1. Market Research
  2. > Financial Services
  3. > Banking Market Trends
Banking as a Marketplace: Opportunities and Threats

Banking as a Marketplace: Opportunities and Threats

  • March 2017
  • 34 pages
  • ID: 4815042
  • Format: PDF
  • GlobalData

Summary

Table of Contents

Search Inside

Banking as a Marketplace: Opportunities and Threats

Summary
EU-wide and UK-specific regulations will force banks to open up access to their customer data by January 2018. This will have profound implications for both incumbent providers and the new entrants seeking to challenge their dominance. Open banking will lead to the creation of new business models, including banking as a marketplace. Here, a bank integrates third-party services into its own platform, effectively turning itself into a portal, or marketplace, where consumers can access products from across the market in one place.

Key findings

- Marketplace banking will lead to higher revenues. Not only will banks gain from charging access fees to partners, they will also be able to share the revenues from the sale of partner products. They can also access data generated by their partners to identify new opportunities for targeted cross-selling.
- Established banks can use a marketplace strategy to harness the expertise of fin-tech specialists and improve the weakest offerings in their product ranges in a cost-effective manner.
- Marketplace practitioners need to guard against the risks associated with sharing customer data with third parties. They also need to minimize loss of control over product development by collaborating with partners to co-create products, rather than passively integrating off-the-peg products.

Critical success factors

- Identify which products should be outsourced to third parties – This will be determined by whether the product is a core or a peripheral offering, how weak the product is compared to equivalent offerings from competitors, and how much scope there is for partners to add value to, or improve upon, the bank’s existing proposition.
- Set benchmarks for partner selection – This can be a mix of objective criteria, such as cost of integration, the financial stability of the third party, and their customer satisfaction scores, and subjective factors like brand image and reputation.
- Clearly define the terms and conditions for working with partners – Decide whether third parties should be compelled to enter into exclusive partnerships with the bank, or if they will be allowed to deal with competing providers. Establish service level agreements that cover performance, quality, reliability, cost, and other relevant metrics, and set out the precise circumstances under which either party is able to terminate the partnership.

The report “Banking as a Marketplace: Opportunities and Threats” explores the opportunities and advantages offered by the marketplace banking model for both new entrants and incumbents.

This report offers insight into -
- The status of regulatory developments that are driving open banking initiatives in the UK and Europe.
- The advantages of marketplace banking with respect to revenue generation, product provision, and alliances with fin-tech providers.
- The key risk factors banks need to consider when adopting a marketplace strategy.

Companies mentioned in this report: N26 and Starling Bank

Scope
- Marketplace banking will lead to higher revenues. Not only will banks gain from charging access fees to partners, they will also be able to share the revenues from the sale of partner products. They can also access data generated by their partners to identify new opportunities for targeted cross-selling.
- Established banks can use a marketplace strategy to harness the expertize of fintech specialists and improve the weakest offerings in their product ranges in a cost-effective manner.
- Marketplace practitioners need to guard against the risks associated with sharing customer data with third parties. They also need to minimize loss of control over product development by collaborating with partners to co-create products, rather than passively integrating off-the-peg products.

Reasons to buy
- Learn about the competitive and strategic advantages marketplace banking can offer providers
- Understand what potential risks and drawbacks are associated with this model
- Discover how banks in the UK and Europe are already implementing marketplace strategies and what they are aiming to achieve.

Get Industry Insights. Simply.

  • Latest reports & slideshows with insights from top research analysts
  • 150+ Million searchable statistics with tables, figures & datasets
  • More than 25,000 trusted sources
  • Single User License — provides access to the report by one individual.
  • Department License — allows you to share the report with up to 5 users
  • Site License — allows the report to be shared amongst all employees in a defined country
  • Corporate License — allows for complete access, globally.

ReportLinker may already be registered as a supplier with your company. If you want to Order by PO, check with us first and we'll let you know if we are a registered supplier and what the vendor number is. Otherwise, we'll provide you with the necessary information to register ReportLinker as a vendor.

Ahmad helps you find the right report:
Testimonials

The research specialist advised us on the best content for our needs and provided a great report and follow-up, thanks very much we shall look at ReportLinker in the future.

Kate Merrick

Global Marketing Manager at
Eurotherm by Schneider Electric

We were impressed with the support that ReportLinker’s research specialists’ team provided. The report we purchased was useful and provided exactly what we want.

Category Manager at
Ikea

ReportLinker gave access to reliable and useful data while avoiding dispersing resources and spending too much time on unnecessary research.

Executive Director at
PwC Advisory

The customer service was fast, responsive, and 100% professional in all my dealings (...) If we have more research needs, I'll certainly prioritize working with ReportLinker!

Scott Griffith

Vice President Marketing at
Maurice Sporting Goods

The research specialist provided prompt, helpful instructions for accessing ReportLinker's product. He also followed up to make sure everything went smoothly and to ensure an easy transition to the next stage of my research

Jessica P Huffman

Research Associate at
American Transportation Research Institute

Excellent customer service. Very responsive and fast.

Director, Corporate Strategy at
Ingredion

I reached out to ReportLinker for a detailed market study on the Air Treatment industry. The quality of the report, the research specialist’s willingness to solve my queries exceeded my expectations. I would definitely recommend ReportLinker for in-depth industry information.

Mariana Mendoza

Global Platform Senior Manager at
Whirlpool Corporation

Thanks! I like what you've provided and will certainly come back if I need to do further research works.

Bee Hin Png

CEO at
LDR Pte Ltd

The research specialist advised us on the best content for our needs and provided a great report and follow-up, thanks very much we shall look at ReportLinker in the future.

Kate Merrick

Global Marketing Manager at
Eurotherm by Schneider Electric

FAQ
  • How we can help
    • I am not sure if the report I am interested in will fulfill my needs. Can you help me?
    • Yes, of course. You can call us at +33(0) 4 37 65 17 03 or drop us an email at [email protected] to let us know more about your requirements.
    • We buy reports often - can ReportLinker get me any benefits?
    • Yes. Set up a call with a Senior Research Advisor to learn more - [email protected] or +33(0) 4 37 65 17 03.
    • I have had negative experiences with market research reports before. How can you avoid this from happening again?
    • We advise all clients to read the TOC and Summary and list your questions so that we can get more insight for you before you make any purchase decision. A research advisor will accompany you so that you can compare samples and reports from different sources, and choose the study that is right for you.

  • Report Delivery
    • How and when I will receive my Report?
    • Most reports are delivered right away in a pdf format, while others are accessed via a secure link and access codes. Do note that sometimes reports are sent within a 12 hour period, depending on the time zones. However, you can contact us to escalate this. Should you need a hard copy, you can check if this option is offered for the particular report, and pay the related fees.
  • Payment conditions
    • What payment methods do you accept?
      1. Credit card : VISA, American Express, Mastercard, or
      2. You can download an invoice to pay by wire transfer, check, or via a Purchase Order from your company, or
      3. You can pay via a Check made out in US Dollars, Euros, or British Pounds for the full amount made payable to ReportLinker
    • What are ReportLinker’s Payment Terms?
    • All payments must normally be submitted within 30 days. However, you can let us know if you need extended time.
    • Are Taxes and duties included?
    • All companies based in France must pay a 20% tax per report. The same applies to all individuals based in the EU. All EU companies must supply their VAT number when purchasing to avoid this charge.
    • I’m not satisfied. Can I be refunded?
    • No. Once your order has been processed and the publisher has received a notification to send you the report, we cannot issue any refund or cancel any order. As these are not ‘traditional’ products that can be returned, reports that are dispatched are considered to be ‘consumed’.
  • User license
    • The license that you should acquire depends on the number of persons that need to access the report. This can range from Single User (only one person will have the right to read or access the report), or Department License (up to 5 persons), to Site License (a group of persons based in the same company location), or Corporate License (the entire company personnel based worldwide). However, as publishers have different terms and conditions, we can look into this for you.
Purchase Reports From Reputable Market Research Publishers

Digital Lending Market by Offering, Deployment Mode, End User And Region - Global Forecast to 2026

  • $ 4950
  • October 2021
  • 231 pages

The global Digital Lending Market size to grow from USD 10.7 billion in 2021 to USD 20.5 billion by 2026, at a Compound Annual Growth Rate (CAGR) of 13.8% during the forecast period. The growing demand ...

  • World
  • North America
  • Banking
  • Retail Banking
  • Industry analysis
  • Gross Domestic Product
  • Internet Penetration

ref:plp2017

Reportlinker.com © Copyright 2021. All rights reserved.

ReportLinker simplifies how Analysts and Decision Makers get industry data for their business.

Make sure you don’t miss any news and follow us on