Digital Platforms - The Most Preferred and Dominant Business Model

Digital Platforms are responsible for reshaping the global business worldwide

As per the current trends, digital platforms will soon become the most preferred and dominant business model for many e-commerce, social media, gaming, and banking sector. With these platforms, small businesses and consumers are getting the ability to use numerous services including financial too. Many experts believe that the global business with digital platforms will increase in upcoming years. If you are thinking that these platforms have developed in the past few years. Then it’s wrong because these platforms exist for many decades. But with technological advancement and digital services, it has dominated the regular interactions between customers and businesses.

Almost, every digital platform provides different services such as easy distribution, high-frequency transactions, cloud technology, data analytics, online, and mobile integration. All of the above features have resulted in the stickiness of the digital platforms. Nowadays most customers across the world spend half of their day on digital platforms. This is the reason why digital platforms are taking away the economy at an unprecedented level with an unstoppable force. Therefore, it’s no doubt in saying that most of the world's financial institutions and 7 out of 10 top global companies are working and accessing their business with digital platforms.

As a result, financial institutions and global level companies are developing the strategy for digital platforms which are relevant to their market positions, customer service proposition, and objectives. However, if you are thinking that infrastructure is responsible for the digital platform’s success in this fast-paced environment. Then you are wrong and it can be proved well through an example. Like, Uber the world's largest taxi platform owns no taxi, Facebook, the biggest social media platform holds no content, Alibaba, the biggest e-commerce platform has no inventory of its own, and Airbnb, the world's largest accommodation provider has no real estate. It’s not the infrastructure that resulted in the growth and popularity of the digital platforms. Instead, the customer relationship has developed with the platform.

From the digital platform provider perspective, the top companies will partner with them and develop an ecosystem where customers need not go anywhere and can use the financial services. Hence becomes the frictionless part of their lives. But one added elements sit on top of the customer relationship and user interface. It’s only trusted without it no business model can even work and get succeed with digital platforms too. Customers choose to even maintain their business relationship only with that business that maintains their trust. Because it makes them feel safe when using the business digital platform following the recommendations.

However, for facilitating the value exchange for business, it’s important to use the multi-sided platform that brings up together customers, service providers, and stakeholders. Moreover, digital platforms are shaping the digital economy and businesses on a global level.