Financial Infrastructure on the Cusp of Revolution

The author reflects on how organisations often underestimate new technologies and their impact on business models. This was evident in the mobile revolution and cloud computing, where companies focused on adapting to existing products rather than embracing change.

China's rise in electric vehicles is cited as an example of a country that chose not to compete with Western manufacturers by playing the same game, but instead made a long-term bet on electric vehicles, battery technology, and manufacturing capability. Today, Chinese manufacturers are among the world's largest producers of electric vehicles.

The author suggests that banking may be approaching a similar crossroads, where traditional banks focus on benchmarking themselves against each other rather than considering new competitors who are building entirely different financial infrastructure. These new organisations assume settlement should happen in minutes, markets operate continuously, and assets exist digitally, move globally, and can be managed through software.

The author notes that this is not just about cryptocurrency, but the evolution of financial infrastructure itself. Money is becoming programmable, assets are becoming tokenised, and settlement is becoming faster. This has the potential to change how capital moves through organisations, making treasury a source of competitive advantage for businesses that can move capital faster and automate processes.

The author warns leaders to look beyond today's competitors and consider what new technologies may bring in the future. History has shown that significant changes often start quietly before reaching a point where customer expectations fundamentally change.