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Disruptive innovation in the Banking industry

Late Harvard business school professor, Clayton Christensen inspired us to go for distruptive innovation (democratze everything): create a new technology, product, or service that eventually disrupts an existing market, displacing established market leaders and fundamentally changing the way businesses and industries operate.

Here is a neighbourhood banking in a rural Lagos Nigeria. People walk to get  and send cash: send money, withdraw, pay bills and open accounts.

 Disruptive innovations often start by targeting overlooked or low-end market segments with simpler, more affordable solutions before gradually improving and moving upmarket to challenge traditional competitors.

In Nigeria and other African countries, Disruptive innovation in the banking industry happens in several ways:

1. Mobile Banking: Africa has seen a significant rise in mobile banking services, bypassing traditional brick-and-mortar banks. Services like M-Pesa in Kenya and other mobile money platforms have provided access to financial services for millions of people who previously had limited or no access to banking services.

2. Fintech Startups: The rise of fintech startups in Africa has brought innovative financial services to the market, often offering solutions that traditional banks do not provide. These startups leverage technology to offer services such as peer-to-peer lending, microfinance, and digital payments, disrupting the traditional banking model.

3.Digital Transformation: Traditional banks in Africa are also undergoing digital transformation to stay competitive. This includes offering mobile banking apps, digital payment solutions, and other online services to meet the changing demands of customers and compete with fintech startups.

4. Financial Inclusion: Disruptive innovation in the African banking industry is also driven by efforts to promote financial inclusion. By leveraging technology and innovative business models, banks and fintech companies are reaching previously underserved populations and offering them access to financial services.

To cap it all, disruptive innovation in the banking industry is driven by a combination of technological advancements, changing consumer behavior, and efforts to promote financial inclusion.
Reduce complex values to reach the unserved and the underserved markets. Create simpler-to-use solutions. Reach demands below premium intension-to-buy


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