Market Drivers for Industry & Community Platforms – Part 2

IFS Group Logo (Positioning Statement) - Final                                    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.


Market Drivers for Industry & Community Platforms – Part 1

IFS Group Logo (Positioning Statement) - Final

“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 –IFS - Industry Centricity

  • 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 – IFS - Community Centricity

  • 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”

BFSI – Changing Mindset Driving Community Expectations

IFS Group Logo (Positioning Statement) - Final


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.


Post 2008 – Leadership Demand for a New Economic Order

IFS Group Logo (Positioning Statement) - Final

“For effective and sustainable policies & regulations, it is important to have inclusive decision making through closer engagement with Market Community”


Indian economy in general and the BFSI sector in particular have grown by leaps and bounds in the last two decades. This growth, combined with the resultant expansion of the market system, has been nothing but explosive. It has sought to build new market infrastructure institutions, overseen introduction of complex products and creation of downstream business opportunities. However, it still remains to be seen whether this growth has sufficiently expanded the scope of its work and impacted the core architecture of our markets in a sustainable manner.

Indian Financial Markets need to look around to learn and understand the impact that BFSI sector has left on global economies. Marquee and distinguished global financial institutions, some more than a century old, have been bitten the dust because of misplaced confidence, non-responsive governance, unsustainable practices but most of all, lack of QUALITY LEADERSHIP. While one recognizes the serious efforts made by economies globally since the 2008 crisis in terms of improved systemic structure, our task is far from exhausted. QUALITY LEADERSHIP has and still remains a challenge.

The challenge in the new global order for emerging economies such as ours is to create a sustainable market system that balances the growth aspirations with equitable and shared responsibilities and benefits. This can only be achieved by harnessing the vast reservoir of knowledge, wisdom and information that already exists through public-policy-partnerships so that it can support self-sustaining economic, social and cultural progress for every individual and institution. For economies to reach this stage of self-sufficiency it is imperative that the Leadership Culture & Quality in our markets is groomed for a more responsible and defining role.


IFS GROUP

Founded in 2012, the IFS Group is a pioneering community-centric initiative that seeks to influence Thought Leadership Transformation in BFSI sector. It will help bridge the gap between BFSI community professionals, market leadership, regulations and policy in critical business areas impacting this sector. The platform is designed to establish cross-business and market-wide network of Communities and Thought Leaders.

 IFS Group has successfully brought together some of the leading practitioners and market experts from around the BFSI sector to collaborate on this program. It will influence and impact policy making and strengthen market institutions in closely aligning growth with responsibility for a sustainable market ecosystem.

IFS RoundTable 10.08.2012

DSC_5852IFS 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 –

DSC_5876

  • 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.DSC_6035
  • 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.

IFS Group – Community-Centric BFSI Leadership Platform – PART 2

IFS Group Logo (Positioning Statement) - Final                                                  Continuation of my earlier post from Part 1

“Bridging Policy Purpose & Market Expectation”


IFS Group Community Platform seeks to foster closer co-operation amongst Policy Makers, Regulators, Institutions and Community with a view to support “Transformational Thought Leadership” in BFSI space. It advocates community centricity in designing operating rules, business practices, market governance and open competition.

IFS Group Platform Objectives –

  • Forum to promote “Conscious Economic Models” for sustainable market development
  • Forum to promote “Industry Dialogue” amongst Policy, Regulation, Markets and Society
  • Forum to invite, recognize, empower Intellectually-gifted individuals in the community
  • Forum to enable community professionals in directly “having a voice” on policy matters

Specifically the IFS Group Community Platform is designed to achieve the following objectives –

  • Promote inclusive governance, responsible private investment and sustainable economic growth and development for Indian Economy
  • Discuss, ideate and share global cues, developments and market initiatives including their impact on the international BFSI space
  • Discuss and research current issues and trends that influence BFSI markets and financial institutions
  • Provide a balanced, experienced and supportive discussion environment for industry leaders to enable collective decision making
  • Serve as a forum for business leaders to study relevant industry issues, exchange ideas and develop industry positions and solutions

IFS Group Community Platform, through its intensive economic assessment and deliberations, will support market evolution of BFSI space in multiple ways –

  • Explore and develop approaches to address real challenges in industry and institutions
  • Share experiences, practices and ideas around policies, regulations and management
  • Raise the quality of debate and dialogue in BFSI space to bring industry participants views closer to policy makers and regulators
  • Encourage focused knowledge and information sharing amongst policy makers, regulators, market participant and institutions
  • Fill a critical void acting as the leading connector between markets and policy makers

IFS Group – Community-Centric BFSI Leadership Platform – PART 1

IFS Group Logo (Positioning Statement) - Final


IFS Group is a social entrepreneurship initiative creating an industry-first, open standard Thought Leadership platform for community professionals from the BFSI sector. Market research & feedback have established the pressing need for a cross-market platform that supports views and opinions of industry professionals. IFS Group aims to fulfill this mandate.

IFS Group is building a “New-Generation Decision Support” Platform to bring BFSI community professionals closer to mainstream market ecosystem. Help uncover smarter, collective and sustainable decisions for the BFSI space in the process.

IFS Group - Platform Association Objectives

Our Purpose –

  • Influence Thoughts, Decisions and Actions in BFSI sector
  • Drive Transformational Thought Leadership in BFSI space
  • Enable “democratization” of decision making process for superior outcomes
  • Improve understanding of economic imbalances and market uncertainties

Our Path –

  • Respect “Individual” Views and Opinions
  • Promote Thought Diversity and Decision Inclusion
  • Balance Social, Ethical & Commercial sustainability
  • Support Unbiased, Independent and Democratic engagements

Our Differentiation –

  • Focus on the Community and not Institutions
  • Encourage innovation in thoughts and policy matters
  • Independence of Thought Leadership from market influences
  • Culture of sharing thru open standards, impactful choices and best practices

As “Voice of Community” IFS Group will promote alternative views to establish Transformational Thought Leadership through pan-BFSI industry dialogue, engagement & collaboration. Hope this becomes a vibrant community through the support of our well wishers and partners.