SAXO BANK CASE STUDY 17/05/2021 More liberalisation and flexible technology opens up or enables better partnership or outsourcing. Partnering also leads to distribution of cost, thus they will have more ability to spend on necessary areas. If they have full open API, it will be easier for the partners to blend and the most important thing companies or their partners who are specialized in a particular field would look for is to prioritize or to control personalize their client or users’ experience. After seeing the video, it is clear that open API would be more beneficial, since the partners can also control their client experience they would also be more open in partnering up with Saxo and Saxo can also have third party developers to create complementing innovations in their platform. And since Saxo has a unique business model where they act as a facilitator who with the help of different providers are enabling clients to enter the market through that technology, it would be appropriate if it will be fully open. Though, it can also consider partly open strategy as well, as it can approve what goes into its platform. There are several perks and disadvantages to both the scenarios Scenario One: Fully Open Leads opportunities for almost everyone to venture and provide their innovations in saxo platform. As it is fully open, partners would also be more open in partnering with Saxo. As Saxo doesn’t need to approve and monitor, it can spend its resources and time on it’s own applications Saxo Trader Go and others. But there is also this disadvantage of whether some may abuse their power as it is fully open and may also result in loss of potential revenue they could have attained from when it could have been Hybrid. Scenario Two: Hybrid Saxo has control over who and which application can be present in their platform. Saxo approves what goes into the platform thus limiting its time and resources which they could have spent on saxo trader go and their other applications. Since, it is not fully open, partners would be sceptical as well. MY SUGGESTION: I would suggest Saxo to go fully open. Of course, it has risks but as mentioned in the previous video about integration or separation, the main question Saxo must ask is “is it worth it’? Looking at their motives and vision of what they want to do in the future, fully open seemed more appropriate. Though hybrid may seem less riskier and though Saxo wouldn’t have control over much of their platform when it goes fully open, as Saxo deals with connectivity and wants to just facilitate a platform,( was also mentioned in the video that they wanted to help reduce the barrier of new entries through technology) it would be more appropriate to have a full open API where they can focus only on the core infrastructure while the 3rd party developers can focus on customer/client experience with ease which is a win win for both the parties if everything else goes right.
