Digitization transforms the banking ecosystem
Incumbents tap API-based open banking and other tools to catch up with digital advances.
A focus on digital transformation, alternative operating models and and emerging technologies is reshaping the financial services ecosystem.
Specifically, open banking and other market disruptions are transforming the way banks interact with customers and the overall ecosystem. Open banking enables the use of APIs that enable third-party developers to build applications and services for financial institutions.
Up until 2019, most banks had made selective investments in digital banking, but few had defined digital banking as a core offering. The onset of COVID-19 has been a wake-up call for most banks, reinforcing the notion that money is information and that it must be managed digitally end-to-end. However, many banks recognized they were not fully prepared do make the digital leap that required.
Meanwhile, disruptions in the banking ecosystem were decidedly – and rapidly – changing the rules. Those disruptions include the emergence of app-based “challenger banks” like N26 and Monzo, and Big Tech companies like Facebook, Amazon, Apple, Netflix and Google moving into banking. There was also increasing appetite worldwide for digital banking licenses. Alongside, fintech companies were rapidly proliferating, creating cutting-edge products and forging partnerships with banks.
We at Iris have worked with several leading international financial service sector firms, helping build customized solutions in those complex environments. We have also been associated with a wide gamut of companies, from leading technology companies that provide packaged software solutions to financial services firms. Focus and specialization are the key to our success in the financial services industry.