Mahi Sall, Advisor, Fintech-Bank Partnerships, Payments and Financial Inclusivity
January 25th, 2023
Mahi Sall is the CEO & Founder of FinXpair, a Berlin-based strategic advisory boutique firm focu[...]
APIs and the Evolution of Digital Platforms: Towards a Three-Sided Market
Citi | Jun 16, 2023
Image: Citi
Embracing the three-sided market model, where financial institutions integrate with digital platforms alongside buyers and sellers, can unlock new network effects, accelerate economic growth, and enhance customer engagement in the digital economy.
- The report introduces the concept of a "three-sided market" where financial institutions are integrated into digital platforms alongside buyers and sellers. This model enhances the platform's value proposition by providing financial services such as payments, foreign exchange, and credit within the platform itself.
- Integration of Financial Services into Platforms:
- The report discusses various ways platforms have integrated financial services, including partnering with established financial institutions, creating regulated subsidiaries, or leaving the provision of financial services to external third parties.
- The report identifies Open Banking, Embedded Finance, and Decentralized Finance (DeFi) as potential catalysts for the emergence of three-sided marketplaces.
- Opportunities for Fintechs:
- They could also collaborate with platforms to create unique value propositions, such as exclusive discounts or rewards, to drive customer engagement and loyalty.
- They could also develop solutions that help platforms integrate financial services more efficiently and could play a key role in facilitating the transition.
See: FIS Dives Deeper into Embedded Finance with Bond Acquisition
- Opportunities for Banks:
- Banks could see this as an opportunity to maintain customer engagement and expand their services in the digital economy. By becoming integral components of these platforms, banks could tap into new customer bases and participate more actively in the digital economy.
- Banks could explore partnerships with platforms or consider developing their own platforms. They could also consider how to leverage their existing customer relationships and trust to provide services within these platforms.
- Implication for Regulators:
- Regulators need to consider the implications of this new business model, particularly in terms of ensuring fair competition, data privacy, and security. They may need to update regulations to accommodate these new business dynamics and ensure consumer protection.
View more --> here
Download the 20 page PDF report --> here
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
 |  |  |
Support NCFA by Following us on Twitter!Follow @NCFACanada  |
Related Posts
Can You Use Bitcoin to Pay for Travel?- The Hard Part of Building a Fintech Startup: A Conversation with Cato Pastoll, CEO and Co-Founder of Loop
- Is Web 3 the best of Web1 + Web2?
- Crowdfunding platforms now required to report transactions to FINTRAC, after truck convoy protests
- UK Fintech Wise’s Shares Drop Amidst CFO Exit and Recent CEO Sabbatical
- Crowdfunding raises a roof: Tips for newbie Crowdfunders
Leave a Reply