Innovative technologies may change how financial services are delivered, but ultimately they are the means, not the end. Fintechs and other banking disrupters have targeted pain points and are tackling them with fresh business models. Banks and credit unions that would survive and win must beat them at their own strategy. I found cause for reflection in an interview in the MIT Sloan Management Review with Clayton Christensen, who was looking back at his “Theory of Disruptive Innovation” almost a quarter century after devising it. He explained the term “disruptive innovation” in this way: “Disruptive innovation describes a process by which a product or service powered by a technology enabler initially takes root in simple applications at the low end of a market — typically by being less expensive and more accessible — and then relentlessly moves upmarket, eventually displacing established competitors.”

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