Identifying Different Forms of Innovation in Retail Banking

Open Journal of Business and Management, 2014

AJIT-e Online Academic Journal of Information Technology, 2018

A new method for research the innovation processes in the service sector is suggested to provide a quantitative basis for measuring various aspects of innovation and to investigate a number of factors that may affect innovation in the banking services sector. Based on the conducted survey three separate components are calculated and further integrated into the Bank Innovation Index. Banks were compared on their innovative profiles input, process, output using the Spearman rank correlation.

International Journal of Financial Services Management, 2006

Sustained competitive advantage depends heavily on the ability of organisations to internalise the benefits of innovative activities. While the vital importance of innovation in today's competitive climate has been widely proclaimed, our understanding of innovative behaviour in service organisations is not yet fully developed. This article documents an interpretative approach (based on archival research and semi-structured interviews) of the main drivers of change in organisational function (process) and access to financial markets (service or product) in UK commercial banking. As a result, research in this article contributes the understanding of innovation in service organisations by exploring past and present perceptions of banks' senior managers and management consultants on the importance and factors stimulating and constraining the adoption of new technology in financial intermediaries.

Recent trends in Management and Commerce, 2023

As proven by both private and public banks, IT-enabled innovation has had a substantial influence on a range of industries, including banking. These financial institutions value innovation and have achieved success as a consequence of technical breakthroughs. The increased competitiveness has compelled all players to act more rapidly. As a result, public sector banks have experienced substantial transformations, and consumers are now confronted with a slew of new options. These banks, which previously depended on traditional methods, are now proactively getting out to the public through billboards, FM radio, and other media outlets. In addition, endorsements from famous people are becoming more common in government entities. The widespread usage of basic banking processes has increased banks' need to innovate. Client satisfaction increases as a consequence in both public and private banks. The study's purpose is to investigate how new technology effects customer satisfaction in Bhopal's public and commercial banks. Customer data obtained from these banks was reviewed, with substantial results. In terms of innovative successes, private banks outscored state banks, according to the poll. Rising banking rivalry is widely considered to have had an immediate influence on how financial institutions prioritize customer-oriented operations and define company goals. Considering the significance of technology and innovation in the modern economy for strategic management, business development, and economic success, new approaches to understanding the relationship among technological innovation and financial services are critical. These unique strategies are required for gaining an advantage over the competition. With this in mind, the goal of this study is to investigate the basic implications of technological innovation on financial services at the bank's location level, specifically through an examination of customer-facing staff input. According to the findings, information and communication technology is critical to the sector's performance. The paper also examines the empirical study's practical implications, strengths, and limitations.

2011

Sustained competitive advantage depends heavily on the ability of organisations to internalise the benefits of innovative activities. While the vital importance of innovation in today’s competitive climate has been widely proclaimed, our understanding of innovative behaviour in service organisations is not yet fully developed. This article documents an interpretative approach (based on archival research and semi-structured interviews) of the main drivers of change in organisational function (process) and access to financial markets (service or product) in UK commercial banking. As a result, research in this article contributes the understanding of innovation in service organisations by exploring past and present perceptions of banks ' senior managers and management consultants on the importance and factors stimulating and constraining the adoption of new technology in financial intermediaries. * (Corresponding author)

Qualitative Market Research, 2020

Purpose-Despite the growing scholarly interest in service innovation and its associated benefits for organizations, research into the barriers to developing new services remains scant. In addition, most of these studies have been mainly conducted at the firm level, failing to incorporate macro forces in the industry. To fill this gap, this study aims to investigate major industry trends as well as organizational attributes that affect organizations' capability in designing innovative services. Design/methodology/approach-A qualitative approach was used. In all, 21 semi-structured interviews with senior executives in different banks were conducted to collect data. Data were analyzed through thematic analysis. Findings-The results of this study suggest that privatization, technological shortcomings, legislative inefficiencies and deposit orientation instead of market orientation were major industry trends that affect service innovation. Furthermore, ambiguity in knowledge management regimes, silo mentality and the absence of a collaborative organizational culture, growing need to focus on human capital and risk aversion were the main organizational attributes that should be addressed for effective service innovation. Practical implications-Service innovation is a strategic asset for organizations. To effectively leverage the benefits, managers should have an end-to-end approach toward the subject. The findings of this study would inform managers of different obstacles in the development of new services from an organizational and industry-wide perspective. Based on the outputs of the interviews and a thorough review of the literature, managerial implications are presented. Originality/value-This study is one of the few studies that explores service innovation challenges at both macro and micro levels of analysis, providing a more holistic view of the phenomenon in the context of service organizations.

Excel Publications, 2021

Innovation is more than ever a hot topic among company executives in every country and industry sector. It is common knowledge that it is a key factor for mature industries to remain competitive. We focus on the retail banking sector, examining the particular case of Italian banks, and ask what drives innovation? Although managers are responsible for bringing new products and services to the market, do they utilise a formal process to capture such opportunities for their customers? We compare retail banking with other service and manufacturing industry sectors to identify where innovations are captured. We also interviewed several Italian retail banking executives to compare the results found previously in the literature. Finally, we provide a framework for managers working in retail banking to be aware of where the opportunities for developing new products and services may come from.

International Journal of Bank Marketing, 1995

The issue of distribution of retail financial services has received growing attention in the academic and professional literature and has been hailed as an increasingly important factor in determining whether or not a company competes effectively in its chosen markets. In an increasingly competitive and deregulated environment, superior distribution strategies concerned with how to communicate with, and deliver products to the consumer can provide institutions with significant competitive advantage in the marketplace. In effect distribution provides the basis for differentiation rather than the core service itself. Discusses developments in the distribution of retail banking services in the UK; more particularly, the emergence of home and telephone retail banking delivery systems will be highlighted, with the successful introduction of a telephone banking service by First Direct, a subsidiary of Midland Bank, being used as a case study to explore current developments.

2015

This article analyses theoretical background of innovation and frameworks to guide managers in banking towards a holistic approach for successful innovation management in a highly dynamic and competitive business environment. We aim to provide a holistic viewpoint by eclecticism in review of multiple approaches. With regards to a holistic perspective on innovation management in banking, the paper provides strong foundation to better understanding the dynamics in banking and facilitates exploring of future business opportunities for sustainable competitive advantage in banking, which is particularly significant for this sector.