From Open Banking Regulation to Platform Orchestration: The Evolution of Digital Platform Governance

Abstract

This study contributes to information systems (IS) scholarship by extending platform governance theory to regulatory contexts, explaining how regulatory forces co-evolve with technological architectures to shape openness and control. This research examines the evolution of platform governance in the context of open banking, where regulatory mandates compel incumbent banks to open their infrastructures to third-party access, by drawing on digital platform governance theory and a seven-year interpretive study. Open banking provides a unique empirical setting in which platform orchestration is co-constructed by banks, regulators, and emerging fintechs. The research identifies three phases of platform governance evolution: regulatory interpretation and codification, marked by technical prescription and restrictive due diligence; strategic platform expansion, characterised by curated innovation co-design and tiered platform access; and platform ecosystem orchestration, with distributed governance and adaptive gateways. The study theorises the antecedents, governance mechanisms, outcomes, and enablers and inhibitors shaping the three phases and the transitions between them. The study offers theoretical and practical insights for managing platform governance evolution, in policy-driven digital platform environments where platformization is not voluntary.