Banking as a Platform
Authored by: Rahul Bansode, Associate Director – Technology, Microsoft
Digital Transformation (DX) is an ongoing trend which has been disrupting nearly all business operations for many businesses, including financial services. The Banking and Finance sector is also more generally undergoing tremendous digital transformation efforts across nearly all verticals. The traditional financial services industry has huge IT budgets and specialists with a wealth of expertise and IT strengths who are engaged in maintaining the bank's position in the market against their peers and key competitors through the introduction of new products and services.
In the current Digital Transformation era though, the financial industry is on the verge of a new paradigm shift. Traditional approaches to business services and working models have become roadblocks to addressing the needs and demands of a growing digital-savvy client and customer base.
Advancements in technology are disrupting the traditional industry model, and thus more start-ups are tapping into the customer base and revenue model of the traditional financial institutes and in turn, becoming real competitive threats to the traditional big players who are slower to change. These new start- ups are utilizing new technologies to better position themselves in a digital-first environment and present a new, updated business model to be agile and eficient, and counter traditional financial services institutions. Technological advancements have been welcomed with open arms across nearly every industry and now it is time for financial services to fully embrace digital transformation and change to survive and thrive in a new, digital ecosystem.
The purpose of this whitepaper is to share and explain Digital Transformation (DX) trends in the Banking and Finance Industry, and how Banking as a Platform (BaaP) is emerging in the midst of the FinTech revolution.