08/11/2023
In occasion of the Forward Financial Thinking Forum, LFMA has organized a series of interviews on our platform SPOT & FORWARD.
Mr. Paolo Sironi, global research leader in banking and financial markets at IBM, Institute for Business Value, interviewed by Mr. Vincenzo Dimase, LSEG Sales Strategy and Ex*****on Global Director - FX, talked about reinventing financial services on platform economies.
For Sironi, technological innovation is not enough to achieve a sustainable financial performance. Instead, financial institutions must future-proof existing business models if they wish to reap the benefits of digitalisation in platform economies.
Banks exert market power when they excel in information (core banking) and communication (interfaces), continued Sironi. Investments in technology correspond to a shift in banks’ economic models from core banking margins (payments, lending) towards embedded finance frameworks, and from product fees towards advisory fees (investing, insurance).
In addition, contextual banking strategies allow banks to service clients when and where needs arise, said Sironi. Embedded finance leverages modular core banking, while secure hybrid cloud technology can promote highly dynamic and frictionless ecosystem interactions.
Finally, conscious banking strategies allow banks to demonstrate “value for money,” concluded Sironi. Investing in trusted and transparent advisory processes allows the integration of shrinking product fees with economically sustainable relationship fees.
Please find below the link to the 14th episode of SPOT & FORWARD titled:
Reinventing financial services on platform economies as fundamental uncertainty takes hold
https://www.youtube.com/watch?v=wwGrhrB-Wn4
If you want to learn more about Paolo Sironi’s latest bestseller “Banks and Fintech on Platform Economies”, I am pleased to add a link to Paolo’s book: http://relinks.me/1119756979
For Sironi, technological innovation is not enough to achieve a sustainable financial performance. Instead, financial institutions must future-proof existing...