The 5th Annual Global study of “Innovation in Retail Banking” by Efma & Finacle by Infosys studied 148 banks from 66 countries focusing on ‘simplifying technology to innovate’ & global innovation trends. There was a particular emphasis on identifying how banks can overcome any barriers to innovation and how they can work to improve their innovation capabilities,
According to the survey, Banks clearly recognize the need to improve innovation in order to protect existing markets & profitability given growing ca landscape of growing competition as well as ever changing consumer and technology trends.
Of particular interest:
There is a big emphasis for Banks on increasing “Customer Centricity” which is about focusing on products & services that are right for their Best Customers.
Also, whereas only 37% of Banks surveyed in 2009 had an actual Innovation Strategy, 60% of those surveyed in 2013 had an Innovation Strategy. Overall, 77% of Banks surveyed, indicated that they were increasing investment in order to be more innovative. Approximately 26% of that investment being targeted for Channels, 21% for Products , 18% for Process Innovation and 16% for Customer Service and Experience Innovation.
The biggest barrier to innovating, regardless of their size was noted as “IT Systems” delaying time to market for a new offering most often because those same “IT Systems” often are involved in other changes relating to mergers or compliance changes etc.
We take that to mean that those Banks will be looking “afield” to source out Innovative technologies which seems to be supported with the 4.2 out of 7 that “Partnering with IT companies and other suppliers” received when Banks were asked about the effectiveness of several methods of Open Innovation Techniques.
Read the entire report on Innovation in Retail Banking from Efma and Finacle from Infosys here