The Great Unbundling: How Technology Is Making Financial Services Modular and What It Means for Inclusion

Innovation is profoundly transforming many economic sectors – and financial services are no exception. This paradigm shift is not just bringing innovative services to the market, but potentially changing the very nature of banking. As legacy banks struggle to digitize, whole new categories of business models are emerging that approach financial services in a very different way. This publication, aimed at financial service providers, policymakers, and regulators, shares CGAP’s perspective on how financial services are changing through a business model lens. It highlights which technology forces are driving the transformation, how the production and consumption of financial services are changing, what new business models are emerging, and how this is changing the nature of retail banking as we know it