Contributed by EY

The platform-based business model has taken hold in the digital economy, and the concept is starting to emerge in banking. Aided by ubiquitous mobile access and easy distribution through mobile app stores, FinTech companies and some progressive banks have started to make inroads with the customers of traditional banks. This threatens the banks’ vertically integrated and product-focused business model, which is not always suited for building or integrating innovative FinTech services.

In response, EY recommends that banks explore the concept of platform-based banking which will enable banks to reduce their dependence upon legacy technology built to support vertically oriented business models.

Read this report to learn about how the transition to a platform can be an integral step toward further transformation of the underlying cost structure and business model of a financial institution enabling a new wave of diversified, innovation-led revenue streams to support customer acquisition, retention, wallet-share growth and profitable revenue enhancement.