This article serves to highlight the rising role of open source digital banking platforms in creating value chain economies in this digital age.

1. Rise of Open Source Digital Banking in Creating Value Chain Economies
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Introduction:
In the Euro Banking Associations May 2016 article on “Understanding the business relevance of Open APIs
and Open Banking for banks”, open APIs and open banking, commonly known as open source digital banking
services,are digital financial services platforms whereby solution providers, operating under one brand name,
support the value chain financial ecosystems.According to Allied MarketResearchJuly 2020 report,the global
digital banking platform industry is projected to hit US$10.87 billion by 2027. Globally, there will be gradual
shifting towards all-digital banking platforms, driven partially by increasing number of internet users and the
growth of value chain ecosystems.
Open Source Digital Banking, Digital Monies, and Digital Value Chain Economies:
More governments are fast-tracking their national plans to promote innovations and to transform their
economies to go digital and to integrate value chain ecosystems with other global economies. One of the key
components to support this digital transformation journeys is to turn physical money into digital that can be
used to sustain digital value chain economies by supporting other digital value chain economic platforms.
There are growing voices and discussions in creating digital currencies among governments and potential
alliances with other governments, such as those in the European Union, to support cross-border digital
currencies’ flows. The controversies surrounding Libra, a form of permissioned blockchain digital currency
proposed by U.S. social media company Facebook, Inc, remains a catalyst for governments around the world
to create their own national digital currencies.
Impact on existing workforce and demand for newskillsets:
For professionals who are working in the banking and financial services sectors, this calls for a major mind-
shift to be a key differentiator among bankers who are used to relying on traditional banking platforms,
processes and tools to support their works. Are bankers working in departments providing open source digital
services to their customers are to be regarded as digital bankers? Are the information technology developers
working on open source digital banking platforms to create digital products and services regarded as digital
bankers? My answerto this question is both: the next generation of bankersshall play the hybrid role of bankers
and developers. They shall base on customer requirements to create and to provide digital banking products
and services to cater to client requirements. Currently, due to the global lack of talent and digital skillsets as
highlighted the World Economic Forum: The Future of Jobs Report 2018, the lower barriers of entry, vis-à-
vis the traditional banking market, make this an attractive career paths for new and mid-career professionals
and to offer them quicker career progression paths.
Adoption ofOpen Source Technologies:
Consumers should always look for great technologies employed by open source digital banks whose founders
clearly know and understand exactly what their technology strategies can work for them. The same holds true
for open source digital banks whereby they should focus on the effective use of design thinking, artificial
intelligence, and how the use of data extensively, instead of relying on traditional performance metrics. Open
source digital banks who deploy emerging technologies such as machine learning, blockchain technologies,
advanced algorithms or artificial intelligence are standouts among the crowds. With the recent bankruptcies
by many traditional brick-and-mortar corporations operating in the global travel, tourism and retail sectors,the
motivation for their financiers to go digital and adopting open source technologies has been accelerated even
further and that momentum does not seemsto stop, as the global economic fallout from the pandemic situations
continue to impact on the banks’ balance sheets.
Disruptive, Open Source Digital Strategies:

2. Rise of Open Source Digital Banking in Creating Value Chain Economies
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How open source digital banks manage their own disruptive digital strategies speak volumes of their
capabilities to leverage on their open source digital technological platforms to provide unique products and
services to their clients. It is among some of the key differentiating factors separate open source digital banks
from traditional banks, and from the rest of their own digital competitors. One of the best indicators I have
found for open source digital banks who have successfully applying their disruptive strategies is to examine
their open source digital strategies matching the value propositions offer vis-à-vis their traditional banking
competitors. Some of these indicators include the emerging technologies being deployed on their open source
digital platforms, the number and the profile of customers accessing their various open source digital channels
and solutions, and their transparency in fees and charges levied on their customers.
Conclusion:
Asmore countries and governments are moving towardsthe digital age, the role of open source digital banking
providers will play an increasingly important role in supporting global value chain economies that will be able
to connect with other economy platforms in this new era of open source digital economies. But the most
important of all, are the abilities of the workforce to be able to manage and to adaptto transformational changes
to keep up with these changes for the good of themselves and for the economies they are working in.
About the Author:
Andrew Koh is an award-winning thought leader, keynote speaker,industry trendsetter,finance & technology
champion.
References:
Allied Market Research: Digital Banking Platform Market by Component (Solution and Service), Deployment Model
(On-Premise and Cloud),Type (Retail Banking and Corporate Banking),and Banking Mode (Online Banking andMobile
Banking):Global Opportunity Analysisand Industry Forecast, 2020–2027,July 2020
EURO BANKING ASSOCIATION: Understanding the business relevance of Open APIs and Open Banking for banks,
May 2016.
World Economic Forum: The Future of Jobs Report 2018,17 September 2018