Fintech firms and digital banks have revolutionized traditional banking and payment methods and have become significant disruptors of banking services. But the situation is entirely different from what is going on; what are the primary features, and what can we expect from open banking platforms in the future?
Banks increasingly have to compete with large technology corporations and a slew of fintech that are developing cutting-edge, customer-centric, and offering banking platform solutions. It is primarily aimed to promote the banking features such as trading in virtual agencies.
Banks will need to embrace new models to survive and grow in this era.
What are banking platforms created for?
Digital banking platforms are internet-only financial services instead of online banking, which refers to specific online banking components with physical locations (known as traditional banking). To build fully digital financial services, digital banking systems rely on process automation, web-based services, and APIs.
These APIs should be considered radical enablers of new and exciting consumer experiences, not just technical interfaces that expose data to third parties. Global banking platforms, unlike traditional methodologies, do not simply build and promote goods. Instead, it’s a collaborative effort. It gives users the ability to generate and consume value.
Many digital banking platforms providers promote cross-institutional services by integrating their services with those of other financial institutions to give consumers comprehensive digital banking services, such as adding a third-party debit card to a digital bank’s product range.
Why does your company need a banking platform?
Banks and financial services providers may focus on their core competencies—delivering products, services, and experiences—while using software providers’ expertise, functionality, infrastructure, platform, and scale. Adopting a common platform across most goods and services minimizes development time, cost, and a unified picture of the client.
Digital banking platforms focus on modular infrastructure
The way individuals and corporations manage their finances is evolving. Therefore, digital banking platforms are built to be highly adaptable to meet changing consumer needs and future-proof banking services.
Compared to conventional banking systems, digital banking platforms software may customize their offerings and introduce new functions faster and more readily by employing modular services. It is made possible by developing financial solutions that are self-contained and adaptable to changing circumstances. As a result, it reduces back-office resources and development costs while allowing digital banking platform providers to keep up with recent user trends.
Adding digital assets to digital banking platforms
Digital asset solutions are increasingly being integrated into the offerings of several digital banking companies. Combining digital asset services with existing fiat services, including payments, wallets, and transfers, provides end-users with even more flexibility and alternatives when spending and managing their money.
Indeed, certain investors, fintech, and venture capital funds are beginning to commit long-term to cryptocurrencies, seeing them as the currency of the future.
Digital banking platforms, with their digital services and modular approach, can swiftly adapt and incorporate new and future services (such as digital assets) to their architecture—especially when compared to traditional banks’ adaptability and pace of adoption.
Platform banking is projected to make the shift to a new business model more difficult, but the payback might be enormous. While establishing platform capabilities will raise many questions, banks should not wait long to investigate this concept.
BOS can assist you in being a first-mover who can offer you substantial advantages in banking platform solutions. And, the world of platform banking may come sooner than many people think.