PANORAMIC BANKING

04 March 2025

Dear iBankers,

Strategy and vision are two components that we often find missing in most organizations. Good ones, that is. In post AI world, traditional banking models are giving way to more integrated and customer-centric approaches. One of the most promising developments in this space is Panoramic Banking, a concept pioneered by Shanghai Pudong Development Bank (SPD Bank) that has significant implications for the Indian banking sector.

What is Panoramic Banking?

Panoramic Banking represents the evolution from Open Banking to a more holistic ecosystem approach.

At its core, Panoramic Banking builds platform-based ecosystems around customer life and production cycles, sharing brand, channel, customer, and technology resources with business partners.

Unlike traditional banking models that focus only on financial products and transactions, Panoramic Banking integrates both financial and non-financial services to create a seamless experience throughout the customer's journey.

The Evolution: From Traditional to Panoramic Banking

The journey from Traditional Banking to Panoramic Banking involves several stages:

1. Traditional Banking: Product-focused with limited distribution channels

2. Digital Banking: Digitally enhanced traditional services

3. Bundled Banking: Open banking capabilities with integrated fintech products

4. Panoramic Banking: Comprehensive ecosystem supporting customers' entire life cycle

Key Features of Panoramic Banking

1. User Experience Driven: Focuses on understanding and solving user pain points by integrating internal and external resources.

2. Trust-Based Approach: Builds digital credit systems to reduce information asymmetry between customers and financial institutions.

3. Value Co-creation: Opens capabilities to enable ecosystem partners to achieve win-win cooperation rather than playing zero-sum games.

Implementing Panoramic Banking: The Framework

SPD Bank's approach to implementing Panoramic Banking involves a comprehensive framework:

• Business Scenario Model: Structuring scenario information including actors, actions, objectives, and environments

• Cooperation Platform: Building partnerships across banking, technology, and ecosystem domains

• Capability Library: Developing standardized APIs and services

The implementation follows four key stages:

1. Planning

2. Design

3. Implementation

4. Operation

Scenario Twins: A Key Component

One of the most innovative as well as important aspects of Panoramic Banking is the concept of "Scenario Twins," which includes:

• Scenario modeling: Standardizing the basic elements of customer interactions

• User journey design: Constructing templates that mirror real-world user activities

• Open API design: Decomposing user journeys into API requirements

• Capability construction: Building the actual services needed

Relevance for Indian Banking

For Indian banks, Panoramic Banking offers several opportunities:

1. Customer-Centric Approach: With India's digitally savvy population, creating ecosystems around customer journeys can significantly enhance engagement and loyalty.

2. Partnership Opportunities: Collaboration with fintech, e-commerce, and other service providers can create new revenue streams beyond traditional banking.

3. Technology Integration: Leveraging existing digital infrastructure like UPI and Aadhaar to build more comprehensive customer experiences.

4. Regulatory Considerations: Working within India's regulatory framework to implement open banking principles while ensuring data security and privacy.

Getting Started with Panoramic Banking

Indian banks looking to explore Panoramic Banking should consider:

1. Mapping Customer Journeys: Understanding how customers interact with financial and non-financial services

2. Identifying Ecosystem Partners: Finding complementary businesses to create integrated experiences

3. Developing API Capabilities: Building standardized interfaces for secure data sharing

4. Creating Governance Frameworks: Establishing clear rules for ecosystem participation

Panoramic Banking offers a promising framework for creating more integrated, customer-centric experiences. But will Indian banks dare to move towards it? We’ll in the near future.