November 6, 2020

Platformification: How Credit Unions Can Leverage Platform Technology

A platform is a technology foundation upon which other applications, processes or technologies are developed. In computing, a platform is the hardware (laptop, tablet, etc.) and operating system (Windows, Android, iOS, etc.) which runs software applications.

Historically, platforms were created on specific operating systems, and platforms created for a specific system won’t work on other platforms. Today, open interfaces allow for some applications to run on multiple platforms, while some forms of technology are cross-platform (i.e. video games).

Some applications can even allow for the installation of third-party tools, plugins, and extensions. These apps are called digital platforms, and these wide-ranging platforms existing in the form of anything from web browsers (Google Chrome) to database applications (SQL) and much more.

In the fintech space, platforms have spurred a new wave of innovation, allowing for financial institutions to connect with a number of third-party service providers. Over the last few years, this has led to the development of many new tools and features that enable users to manage their finances in a wide variety of ways. Although, big banks have had a head start with platformification … credit unions now have a way to catch up.

It’s no secret that younger generations are more likely to use mobile banking and fintech apps to manage their finances, as development has evolved rapidly in the space over the last decade along with the rise of smartphones. This, combined with historically stringent legacy structures, has led to environment where traditional financial institutions have begun exploring platform-based business models as traditional digital banking models fall to the wayside in order to compete.

The ever-growing prominence of platformification can mainly be attributed to three realities: consumer demand, economics, and recent technological developments.

At Constellation, we have developed a platform that allows credit unions and fintechs to work together to easily offer enhanced mobile experiences and new services to members. Credit unions now have the ability to integrate digital services from a variety of fintech providers, without being shackled by the outdated legacy structure that they have been stuck with for so long. Fintechs of all shapes and sizes can now create discreet functions or services that credit unions can purchase and combine into a single seamless user experience, ultimately allowing the credit union to pursue a multithreaded digital strategy for the first time by sourcing their solution from many providers instead of just one.

Platform technology has enabled us to connect credit unions with a number of leading fintech developers in a single secure ecosystem – something that has not been possible until now. This allows credit unions to enable new features for members while also providing a seamless, frictionless experience for all.

Integrated platform technology that provides enhanced digital experiences for credit union members is finally a viable option through Constellation. If you’re a credit union that wants new ways to engage your members, or a fintech service provider that has what it takes to transform the industry, let’s connect further to discuss how you can partner with us.

Sources:

http://www.techopedia.com/definition/3411/platform-computing

https://financialit.net/blog/platformification/future-platformification

https://thefinancialbrand.com/60019/the-platformification-of-banking/