Open Economy
Innovation and Insights
2023-2024
Every Company will be a FinTech Company
Open Data: While opening up Banking data, enables a significant amount of customer-centric innovation, the buck doesn’t and shouldn’t stop with banks. In the digital realm, data residing with e-commerce firms, payroll providers, health institutions, utility companies, etc. can bring significant complementarity to the banking data to power next-generation financial services.
Open Business Models: With the emergence of Platform business models, enterprises are increasingly creating, promoting, and participating in business ecosystems. This requires the business models themselves to be based on a ‘Shared-risk and Shared-reward’ mentality and ensure transparency and trust between the platform ecosystem participants.
Open Talent: The future of work is undergoing significant changes in the pandemic-imposed remote work environment. However, this can unlock advantages for enterprises as they can now create virtual teams across the globe and also take advantage of Gig-economy specialists for specific skill requirements.
Open Experience: The holy grail of all these O’s of Open Banking, Open Finance, and Open Economy is to create superior experiences for customers which are hyper-personalized, Contextual, predictive, and pre-emptive. Open experiences in the world of ‘Open Economy’ can truly redefine the way firms and customers engage with each other for mutual gains.
Open Finance: The Innovation Intersection.
One of the most anticipated trends in payment industry is adoption of real-time payments. The demand for seamless, instant and easy of payment has reached a critical point. While the banks worldwide are getting to launch their instant payment services one must understand and overcome a variety of challenges that it will come with it. Real-time payments will soon need Real-Time posting of the payments.
The Os of Open Finance:
Open Products: Open products are the building blocks of financial marketplaces where a bank can augment and supplement its current offerings by including products - both financial and non-financial from partners to provide choice and personalization to customers.
Open Processes: Business processes in banking can be significantly improved by enabling data and capabilities sharing between a bank and digital enterprises. Business processes for a lending decision can be improved by sharing alternate data for creditworthiness assessment whereas post-disbursement monitoring can be improved by monitoring the loan amount utilization and business volumes of the borrower.
Open Innovation: Open innovation is a term used to promote a digital age mindset toward innovation that runs counter to the secrecy and silo mentality of traditional corporate research labs. Banks may create a collaborative innovation culture with startups by offering them support in terms of infrastructure, operational data, beta launch, etc.
Open Assets: In the digital world, the way banks can create and share digital assets will define the future of banking as it will enable banks to embed themselves in emerging themes without taking the undue risks of operationalizing the entire innovation lifecycle. Banking as a Service, Payments as a Service, Compliance as a service, etc. are some of the routes that are enabling banks to unlock their assets for collaborative value creation.
Creating Endless Possibilities
Innovation & Insight
