Innovation in retail banking 2014 29 October 2014
• Innovation strategy, investment and performance trends
• Threats from innovative new entrants
• Innovation in channels and across channels for customer value
• Best practice innovation approaches being adopted
More and more banks are increasing their investment in innovation, which provides the clearest signal that banks are taking innovation very seriously, either for offensive or defensive reasons. The threat from new entrants to the market remains high and there has been a noticeable increase in the number of start-ups being financed in the last few years, particularly in the area of payments.
There are some signs that more banks are adopting formal innovation practices, and developing their approach to open innovation. However, there are still a large number of banks which do not seem to have good basic practices so there is plenty of room for improvement. Working closely with start-ups, which typically are more innovative than large established players, is becoming more common.