A wide range of functions covered by so-called “Digital Banking Platforms” attracts more and more attention. We’ve decided to cover the basic ideas that make digital platforms that popular, track the ways to the success of the leaders at the market.
In this article, we are going to cover the definition of “digital platform”, and its application in relations to the banking industry. We will also try to predict how the banks would look like in 2025, and what role in it will digital platforms play.
What is the Digital Platform exactly?
If you are going to ask the person who operates in banking or financial business what they think of when they hear “digital platform”, they’d tell you that think of their online banking platform, or mobile application that allows.
We’d like to take a strict course on what we are about to talk by giving a strict definition.
“The plug-and-play business model that allows multiple providers and consumers to connect, interact, and create and exchange value,” – Platform Strategy helps us with the fitting wording.
Therefore, plenty of big names on the Internet fall into this category. Facebook, Google, Amazon, even Uber – you name it.
Martin Kenney and John Zysman tell the following in their material “The Rise of the Platform Economy” for “Issues in Science and Technology”.
“Google and Facebook are digital platforms that offer search and social media, but they also provide an infrastructure on which other platforms are built.
Amazon is a marketplace, as are Etsy and eBay. Amazon Web Services provides infrastructure and tools with which others can build yet more platforms.”
Banking and Their Digitalization
Amazon seems to be everywhere. South Park creators even dedicated the last two episodes of their 22nd season to joke around Jeff Bezos and his company’s presence in every sphere of modern people’s life.