When we think of banking, as consumers we rarely think of the complex mechanisms behind the scenes. We just think of our financial institutions as very large, powerful brands – rather than individual businesses that focus on deposits, investments, mortgages and loans, payments and clearing, risk management and insurance, broking etc. But the reality is far more complicated.

Even within one area – like payments and clearing for example – there are several different dedicated systems. From cash to cheques, direct entry and EFTPOS to BPAY and credit cards and beyond, these systems ensure that our economy ticks over day-in, day-out. And while the banking system – especially in Australia – is highly regulated, we have seen a great deal of disruptive activity taking place over the last couple of years. Innovators like eBay and its flagship PayPal have had their eye on the lucrative payments prize for some time. And with the iPhone 6, Apple is moving into the space with its Pay product.

And now, Snapchat – the massive online messaging service that turned down Facebook’s $3 billion acquisition offer – has stepped into the contest, partnering with payments innovator, Square, allowing Snapchat members to pay another member by sending a message with a dollar amount (eg $19.50). Called Snapcash it takes online payments to a whole new level, bypassing banks altogether.

Currently only open to Snapchatters in the USA, it requires that the member have a debit card and be over 18 years of age.

It’s an audacious move. And one that is bound to be rolled out to other countries in the near term.

But more than that – its a warning to all slow-acting executives – especially in countries like Australia where the pace of digital transformation has been abysmally slow. A recent report by Frost and Sullivan calls out Australian executives as some of the most digitally complacent in the world, leaving plenty of opportunity for smaller, more nimble innovators to sweep up market share faster than you can say Bankcard.

Looking more closely at the financial services sector, however, I see a much graver issue. Take a look at the launch announcement. Look at how it was amplified. Look at the production and messaging. And then think about who it targets and where their financial allegiances lie.

If the Boards of Australian banks are not rethinking their strategies, then the problem runs far deeper – and change will come faster than we (or they) could possibly imagine. In fact, it could happen in a snap.