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To better understand where the banking industry is heading and how it can thrive in the new environment of converged industries and competition, the IBM Institute for Business Value, in collaboration with Oxford Economics, surveyed 850 banking and financial markets executives across all major geographies and a variety of C-suite roles.

The survey sought answers to three key questions: What impacts are the changing currents around ecosystems, business models and business economics having on banking and other financial services organizations? What strategies are likely to be most successful for banks to adopt over the next few years? What steps can banking leaders adopt today to accelerate their progress toward obtaining a leading competitive position?

Most senior executives surveyed – 72 percent – agree that platform business models – and the ecosystems that underpin them – are disruptive for the banking industry: 70 percent of executives say that platform business models are driving changes in traditional value chains across the industry. 69 percent acknowledge that platforms are disrupting their organization’s own business and operating models.

As many as 79 percent of banking executives globally say that adoption of platform business models will help them achieve sustainable differentiation and competitive advantage with benefits across multiple dimensions. They identify profitability, innovation and access to markets as the top-three areas where platform models can drive advantage.

Visionary banks believe engagement with partners across platforms should increase their commitment to innovation, especially relating to the search for new and more valuable product and service combinations. They realize that radical transformation is required across business and operating models and in the way resources, business processes and technologies are assembled to create value.

The article explains how industry leaders engage in ecosystems effectively to access new markets and new geographies, and through intensive collaboration within new partnering arrangements, ecosystems have become an essential resource for building their new capabilities.

Executives of the most successful organizations surveyed embrace their existing ecosystems and expect to pursue new and different partnering arrangements. Outperforming organizations credit their ecosystems with generating value and innovation. The article looks at what they did differently than under-performers.

Ecosystems can drive a broad range of strategic opportunities including new engagement and monetization models.

Ecosystems help organizations access critical capabilities that would have otherwise been unavailable or very difficult to obtain. 10; 10; 10;

3BLeaders of outperforming organizations recognize the significant opportunity to improve skills by learning alongside ecosystem partners.