A banking ecosystem is an interconnected set of services where customers can fulfill a variety of needs in a single integrated experience. Bringing together ways to make a consumer’s daily life easier is the future of digital banking.
In a digital banking environment, there is no reason why financial services organizations should be limited to offering only traditional core banking services. In fact, the future of banking will most definitely include the integration of products and services from a variety of providers, all focused on helping the consumer simplify their daily life – without leaving a primary financial institution’s portal … all on a mobile device.
The combination of advanced data analytics, open banking APIs and conversational AI can create a differentiated experience that can improve customer satisfaction, increase loyalty and generate revenue for the provider. The challenge is that the provider of this advanced banking ecosystem doesn’t necessarily have to be a traditional bank or credit union.
According to a McKinsey white paper entitled, Financial Ecosystems: The Next Horizon for U.S. Banks, customers in countries like Poland, China and Sweden already receive these types of advanced ecosystem experiences. The U.S., and to a lesser degree, the U.K., lack these types of banking ecosystems because of regulatory environments that are wary of non-traditional providers of financial services.
Non-financial examples of consumer ecosystems already exist in industries such as hospitality, healthcare, travel, etc. For instance, travel ecosystems can help a traveler secure a flight, lodging accommodations, a rental car, tour guides and even restaurant and entertainment options.
According to McKinsey, an ecosystem usually provides three key value components:
- Reduction of friction between related services: “Facebook Messenger enables users to…