The Ways to New

Chapter 17Business Model Disruption

How about opening a bank account at the local tobacconist? Who would have thought of that? Nowadays, though, such things seem almost natural. The most astounding commercial ideas abound. Companies leap from one market to the next. Cautious, old-fashioned diversification, with its notions of adjacency and broadening product ranges, has gone the way of all things. Vertical development strategies (like Delta Air Lines buying a Pennsylvania oil refinery) and horizontal ones (like Pepsi taking over Gatorade) are no longer at the forefront of discussion. In fact, words like “vertical” and “horizontal” do not really have a place in today's business jargon. People are innovating and diversifying all over the shop. Uber is pondering its next move. Will it become a grocery supplier? A postal service provider? Or a catering deliverer? Toms, of course, has gone from selling shoes to growing coffee.

Opening a bank account at the local tobacconist's is something now possible with Nickel in France.¹ You can transfer money, arrange direct debits, deposit cash, and pay over the counter in 28 million outlets, spread through 215 countries, as well as making online payments and using ATMs…all for 20 euros per year.

This business model is different from normal banks' in several ways. There is no screening: anyone can have an account. There are no forms to fill out. All fees are inclusive, even the cost of setting up an account. Depositors' savings are not placed ...