Weekly FinTech Tip: The Future of Your Bank or Credit Union Will Rely on Solving Dependencies With A Platform
Hey everyone, and welcome to this week’s edition of FinTech tips. This week, we’re going to talk about why your organization will need to become a platform.
So, what is a platform? A platform is a business that enables value-creating interactions between consumers and producers. Why will becoming a platform matter to your organization? The future of your bank or credit you depends on reducing margins, finding new and informative businesses, and creating value out of the data you have and the data you’ll have in the future. With that in mind, becoming a platform would solve each and every one of these dependencies.
What’s it going to take for your organization to become a platform? To start with, you’re going to need to be all real time, and that means no batch. It means that if I make a transfer to your credit card, I get credit for it right then and there. Secondly, you’re going to need an API, an Application Programmers Interface. It’s a way for programmers from other companies to connect to you as a platform and create value, maybe between real estate brokers or other lenders, but you’re going to need this way of doing this. Finally – and this is the most important thing – you’re going to need an incredibly fast and effective way to onboard new customers or members. This includes all of the regulatory requirements, including KYC, AML, OLFAC. These three ingredients will drive you towards being a platform.
A lot of people have asked me, “John, where can I learn more about becoming a platform?” I highly recommend that you read Platform Revolution: How Networked Markets are Transforming the Economy and How to Make Them Work for You by Jeffrey G. Parker, Marshall W. Van Alstyne, and Sangeet Paul Choudary, available on Amazon, along with my book, Breaking Digital Gridlock, in which I also talk about platforms.
I hope you have a great week, and subscribe to my channel using the link below to get notifications whenever we post a new video!
Premiered on Mar 5, 2019