When I was posted to Shanghai during the last financial crisis in 2008, most of the top financial institutions were traditional banks. A number of them were from China. Those were the unsteady days when the banks did not enjoy much reputation in customer service, financial inclusion, or user experience. A bunch of Fintechs rose to fill the gap left by the banks.
The financial services industry of 2020 is a far cry from how we knew finance back in 2010.
Platform business models are on the rise in finance today. According to a McKinsey & Company research report, more than 30% of the global economic activity – some $60 trillion — could be mediated by digital platforms in six years.
Visa, Mastercard, PayPal, Ant Group, and Tencent have all overthrown massive banks from 2010 in market capitalization and now climbed to be included in the top 10 for 2020.
Above their enormous increase in valuation since 2010, they have one more important common denominator: they all have platform business models.
How is your business adopting platform business models or unleashing network effects? Where will your business be in 10 years?
I will be glad to share transferable learnings from my last four years spent working closely in the startup ecosystems in the space of platform creation. Please ping me to have a debate/discussion.
#businessmodels #banks #platform #networkeffects
