Modularization refers to the existence of numerous players in a decentralized value chain, each using digital technology to provide a specialized service that meets the needs of other value-chain players or end-customers. In financial services, modularization represents an alternative to the vertically integrated market structure long dominated by large banks and other institutions.
Modular financial services and their providers are abundant today, especially in consumer and business banking.
We cover the different types of modular banking services and value-chain roles in modular financial services. We also cover the issues to consider for incumbents, fintechs and other challenges, and big tech companies who are engaging or actively monitoring the space.