The Rise of Platforms & the Incumbent Response
The rise of tech firms leveraging marketplace dynamics to achieve hyper-scale has had a profound impact on a range of industries, from communications to entertainment, from retail to transport. For financial services, nowhere has this impact been greater than in China – where the two dominant platforms offer an ever-increasing range of both financial and non-financial services, integrated via a frictionless payments layer. As these platforms continue to grow and internationalise, what are the implications for incumbent banks, payment companies, and other ‘linear’ financial service providers? How might platform economics disrupt existing business models, and how might regulatory changes disrupt platforms themselves?
James Lloyd, Asia-Pacific FinTech Leader, EY