What disruption means for financial institutions

first_imgIn today’s turbulent environment, every organization – including financial institutions – is susceptible to disruption.Disruptive innovation is an intuitive concept, mostly because we’ve seen the recent casualties of disruption:  Kodak, Blockbuster, Borders and Blackberry.  Most of us want to avoid a similar fate ourselves, or better yet, reap the benefits associated with being the disruptor.  Netflix, Amazon and Apple are prime examples. Disruptive innovation – or avoiding it – is now a widely embraced business imperative.The biggest competitive threats no longer come from within the industry. They’re the emerging players, technologies and alternative business models that seemingly crop up from out of nowhere.In the payments industry, there are numerous potential disruptions on the horizon that ride the trends of peer-to-peer lending, crowdfunding and fund raising.  Companies like Lending Club, Indiegogo and GoFundMe tap into these trends and are starting to chip away at traditional models.  Mobile payment platforms and alternative currencies like Bitcoin also create entirely new consumer experiences around transactions and represent cracks in the tried and true business models of yesterday. continue reading » 2SHARESShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblrlast_img

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