By Dr. Vivek Gupta, Founder & CEO · June 2016
Modern enterprises are different! A modern e-commerce enterprise can be formed rapidly formed by connecting a cluster of services on a platform using APIs. For example, Shopify Platform allows a vendor to setup an e-commerce shop easily by integrating various services for doing payments, shipping, marketing and other functions.
What happens if there is a Shopify of banking? A platform that will allow various products (like cards, loans etc) and services like payments to come together using APIs.
Large retail banks are a collection of multiple products and services which are offered in a single enterprise. In a modern bank, the various services can be offered by small specialized companies and interconnected using APIs on a a platform. As silicon valley is chasing the banking services, there are some startups which are beginning to offer "Banking as a Platform." Solaris bank is one such tech company with a banking license. It is combining technology services with regulatory services for FinTech startups.
Existing banks have a lot to defend. APIs are attacking their fundamental edifice. While the battle will be shaped by fundamental economics of the enterprise, outcome will be shaped by a series of potential negative events which will define the regulation and public opinion.