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Who Holds the Reins? – Banks in the Crossfire of Global Platforms

Author

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  • Mattila, Juri
  • Seppälä, Timo
  • Lähteenmäki, Ilkka

Abstract

Banking and financial services have traditionally been a heavily regulated industry where technology alone has not been a sufficient factor to transform the operating architectures of the industry. The pervasive view in the financial industry has been that digitalization and its integrational development will take place on the platforms of the banks. Due to the inherent secondary nature of financial services, however, it is more likely that the customer interface of financial services will increasingly migrate towards primary service platforms. As a result, the commoditization of payment processing services is expected to increase. Additionally, the visibility into customer data will become more opaque and the value capturing capabilities of the financial industry will be radically redefined. Furthermore, a strategic impact can also be anticipated on several public institutions, such as financial supervisory authorities, the tax administration and other public registry holders.

Suggested Citation

  • Mattila, Juri & Seppälä, Timo & Lähteenmäki, Ilkka, 2018. "Who Holds the Reins? – Banks in the Crossfire of Global Platforms," ETLA Reports 86, The Research Institute of the Finnish Economy.
    • Handle: RePEc:rif:report:86
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    References listed on IDEAS

    as
    1. Timothy H. Hannan & John M. McDowell, 1984. "The Determinants of Technology Adoption: The Case of the Banking Firm," RAND Journal of Economics, The RAND Corporation, vol. 15(3), pages 328-335, Autumn.
    2. Lauslahti, Kristian & Mattila, Juri & Seppälä, Timo, 2016. "Smart Contracts – How will Blockchain Technology Affect Contractual Practices?," ETLA Reports 57, The Research Institute of the Finnish Economy.
    3. Mattila, Juri, 2016. "The Blockchain Phenomenon – The Disruptive Potential of Distributed Consensus Architectures," ETLA Working Papers 38, The Research Institute of the Finnish Economy.
    4. Mattila, Juri & Seppälä, Timo, 2015. "Blockchains as a Path to a Network of Systems - An Emerging New Trend of the Digital Platforms in Industry and Society," ETLA Reports 45, The Research Institute of the Finnish Economy.
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    Cited by:

    1. Huttunen, Henri & Seppälä, Timo & Lähteenmäki, Ilkka & Mattila, Juri, 2019. "What Are the Benefits of Data Sharing? Uniting Supply Chain and Platform Economy Perspectives," ETLA Reports 93, The Research Institute of the Finnish Economy.

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    More about this item

    Keywords

    Platform: embedded banking; Distributed banking; Open banking; Platform; Distributed ledgers; Blockchain; FinTech;
    All these keywords.

    JEL classification:

    • G2 - Financial Economics - - Financial Institutions and Services
    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure

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