New Business Models
Changes Challenges Choices
  • Trends in new business models continue to accelerate, particularly the shift to servitisation, pay-as-you-use and pay-for-outcomes
  • Fintech 2.0 will bring significant changes, with the big successes coming when incumbents and new entrants combine forces
  • There will be growth in the use of global platforms to enable and support local services
  • Many businesses will have to adapt their business and operating models to match consumers’ expectations
  • With the continued growth of FinTech, all financial services players need to understand their unique value within this ecosystem
  • Local businesses and existing and new dominant global platforms will need to interact to deliver glocal solutions
  • How could you adapt your business and operating models towards servitisation, pay-as-you-use and pay-for-outcomes? 
  • Who are the main actors in your business ecosystem (including major global platforms) and how could you deliver or benefit from a glocal approach?

The Covid-19 crisis has led many businesses to digitise their services and open their minds to new ways of selling and delivering their products and services.

Business models had already been moving towards recurring, usage or value-driven models:

  • Servitisation – Rather than paying to “own” a product, paying a recurring fee to access/use it
  • Pay-as-you-use – Paying upfront and not being tied to a contract or commitment
  • Pay-for-outcome – Paying only for the value a service offers

Operating models have also shifted, with an increasing preference for more resilient cost structures that scale up or down depending on the revenue generated. For example through:

  • Cloudification – Enabling businesses to pay only for the infrastructure they require at a particular time, scaling up or down according to demand
  • The gig-economy – Providing a more flexible workforce that they can scale as needed
  • Distributed sourcing models – Avoiding dependence on single suppliers or distribution chains

We expect many of these transformations to continue and accelerate in every sector.


The age of FinTech 2.0

As the number of FinTechs continues to rise, the ecosystem of the financial services sector is now more complex than ever. The small, nimble new entrants are often leading the way in applying new business and operating models. These innovations have the potential to bring enhanced customer experiences.

However, businesses and consumers also value the reliability and trust that only larger, more stable businesses can provide.  We predict that the significant changes (and successes) in the coming years will be where new entrants and incumbents combine forces. They will leverage their unique strengths to deliver innovative and trusted services to their customers.


The shift to glocal

Some major platform providers have reached a level in their operations which enables them to innovate and deliver an unrivalled digital experience, allowing consumers to access products from anywhere at an affordable price.

Yet consumers equally value the virtues of local products and services. Combine this with the growing demand for more sustainability, and we see momentum building towards global digital platforms that focus on local services as a key differentiator.

Figure 9

Advantages of local service providers and global platforms

More chapters about Unification Taming Diversification

Digital Currencies

Digital currencies, whether public or private, can provide attractive alternatives to fiat money for certain use-cases. However, businesses face the new challenge of identifying which use-cases will deliver the greatest impact for them.

Learn more about Digital Currencies ›

Green Payments by Design

The digital world represents a 7th continent in terms of water and energy consumption. Actions are needed to reduce its footprint. This also applies to digital payments. An effective reduction of the environmental footprint of payments can only be achieved by working across organisations and taking a full end-to-end life cycle assessment approach.

Learn more about Green Payments by Design ›

Context Aware Services

The rapid growth of available data sources will demand responsibility, relevance and quality from AI-based automated decisions, maintaining ownership and confidentiality of data and ensuring fair and loyal decision-making by autonomous processes.

Learn more about Counterfeit Detection at Scale › 

More resources

We work together with several platforms, Independent Software Vendors (ISVs), and system integrators in different industries and geographies to create complementary payment solutions. Join our partner network to reimagine the future of payments, reach more customers and boost payment performance.
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