Page 8 - WFTR 2019 eBook

World FinTech Report Interactive eBook

Determining Open X Open banking business roles

Ecosystem Roles External The entity provides products and services The entity acts as a trusted third party
ORCHESTRATOR ROLE
SUPPLIER ROLE
to connect producers and distributors
to third parties for distribution

As the industry evolves towards Open X, new roles will be added to the traditional, integrated
role – that of a supplier, orchestrator, and aggregator. DISTRIBUTION
The supplier role will most likely be taken up by firms that have strong production capabilities AGGREGATOR ROLE
but not the distribution network needed to sell the products. Therefore, suppliers will focus on The entity sources products and services from
INTEGRATED
product and service development while handing off distribution to another ecosystem player. Internal (Traditional role) third parties to distribute via its channels
Aggregators will use internal channels for distribution but leave product and service creation
to third parties. Firms that become aggregators will have vast customer reach, thereby
enabling suppliers to quickly get products to market. Internal PRODUCTION External

Orchestrators will be at the center of the ecosystem to connect suppliers and aggregators and
Source: Capgemini Financial Services Analysis, 2019.
manage their interactions. Firms that take on the orchestrator role will require capabilities in
managing access, interactions and data.

Firms having an integrator role will continue maintaining full control of product and service Prioritize integrated model enhancement
creation as well as distribution. But in Open X, an integrated firm may not be able to keep pace
with speedier, agile competitors. Therefore, firms can shore up specific capabilities and rely on Why is it challenging challenging for traditional
their individual strengths. By doing so, they can mix and match roles as needed for different banks to become a pure-play orchestrator? What should traditional banks do?
business models.
By focusing and enhancing the existing integrated model, FS firms can leverage data and Conflicts of interest Collaborate with
emerging technologies and cultivate an open ecosystem that will underpin the shared or Cannibalization ecosystem players
marketplace known as Open X.
Regulatory risks Build a robust
digital strategy
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Not bank’s core Leverage
As the industry heads toward competency customer data
Open X, we see three new roles Legacy
emerging: Supplier, Aggregator, infrastructure Utilize emerging
technologies
and Orchestrator.

Banks should look to be the best supplier or aggregator,
Banks should look to orchestrate an ecosystem of orchestrate complementary services, or be the
complementary or supplementary offerings.
preferred choice of the future orchestrators.
Source: Capgemini Financial Services Analysis, 2019

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