DATA SECURITY BANKING TECHNOLOGY
Reimagining banking with new digital business model archetypes There’s no aspect of banking that is untouched by the new business models possible today. In this article, Sanat Rao CEO at Infosys Finacle, speaks about the 8 new business model archetypes such as BaaS, Marketplace Banking, & Banking Utilities that are becoming mainstream in the banking industry
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Sanat Rao Chief Executive Officer, Infosys Finacle
he conversation about digital business model innovation is not new, but it has never been more pressing. As CEOs grapple with their biggest challenge, namely, how to stay relevant amid rapid change and uncertainty, the legacy pipeline-based business model was often at the heart of the problem, and ecosystem-led business model, invariably, at the heart of the solution. Digital technologies are unlocking opportunities to create, deliver, and
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realize value in new ways. By and large, the traditional universal bank is built on a pipeline model where the bank does everything, from manufacturing to selling to distributing, on its own, using in-house resources. This vertically-integrated pipeline business model is breaking apart, giving way to fragmenting value chains and new business model opportunities. Our latest research study on digital banking business model innovation, conducted in association with 11:FS, organized the new models into 8
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distinct archetypes, which are briefly described below: Digital-only banks: Digital-only banks deliver banking services entirely (or almost) through digital touchpoints. Their key competitive advantages are high-quality self-service experiences and much lower operating costs than traditional banks. While digital banks mostly target digital-native/ tech-savvy consumers and small businesses, some start with narrower segments and gradually expand their reach to
