In a 2014 inFocus we made note of the Great Restructuring that had been impacting and that continues to impact several sectors of the economy: “Many industries are experiencing heightened and frequent disruptions, often stemming from innovations in their fields, falling barriers to entry, transgressions into those markets by former non-competitors, oversight and regulation from government and, in some cases, wholesale sea changes that seek to reinvent the entire business model of the industries.” We further noted that the financial services industry was becoming the next victim of such disruptions. The financial services industry is now following the retail model into a digital-only or limited-physical way of operating.
From cash to e-money, China has become an early exemplar of how legacy industries in the developed economies might get disrupted by new ways of operating – a reality that has come true in terms of financial services.