Skip to main content

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


Comments

Post a Comment

Popular posts from this blog

What is Biri marung?

Biri marung" is a term in Chewa/Nyanja, a language spoken in Zambia, Malawi, and parts of Mozambique. It directly translates to "hyena in the sky" or "flying hyena.  It is often used in folklore and traditional beliefs in African cultures to refer to supernatural beings or mysterious occurrences, particularly those associated with witchcraft or spirits. In music, "Biri Marung" is a popular Amapiano track released in November 2024 by South African artists Mr Pilato, Ego Slimflow, and Tebogo G Mashego, featuring Sje Konka, Focalistic, DJ Maphorisa, Scotts Maphuma, and CowBoii.  The song has gained significant attention, with its official audio available on YouTube.  Additionally, it has been featured on various music platforms, including Apple Music.  The track has also inspired dance challenges and covers on social media platforms like TikTok, contributing to its viral status.  "Biri Marung" has been recognized for its impact in the music industry...
Post a Comment
Read more

Professor Jahula and Student Anderson

Anderson a student of political philosophy at the University of Yakahuhu (a  pseudonym) had attended many philosophy classes but could not grasp the conepts. They were below the threshold of his comprehension. For this reason, he decided to visit Professor Jahula in his lone office to ask some few questions. Kindly read the dialogue below for details. Student Anderson: Good afternoon Prof. I believe you are fine fettle. How is your battle for  academic supremacy? Rosy, I posit. Please I have attended many of your classes on political philosophy but find it hard to grasp some concepts. Could you help? Professor Jahula : Good afternoon, Mr. Anderson. I've noticed you seem to be struggling with the concepts we've covered in our Political Philosophy class. Can you tell me what's been particularly challenging for you? Student Anderson : Yes Prof. I appreciate your concern. The truth is, I'm finding it quite difficult to grasp the essence of your teaching. It seems like we...
Post a Comment
Read more

Should a blogger blogs on a single topic?

Some people think blog posts would focus on a niche-topic. I may not be rigght but my option is NO. A blog is known to a a regularly updated website or online platform where persons or  individuals or groups share their thoughts, information, and experiences in a conversational style.  Blog posts are usually displayed in reverse chronological order, with the newest content appearing first, but the content mustn't be niche-concentration.  Blogs cover a wide range of topics, including personal experiences, hobbies, news, and professional expertise. Whether a blogger should focus on a simple topic depends on their goals and target audience. Simple topics can be effective if they resonate with a broad audience and are presented in an engaging way.  However, niche or specialized topics can also attract a dedicated audience. Ultimately, it's essential for a blogger to choose a topic they are passionate about and can consistently create quality content for. The key is to pr...
Post a Comment
Read more