Page 39 - Banking Finance September 2023

ARTICLE

DIGITAL ECO

SYSTEM : THE

NEED OF THE

HOUR

What is a Digital Eco System individual life's such as housing, retail mobility, retail and well
being and financial health.
Digital Banking Ecosystems are collaborations built on
partnerships that use technology to provide new products
In an eco-system offering, a multitude of actor provide their
and services to clients. The main idea which is behind the
products and services and are integrated on a single digital
collaborative models like these is very simple. Although no
platform destined for the customer. Adopting an ecosystem
single bank can cover all its customers needs, but a
play allows banks to address a bigger share of total wallet
consortium of Banks and digital companies can.
by expanding the points of access to their financial products.
They can also strengthen their strategic positioning by
Basically, there are three types of stakeholders in a digital
providing non -financial services that customers would be
ecosystem. Banks, Third party service providers and
willing to buy.
customers. The basic role of a third party is to act as an
intermediary between the customer and the bank. An eco-
system approach involves bundling services beyond banking
to offer customers a friction -free and far reaching service .
These service bundles could focus on different aspects of

About the author

Ujjwal Kant
Chief Manager (Faculty)
Union Bank of India
Staff College, Bengaluru

BANKING FINANCE | SEPTEMBER | 2023 | 39