Banks are on a digital transformation journey that will require them to get out of “project” mode, largely driven by IT, and transition to business-driven products that deliver customer needs through a planned and published roadmap—and then proceed on their journey to a platform orientation. In general, projects have an end date, while products have a lifecycle that continues to deliver capabilities well beyond the initial delivery. Projects typically perform only maintenance changes and don’t evolve the product’s capabilities. The product ethic is “standard issue” in software technology companies, many of which are already either operating as platforms (e.g., Google, AirBnB, Uber, etc.) or on the path to becoming one. The platform is a way to modularize products and combine them in different ways to meet customer requirements and business goals. Banks need to undertake this journey if they want to scale and benefit from powering an ecosystem that will help them generate incremental revenue with a very low capital outlay. Bottom line: To win, both banks and tech companies need a platform that powers both their products and their ecosystem.
Original source: Standing At The Crossroads: Observations on Banking and Technology