from providers offering APIs can easily plug into existing systems , streamlining collaboration and accelerating digital transformation .
The applications must use ‘ open APIs ’ that communicate in multiple ‘ standard languages ’ like JSON , GraphQL , and REST , enabling open and unambiguous communication between applications .
Richard Butler : A great ecosystem model depends on two things . The first is asking the question : “ How can we create value ?” before looking at how one can partner with other parties to deliver this experience . The second is to understand one ’ s organisation ’ s role in the ecosystem .
The key is to start with customers ’ needs . There will always be one party that will be the interface with the customer and will need to disseminate certain information between the other parties in the ecosystem . This orchestrator role ensures cohesive delivery while allowing specialised partners to plug in their capabilities .
It is always a challenge when working out how open a platform should be for third parties to participate , therefore starting with a few trusted parties is key to helping build confidence .
Legacy banks can , for example , leverage fintechs ’ APIs or services , integrating best-in-class fintech solutions for capabilities like personal finance management or investment advice , into their own digital offerings . Partnering with fintech that are already pursuing some of these digital ecosystems can also help legacy banks . This would also help legacy banks provide a robust portfolio of services and share in the value created .
fintechmagazine . com 77