CIMA E2 Syllabus A. Business models and value creation - Disruption to Finance Function - Notes ^{1 / 8}

technology is used to fundamentally change and ‘disrupt’ the existing business model in an industry. For example, Self-drive cars, 3D home printing and drones being used to deliver products.

Some technologies used to disrupt the existing business model are:

1. Financial Technology (Fintech) -  It has disrupted the traditional banking sector because of its benefits like personalised and better services to customers, better use of data, lack of physical presence, lower costs and access to cheap capital to fund growth.

2. Cryptocurrencies - This aims to be a digital form of money meeting the attributes of physical money like store of value, medium of exchange and unit of account, for example, bitcoin.

3. Blockchain - A blockchain is a network database where everyone in the network gets a copy of the whole database. Everyone can have access to all the public information but only a user who knows a special cryptographic key is able to add a new record. As long as that user remains the only person who knows this key, no one can manipulate their transactions.. This can be used by businesses as a secure way to transact with each other and provide absolute certainty over the current location and ownership of materials. Benefits of blockchain include data security, cost and risk reduction and transactions transparency.