Platformization

How are financial services companies navigating the rise of online platforms?

Platformization is the move from traditional business models to platform business models that bring supply and demand together online. An organization running an online platform makes money from matching supply and demand, rather than earning directly from the sale of products or services. Online platforms are everywhere: Amazon, Airbnb, Uber and Alibaba are a few of the most well-known examples. In the Netherlands, we have Marktplaats, Bol.com and Booking.com. In retail and the travel industry, online platforms have completely upended the balance of power in just a few short years. Although online platforms come in all shapes and sizes, they have one thing in common: they offer a marketplace for trading, for exchanging value.

How are financial services companies faring?

In financial services, online platforms are also on the rise. 

In China and South East Asia platformization is transforming the financial services industry. In the Netherlands, it’s mainly FinTechs that use the platform model, chiefly for crowdfunding and financial comparison platforms. Only one of the established Dutch banks, ING, has openly admitted it wants to become a real platform organization.

Our study

Our experts studied platformization in the financial services industry in the Netherlands. We asked 40 board members and managers from 25 financial institutions to describe their platformization strategy, explain their strategic decisions, and relate their experiences with this process. This report summarizes the results of these interviews.

Platformization of financial services is a matter of time

What Turner can do for you

Our much requested interventions

Ecosystem mapping

To determine in which markets your organization has enough potential to build its own platform, you have to know the various value chains you operate in. There ar four major steps in mapping the ecosystems you operate before you can decide: my platform or yours?

  1. Get to know the entire ecosystem
  2. Map out all customer journeys in this ecosystem
  3. Understand the relative strength of all players in the ecosystem
  4. Figure out how exactly you can add value to the system with a platform

Challenge session

You need effectiveness, agility and speed to make a strategy work. This applies to any modern strategic issue, and certainly for platformization. Use a challenge session with the leadership team and relevant stakeholders to test the platform strategy. Does the strategy hold up to every future scenario? Can you intervene on time to adapt to changes in the ecosystem? Is there enough speed in your execution to iteratively adjust your strategy? A good, critical session helps you to attune the strategy to the fast-changing environment of online platforms.

All insights on platformization from our financial services experts.

Contact

Let's get in touch! Do not hesitate to contact us should you have any questions.

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