Self-disruption has become the most reliable defence against being disrupted by someone else, and businesses across sectors, banking included, are increasingly building the capability to challenge their own models before a startup or global platform does it for them.
The scale of platforms like Airbnb shows what’s possible
Airbnb transformed an entire industry after launching in 2008, growing into a platform spanning tens of thousands of cities and hundreds of millions of guests, then expanding further into experiences and tours rather than staying confined to accommodation. That trajectory, from a single disruptive idea into an ever-expanding platform, illustrates why incumbents can’t treat disruption as a one-time threat to be defended against once.
Why banking took this seriously early
Financial institutions operating in emerging markets face particular pressure to innovate given the scale of currently unbanked customers and the pace of new market entrants offering alternatives. Some banks chose an incremental, evolutionary path toward digitisation, while others pursued a more radical redesign of how they operate, both are legitimate responses depending on a business’s risk appetite and existing infrastructure.
Building innovation into the business, not bolting it on
The businesses that manage self-disruption well treat lean, entrepreneurial thinking as a core operating principle rather than a project assigned to a single innovation team. Concretely, that means regularly testing new ideas cheaply, tracking which digital-native competitors are gaining traction in the sector, and being willing to cannibalise an existing revenue line before a competitor does it first.
Frequently asked questions
What does “self-disruption” mean for an established business?
Proactively challenging and evolving your own business model before a competitor or new market entrant forces the change on you.
Why is Airbnb often cited as an example of disruption?
It transformed an entire industry from a single idea, then kept expanding into new services rather than staying confined to its original offering.
How has the banking sector responded to disruption pressure?
Some banks pursue incremental digitisation, while others undertake a more radical redesign, both are considered legitimate strategies depending on risk appetite.
What does it mean to build innovation into a business rather than bolt it on?
Treating lean, iterative thinking as a core operating principle across the business, not a task delegated to a single innovation team.
Should an established business be willing to cannibalise its own revenue?
Often yes, proactively disrupting an existing revenue line is generally safer than waiting for a competitor to do it first.
Originally published in November 2016. Updated September 2026.
Financial sector innovation context via the South African Reserve Bank.
Further reading
Originally published in November 2016. Updated September 2026 to confirm self-disruption has become standard strategic advice across sectors, not just banking, in the decade since this article was written.
