This paper proposes innovation model of the service industry, that is, the ‘Process Innovation Evolution Model’ by analyzing cases of the process of product and service developments, competition and stabilization of the market in accordance with the technological development in the financial service industry, which is recently experiencing the changes of economic and technological paradigm, and analyzes the evolutionary pattern of changes over time. In order to complement the limitations that most of the studies regarding the industrial innovation theory has been product-oriented from the manufacturing industry perspectives, the characteristics of the service industry are considered in this paper. In particular, the purpose of this paper is to understand the evolution process of the financial service industry fundamentally by analyzing at the level of the remittance function, which is the simplest and the most basic function of the financial services. The innovation process of the service industry is that the ‘service concept’ appears in the early years, and the focus of innovation moves from ‘service concept’ to ‘process’ as the market becomes settled, mass users widely adopt it, and industry matures. After that, process innovation goes through the stages of ‘standardization → simplification → modularization → convergence’. As knowledges about process technology and structure for the remittance abroad are accumulated and innovation efforts are made in the industry, remittance process has evolved and developed from the established mail and telex system in the early years to the SWIFT system → online banking based on Internet and mobile technology → the emergence of Fintechs. This study sets out some foundations for a claim that waves of innovation recur and shift to the next wave when occurring convergence innovation by which to unbundle financial services and to recombine with existing technologies mediated by Fintechs, eventually generating a new service concept. Based on the principles of process innovation, ‘fast’, ‘easy’, ‘cheap’ and ‘simple’, this paper articulates the importance of not only technical elements but also nontechnical elements such as customer participation in the service production process and change of interface between service provider and customer that are not involved in product production process in manufacturing industry for the process innovation in service sector. Our model has implications both for theory of service innovation and for management practice in banking industry.