How do you know if you are disrupted?

Or how do the banks know that…

Recently I’ve read a very interesting book about the disruption that happens in the banking sector. I’ve learnt that this is not the first book about the topic and I wanted to understand how things are actually working with AI and the banking sector.

We’ve published a paper a while back about the introduction to AI for bankers, but I wanted to know more about what has happened since then. The link to the paper is here: https://doi.org/10.2308/jeta-19-04-30-21

So, what’s new about this particular book? Or what’s new about the disruption?

The book talks a lot about the financial sector and how it evolved over the years. Bank 4.0 is a bank which is powered by AI and is able to reason about your economy at a higher abstraction level. Instead of asking “Siri, how much money do I have on my account?”, we can start asking questions like “Siri, can I affort buying the new Playstation 5?” and the assistant will answer that you can, but then you need to cut down on your vacation expenses and maybe replan the purchase of the new mobile phone (which is getting old).

A small disclaimer here: I use Siri as example, this has nothing to do with Apple services (at least nothing that I’m aware of).

Another interesting aspect of banking 4.0 is the fact that financial actors are more trustworthy than the banks. The young generation would rather interact with the actors like WeChat (https://metrics.blogg.gu.se/?p=407) than interact with the bank.

However, what I like best about the book is the fact that it problematizes the concepts related to disruption – for example how do you know that you are being disrupted? or when should a company start pivoting, or even whether pivoting or abandonment of the old model is possible in the company that is being disrupted.