In 2013, Google unveiled an ambitious experiment that captivated the tech world: Google Glass. Touted as a portal to the future, this augmented-reality headset promised to seamlessly meld our digital and physical realities. Journalists had been buzzing since 2012, and by its soft launch, industry pundits were confidently declaring the “year of wearable tech.” Yet, instead of a mass-market debut, Glass was exclusively released to a select group of ‘Explorers,’ predominantly in the San Francisco Bay Area.
In retrospect, this proved to be the project’s undoing. It starkly divided the tech landscape into literal “haves” and “have-nots,” with influential early adopters granted a glimpse into tomorrow while the rest of us were left to merely observe – and, disconcertingly, be observed. These Explorers quickly earned the moniker “Glassholes,” and concerns over privacy fuelled a slew of critical articles.
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Then, without fanfare, it vanished. By 2015, commercial production had ceased, transforming what was once hailed as inevitable progress into a cautionary tale. Google Glass didn’t falter due to a lack of technical prowess. Its demise stemmed from Google’s fundamental misjudgement of the public’s appetite for a solution to a problem they simply didn’t have. This is a crucial lesson we too often overlook, particularly within the financial services sector: nor every innovation equates to progress. Sometime, genuine progress lies in enhancing what already works.
What defines true innovation?
At its core, innovation is the act of creating something new. However, new doesn’t automatically translate to better. Financial services, especially payments, have witnessed their fair share of novelty over the last decade. Buy Now, Pay Later (BNPL) stands out as a particularly prominent example – disruptive, widely adopted and undeniably innovative. Yet, this model is now facing intense scrutiny and increasing regulatory pressure. Critics argue that BNPL encourages overextension, fosters poor financial habits and lacks the consumer protections inherent in traditional credit.
BNPL embodies a central tension in financial innovation: the quest for convenience clashing with the imperative to prevent exploitation. When the pace of innovation outstrips regulatory frameworks or ethical considerations, we risk developing systems that, while appearing sleek, ultimately prove unsustainable.
The past few years have also seen an explosion of blockchain-based financial products: decentralised finance (DeFi), NFTs, and a proliferation of altcoins and memecoins. Much of this activity promised to “democratise” finance and dismantle traditional systems. Yet, beyond a relatively niche audience, the vast majority of these projects have failed to achieve practical impact or long-term credibility. Their collapse or stagnation underscores the peril of mistaking mere novelty for genuine necessity.
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By GlobalDataCan progress exist without innovation? Absolutely. Some of the most significant advancements don’t spring from entirely new concepts, but from systemic changes – for instance, mandating that bank accounts must be accessible to individuals with disabilities. Placing NFTs alongside accessibility initiatives highlights the often-tenuous link between innovation and true progress.
Escaping the legacy trap
The financial services industry frequently relies on infrastructure that is decades old. Many of the systems processing our daily transactions are built on technologies that have been in place since the 1980s or even earlier. While these legacy systems may be trusted, that doesn’t necessarily make them resilient enough for modern demands. While these systems are indeed ripe for an upgrade, we must be careful not to discard the aspects that function effectively while we prune the less efficient components.
However, modernising infrastructure doesn’t always necessitate a blank slate. In many instances, the more meaningful form of progress is found in strengthening, streamlining and securing the systems that already underpin the global economy. In essence, this can involve utilising existing solutions more effectively or, as was the case with expanding access to bank accounts, making them more widely available.
It’s not that innovation is inherently perilous; rather, it’s innovation for its own sake – detached from purpose, regulation, or practical application – that often leads nowhere. Frequently, what’s truly needed is to genuinely understand what people require and then respond accordingly. Innovations like the iPod, which seemingly materialise from thin air to offer something previously unimaginable (“1,000 songs in your pocket”), are rare. Far more common are creations like the Miracle Mop, which apply intelligent thinking to existing designs.
There’s a prevailing myth within fintech circles that regulation stifles innovation. In reality, it often serves as a crucial foundation. Regulation provides the clarity and stability essential for innovations to scale, particularly when they touch sensitive areas such as data privacy, fraud prevention, or consumer protection.
Simultaneously, innovation can easily outpace existing regulatory frameworks. This isn’t an argument for disregarding regulation, but for approaching innovation with a keen sense of caution and responsibility. The recent collapse of several unregulated or poorly regulated digital finance platforms serves as a stark reminder of the consequences when innovation races ahead without adequate guardrails.
Progress, properly understood
The true engine of progress in payments isn’t the next flashy app or groundbreaking protocol; it’s the intersection of clear regulatory thinking, astute problem-solving and the pragmatic application of technology. A prime example of this is the revised Payment Services Directive (PSD2). Introduced in response to growing concerns around fraud and digital security, it not only addressed immediate problems but also laid the groundwork for future innovation.
PSD2 enabled the rise of Open Banking across Europe, granting consumers greater control over their data and creating new opportunities for fintech companies to offer improved, more personalised services. This is innovation grounded in genuine need, informed by robust regulation and aligned with consumer interest. In other words, it represents meaningful progress.
Technology isn’t the only – or even the most important – arena for innovation. One of the most overlooked opportunities lies in education. Financial literacy and inclusion remain deeply uneven across demographics and geographies. Without addressing this foundational issue, even the most elegant solutions will inevitably leave many behind.
Progress that genuinely benefits people means ensuring they can understand and use financial tools with confidence. Sometimes the right innovation isn’t an app, but a curriculum. Not a new platform, but a clearer explanation. Even the most sophisticated technological systems are useless if they’re inaccessible to those they’re intended to serve.
Rebuilding on solid ground
The tech industry’s long-standing infatuation with the mantra “move fast and break things” is drawing to a close. The collapse of several high-profile startups and the tightening of venture capital in a post-cheap-credit era have fostered a new sentiment – one that prioritises resilience over reckless risk, and clarity over chaos.
In this evolving environment, payments companies and fintechs are beginning to ask more intelligent questions. Not “What can we build?” but “What do people need?” Not “How can we replace what exists?” but “How can we improve it?”
Google Glass wasn’t a complete failure – It was an experiment, and experiments hold value. However, it serves as a potent reminder that simply being ahead of your time isn’t enough. The future doesn’t belong to those who shout the loudest about change. It belongs to those who genuinely understand where change is needed – and then build responsibly and with purpose.
Innovation is merely a means to an end. Let’s keep our focus firmly on actual progress.
Scott Dawson is CEO at DECTA UK with over 20 years of experience within the payments industry. He is committed to driving DECTA’s UK strategy forward, with a focus on its growth within the UK and supporting small to medium businesses with its broad range of payment solutions.
