Platformification is a relatively new business model happening in FinTech that is enabling companies to lift-out entire operations and benefit from mutualisation.
By Andrey Yashunsky, CEO and Founder, Prytek
Platformification is arguably the love child of increasing consumer demands, constantly changing industry regulations and the emergence of a range of next-generation technologies. In banking, for example, the never-ending regulatory standards have made it nearly impossible for smaller and medium-sized banks to invest in the technology that larger banks can comfortably (and quickly) afford to build in-house. As a result, platformification has quickly become a lifeboat for many banks that are determined to keep up with the digital transformation taking place in the industry, while also maintaining profitability.
BOPaaS (Business Operating Platform-as-a-Service) describes an advanced style of platformification that combines the standard benefits of managed services, with advanced access to cutting-edge technology and leading industry expert advice. Through its adoption, firms immediately benefit from a vertically integrated ecosystem: new technologies are designed and built at the heart of this ecosystem, which can then be cross-leveraged across all the businesses connected to it. This technological innovation, which is made possible through the mutualised R&D costs, helps to entirely transform business operations and job functions. A recent example is Karbon, a customer lifecycle management (CLM) product that is currently being offered by Delta Capita, a global managed services, technology solutions and consulting provider. The creation of Karbon was made possible through Prytek’s investment in Blackswan.
A hybrid approach to managed services
The integrated nature of BOPaaS is what makes it special: It is a hybrid of technology-based managed services and recommendations, engagement and interactions with industry specialists. Both are equally important. The development of state-of-the-art technology would be wasted if it wasn’t in the hands of an expert that knows how to effectively implement it in a way that can transform operations, and ultimately enhance the end-user experience. It is also important to know that it is not just the financial services industry that can benefit. For example, Prytek also operates BOPaaS in the cyber-education and HR sectors, and has plans this year to expand its reach further. Ultimately any industry that relies on human data input, or expensive centralised models, and is determined to improve client satisfaction could benefit from platformification and BOPaaS.
Driving technological and service innovation
These types of platforms are not only driving technological innovation, but they are also enabling firms to spend more time engaging with clients and strengthening business relationships. They are taking over the responsibility of the businesses’ non-differentiating operations as well as the responsibility to monitor for changing regulations, customer demands and digital transformation opportunities. By freeing up more time and effort of employees, BOPaaS customers can focus on the aspects of their business that makes them truly unique – which is almost entirely the way it delivers its customer service.