However , one of the most crucial steps in building and sustaining an effective ecosystem is determining its scope – the boundaries and limits within which the ecosystem will operate .

Defining the scope helps clarify which services , partnerships and technologies will be included , ensuring that the ecosystem remains focused and aligned with goals . It also establishes the limits on growth , resource allocation and potential risks , allowing companies to manage the complexity of the ecosystem while ensuring it remains sustainable and beneficial .

When well-defined , the scope acts as a guide that helps businesses avoid overextending resources or diluting their value propositions , making the ecosystem more resilient and purpose-driven .

By participating in well-defined digital ecosystems , banks can access cutting-edge technologies , tap into new customer segments and offer more comprehensive and personalised services . This collaborative approach enables banks to remain competitive in an era of digital disruption , where customer expectations are constantly rising and new entrants are challenging traditional business models . Digital ecosystems can facilitate compliance with regulations like PSD2 , which mandates open banking initiatives . Through APIs and data sharing , banks can foster partnerships that lead to the development of novel financial products and services .

The rise of digital ecosystems is not limited to traditional institutions . According to Hans Tesselaar , Executive Director at Banking Industry Architecture Network ( BIAN ): “ With more than nine out of 10 consumers now using some form of digital payment tools , banks and other financial institutions are increasingly relying on data obtained through an opensource digital ecosystem .”

86 October 2024