Continued from my earlier Post 1
Understanding Industry Platform Vs Community Platform
- Who does it serve?
- What does it seek to achieve?
- When does it become relevant?
- Why is this needed and required?
“Integrating Market Community Into The Decision Making Process”
Industry Centric Platforms are inherently designed to invest significant portions of their time, resources and expertise in building private enterprises and businesses. While this approach is important to ensure creation of strong and viable enterprises, it falls short of capturing the aspirations and on-ground needs of a large section of the market community. This becomes decisive in deciding whether policies and regulations gain acceptance at ground level. While this model has served its immediate purpose and objectives, in a demanding and often less tolerant market system, the Industry Centric Platforms fail to rise to market expectations and standards.
On the other hand, Community Centric Platforms by their very definition fulfill the following important market objectives in a quick, efficient and purposeful manner –
- Help in going beyond information access to information validation and relevance
- Ensure effective decentralisation of collating market needs, insights and feedback
- Enable access to market community opinions thru on-demand and frequent exchange
- Assist in aligning business policies and regulations closest to real market requirements
For long term, sustainable and effective market ecosystem, it is vital to integrate the community into the decision making process. This ensures collective buy-in and involvement of all stakeholders for a robust marketplace. In the present environment, where access to information and expertise is all pervasive, an active community centric policy framework can deliver greater inclusion in decision formulation process. This is where Community Centric Platforms come in.
“Business Architecture Defining Industry Priorities Vs Community Priorities”
How meaningful and relevant can Community Platforms be in the larger scheme of things? Can Industry Platforms and Community Platforms co-exist or does one model end up replacing the other? What does it take to sustain long term and relevant Community Platform objectives?
As in every other business or industry, a model need not be defined based on it replacing or substituting any existing alternative. In this situation, we do believe that both the Industry Platform as well as the Community Platform need to co-exist for achieving market objectives.
It is important to closely examine the motivations and dimensions that are the success-drivers for each model and the objectives they seek to accomplish –
Industry Centric Platform –
- Primary Focus on institution strengthening process
- Product manufacturing takes priority & precedence
- Promotes “Policy – Regulation – Industry” coupling
- Building & retaining best practices for “self growth”
Community Centric Platform –
- Primary focus on the community strengthening process
- Market needs & requirements take priority & precedence
- Promotes “Community – Policy – Regulation – Industry” linkages
- Building & sharing market best practices for “shared growth”
Community Centricity – The Changing Mindset
With the explosion and abundance of information access points, policy makers need to seriously look at building new ways to engage and collaborate with market ecosystem and stakeholder community. Developing deeper and more meaningful associations with community has never felt more important – as policymakers, regulators and product / service providers start discovering needs and interests of stakeholders much ahead of the decision making curve.
BFSI Mindset Challenges
- New Economic Order
- New Power & Mindshare Battle
- Need for New Generation Industry Leaders
- Need for change in Business & Economic Mindset
The BFSI sector is changing rapidly – this changing market landscape needs relevant, cross-participative and continuous market conversations for economic and social impact.
- Early stage involvement in policy matters to establish inclusiveness
- Share views and opinions in a form that supports decisions collectively
- Influence direction and form of market policies thru early engagement
- Broad base the decision formulation process to improve market productivity
Decision makers in the BFSI space will be better served by suitably aligning their policy framework to the needs of the broader community in order to achieve desired market outcome.
At the heart of the systemic change is the need to recognize and respect the growing demands of the Community Mindset – opportunity and ability of BFSI community to influence the manner in which market decisions are made. Rather than be seen as mere appendages to the market evolution process, individuals and communities today carry a strong view and opinion on policies and regulations that impact society economically. They demand a fair opportunity to shape the course and direction of financial markets which Community Centric Platform delivers.
IFS Group successfully conducts its Maiden RoundTable
The first IFS Group Round Table successfully established an exciting and soul searching discussion regarding the state of the Financial Services sector. It clearly set the tone for the forthcoming India Finance Summit conference and identified the need for a compelling platform like the IFS Group.
Specifically, the Round Table sought to address specific systemic issues that are affecting the long term sustainability of this important market sector –
- Has the time come to completely re-architect the India Financial Services sector instead of just making token changes?
- What are the current global best practices that we can introduce in the financial market?
- Is the capital market becoming a private club belonging to a few instead of remaining a public market? How can we revive the interest in it?
- Is a regulatory overhaul needed because the existing framework is not working? Are the regulators equipped to understand the intricacies of processes of the sector?
- Do we need ‘de-siloisation’ of financial verticals?
Further it was felt that there are specific steps that the industry, along with the policy makers / regulators, need to take to take for a robust growth and long term direction –
- Rethinking required on the Concept of Financial Inclusion – Who should be included in it, the rural-urban financial divide.
- Need for Macro and Micro linkages in the Indian banking ecosystem.
- Are there issues within the regulators themselves? Is having a super-regulator the solution? Is over regulation killing our financial markets?
- Rethinking the practicalities and processes involved in mutual fund, pension fund investing. Bringing transparency, reducing transaction time and costs etc.
- A look at the current surveillance, punishment and disgorgement system to ensure that investors have confidence in the system.
- There is a need to draw a line between safety and economic growth. How do we keep our financial system safe?
The persuasive arguments put forward by the members on the debatable topics and the direction of the summit reinforced the need for an unbiased BFSI platform. Clearly a dream start for a distinctive community centric BFSI platform.