Learning Objectives:

  • Define platform banking and understand its core concepts.

  • Explain how platform banking differs from traditional banking.

  • Analyse the role of banks as platform orchestrators.

  • Understand the governance and risk management of platform banking.

7.1 What is Platform Banking?

The Uphilos course covers “platform banking and marketplace strategies” and “how banks act as platforms enabling external providers to offer services to bank customers” . The NUS course covers “platform banking” as a core topic, noting that “Fintech, platform & Application programming interface (API) banking evolution” is disrupting the banking industry .

Key Concepts:

  • Orchestrator Role: Banks act as orchestrators connecting customers, partners, and services .

  • Ecosystem Integration: The Uphilos course covers “platform and ecosystem plays” .

  • Value Creation: The Uphilos course covers “how value is created, delivered, and captured in the modern financial ecosystem” .

7.2 Platform Banking vs. Traditional Banking

The Uphilos course covers the “shift to platforms and ecosystems” and how “innovative banking business models harness platforms, APIs, and partnerships to create new value” .

Key Differences:

  • Value Creation: Traditional banks create value through lending and deposits; platform banks create value by connecting participants.

  • Customer Relationships: Traditional banks have direct customer relationships; platform banks facilitate relationships between customers and third parties.

  • Business Model: Traditional banks are product-centric; platform banks are ecosystem-centric.

7.3 Banks as Platform Orchestrators

The Uphilos course covers “how banks become orchestrators connecting customers, partners, and services” . The HKIB syllabus covers “Digital Banking powered by an API led Architecture” .

Orchestrator Functions:

  • Connecting Participants: The Uphilos course covers “connecting customers, partners, and services” .

  • Enabling Innovation: The HKIB syllabus covers “Open Innovation, Open Collaboration, Open Competition” .

  • Managing Ecosystems: The Uphilos course covers “governance, risk, capability building, and change management” .

7.4 Platform Banking Governance

The Uphilos course covers “governance, risk, capability building, and change management” for innovative banking business models .

Key Governance Elements:

  • Risk Management: The Uphilos course covers “risk” as part of platform banking governance .

  • Regulatory Compliance: The Uphilos course covers “regulatory and risk considerations in digital banking ecosystems” .

  • Partner Management: The Uphilos course covers “partner ecosystems” .

  • Data Governance: The GIFT IFI course covers “Data Governance and Audit Trails in Core Systems” .

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