Anticipating Digital Disruption – Then, Now and What Next?

 “Learn from yesterday, live for today, a cure for tomorrow. The important thing is not to stop questioning.” – Albert Einstein

The entire world, today, is changing at a quicker pace than before and being an economist would say – ‘Demands are unlimited whereas supply is limited '. Consumers, today, demand faster means to satisfy their needs and hence in this global village that people come in, the digital disruptions are the order of your day when it comes to restructuring global business.

Possibly the single greatest way digitally enabled economy has been disrupted could be the pace and scale of change. A couple of years back, for a fruitful business to be designed, you'd look to make a value proposition to generate your most of profits and protect/defend it from the volatility of the market. It took years for competition to cultivate to your scale and reputation and it absolutely was possible to remain undisturbed in majority for an extended time. Even in this period, competition generally surfaced from within the sector. Now it may come from players within your category but also from new players or companies in unrelated categories.

Now with digital innovation – the time to plan and market a fresh service or offering has considerably reduced. Consumers are always looking for businesses that add value to their everyday lives. And with smartphones driving technology to the palm of these hands 24/7, new innovations and ideas have successfully created another phase of business.

But is disruption a negative thing? Isn't it really an opportunity for renovation disguised as a risk? Indeed, IBM had investigated the near future and recognized the necessity of digital disruption before growing from a Computing-Tabulating-Recording Company, to a worldwide leader of technology. Western Union noticed the signs and evolved from a telegraph system to identify the necessity of an electronic world and seized the chance become a number one financial services organization. Very few people knew that Nintendo actually produced and marketed playing cards, but with its intelligence and innovation along with farsightedness, the business grew to end up being the world's largest video game company by share of revenue today.

So while disruption, innovation and opportunity go turn in hand, what does which means that for today's financial institutions? Here certainly are a few key takeaways:

1. Live in the Mobile - Consumers all around the globe are glued into that little screen in the palm of these hands, and it's an opportunity that's been well utilised by the kind of Apple and Google. While we've moved our socialising and media to mobiles, payments will quickly follow suit. Adaption and innovation, with the end customer in your mind, maybe of utmost importance today. It's not only very important to be mobile but also ensure it's easy and fast.
2. Be Social – The existing generation of users is always on and always connected. Social media is everywhere. It's how exactly we communicate, share our lives and now our money! Imagine, banking right via an interface that allows you to continue conversations and not merely transactions?
3. Ensure Security – 84% of consumers who own a cellular phone trust their own bank the most to provide a mobile payment app. This can be a massive lead in favour of traditional banks and financial institutions to match up the convenience of Apple Pay and Google Pay. Fintech is advancing at a rapid pace, and it is very important that organizations make the most of these advancements to anticipate user needs while never compromising on user security.

It's worthwhile to note that competition remains ever changing. Western Union, despite all its innovation, now seeks to insulate itself from the low prices that a company like Transferwise brings to the market. With the rise in ubiquitous cellular devices, always-on access to the internet and a number of path breaking technologies, the payment services as we realize them today happen to be experiencing disruption. Perpetually connected customers are trying to reclaim control of the banking relationship and now look closely at how and with who they work with.

It's time to embrace the change and power ahead – you wouldn't want to be left out!