Unbundling and re-bundling in the open industry of banking

Authored by: Anna Omarini

The Routledge Handbook of FinTech

Print publication date:  June  2021
Online publication date:  June  2021

Print ISBN: 9780367263591
eBook ISBN: 9780429292903
Adobe ISBN:


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Mutated market conditions, the advent of new players and digital technologies, and a significant regulatory push, are profoundly changing the banking industry. The digital transformation is not really a pure technological revolution. Indeed, it is the driving force of the new business revolution, where the increased usage of digital devices is transforming the way customers do their banking, changing market expectations, and in doing so value creation and value delivery in the banking and financial industry are both under a deep transformation. Value is created in platforms through economies of scale and scope in blending innovation at both production and distribution levels. The banking business models may shift significantly from a pipeline, products verticals paradigm, to Open Banking models and business ecosystems. Banks can develop their own one system or join others. All are characterized by higher levels of openness towards third parties. Under the umbrella name of Open Banking, there are plenty of opportunities to look at and decide what fits better for a given organization. The first part of the chapter explores how far the evolution of FinTech in the banking arena is going and how regulation, technology innovation are changing the industry towards an Open Banking paradigm. In the second part business platforms and ecosystems are analysed and it is suggested that strategists can not longer take their value chains as a given but must cope with a market where to evolve and be resilient are mandatory elements in strategic planning.

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