With payment channels, e-commerce sites, and other digital platforms seen to drive innovation in the next few years, it is increasingly becoming more imperative for businesses to be able to adapt by being present in these platforms, according to the head of Union Bank of the Philippines (UnionBank)’s fintech spin-off UBX.

“We are moving to a platform economy. Digital is enabling a move from vertical integration to multi-sided platforms, and this requires a change in business models,” UBX president and CEO John Januszczak said during a webinar on adopting a digital mindset.

As the world continues to move toward full digitization, solutions providers are expected to keep creating new digital services and products aimed at improving various facets of everyday life.

Through platforms, these solutions can become interconnected and interoperable, enriching the overall user experience.

Januszczak said that with platforms becoming increasingly relevant in the new digital normal, its important for businesses to be able to establish their own platform, or at the very least be able to integrate their solutions into other platforms.

He said if they don’t do this, not only are they risking giving their competitors an advantage, it may even make it harder for customers to patronize their solutions in favor of platform-linked alternatives.

Januszczak said with the platform economy, it’s no longer just partnership or just competition, but a balance of both.

“You have to think about collaboration and competition coexisting,” Januszczak said, adding that this is something that businesses must keep in mind in order to provide a streamlined experience for customers while still being able to differentiate themselves from competitors.