Banks and Fintech on Platform Economies: Contextual and Conscious Banking (The Wiley Finance Series) by Paolo Sironi

PART
One
Foundations of Platform
Theory

SUMMARY OF PART ONE
Part One presents the aspects of platform theory that are essential elements for banks
and fintech competing on platform economies.
First, the Fourth Industrial Revolution is based on the digital transformation of
entire industries from output economies to outcome economies. This corresponds
to a shift from product-centric revenue mechanisms to the monetisation on client
journeys, as they attempt to fulfill personal, business, or financial needs.
Second, successful non-banking platforms addressed the trust advantage as a
key motivational aspect that invites users to engage in value-generating interactions
across entire ecosystems. Financial services are already asked to address the trust
issue in the aftermath of the Global Financial Crisis. Trust is core to their business,
even more than any other industry.
Third, platform openness is a competitive advantage because it accelerates inno-

vation and promotes network effects. Open banking and open finance regulation and
competition are asking banks and fintech to find new ways to monetise on open
ecosystems.
Fourth, transparency is the core principle of successful platform governance to
remain open − whenever and wherever it is needed − and trusted. Financial Mar-

ket Transparency emerges as the new positive theory that helps banks and fintech to
transform their business models generating value that clients are willing to pay for
accessing it.
The characteristics of output economies, the trust advantage, the dynamic level
of openness, and the transparency principles are the foundations of platform theory
that are needed to better understand how to reinvent financial services in the Part Two
of this book.

Banks and Fintech on Platform Economies: Contextual and Conscious Banking (The Wiley Finance Series) by Paolo Sironi