Page 41 - Banking Finance September 2023

ARTICLE

held data as well as the banking goods and services acquire new customers faster and more affordably then with
.Providing secure access to their systems to partner can traditional product development and-go-to the market
help banks bridge ecosystems gaps and stay relevant models. By 2030 digital ecosystems could account for a
to their customers. significant share of the banking revenue pool.
Increasing the value of internal resources : Eco
Eco Systems are the inexorable next step in digital disruption
systems are a cost - effective way for banks to promote
for the financial services sector. The hyper connectivity that
their in house developed capabilities to other banks,
digital tools and channels enable has blurred traditional
Fintech and even non -bank enterprises.
boundaries between the brick and mortar and web
Digital eco system help incumbent banks retain their environments and between the four walls of an enterprise
customer base : For a long time now, financial and the wider value chain.
institutions have persisted in building their entire IT
architecture themselves. By nature financial institutions Ecosystems are the next step in digital disruption for the
are control freaks, the very basis of banking is about financial services sector. The focus of the bank is shifting
from internal platforms to external ecosystems. Many of the
managing risks, security and regulatory compliance. By
Banks are accelerating efforts to partner with different
building the applications on their own Banks feel more
industries and built their own eco systems, which is definitely
secure and more in control.
going to be the new growth curve for the Banks.
Delivering a successful ecosystem strategy, is not just about
good ideas, but good ideas delivered well.

Conclusion
Margin pressure, competition from the new entrants and
the changing customer preferences are forcing traditional
banks to transform their business. In doing so banks need
to embrace digital platforms to service customers better,
make full use of data analytics for better - real time
customer insights, modernize operating models and free
themselves from the old core IT systems. Adopting an
ecosystem approach will give banks an additional way to
increase the value they both offer and gain from the
customers. Real Banking transformation can then be per
sued in an ongoing basis, driven by clear organisational goals.

Digital ecosystems including embedded finance are the
future of banking. Increasingly they are moving from being
an opportunistic approach to becoming a revenue
generating strategic competitive imperative for banks.
Financial Institutions must get serious Indian banks can find ways to embed their financial products
in unique life moments along with the customer journey -
about the Digital eco system
health, housing, education, employment which will put them
The next few years could be a make - or -break period for at the heat of the global transformation.
some bank .They will join the digital financial eco system
movement or be consumed by it. In this new future for Banking, Indian Banks must seize the
opportunity to create a strategic advantage and unlock a
These platform-based ecosystems offer products and services larger addressable wallet by orchestrating cross-sector eco
that are created and distributed in partnership with other systems .Banks that don't do this because of lack of
and they confer powerful advantages, allowing investment or the right talent will be made obsolete by other
organisations to enter new market, create new services and sectors and players.

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