Innovation in retail banking 2013 22 October 2013
This year’s study examines the global innovation trends, identifies how banks can overcome barriers to innovation and improve their innovation capabilities. While the global economy is gradually recovering, banks around the world are still under pressure to find new sources of revenue growth and control their operating costs. Some improvements have been made in customer satisfaction in recent years but at the same time customer expectations are continually changing. Consumers get experiences from other companies, whether it is on their mobile phones or in their physical interactions, which banks are expected to match. Essentially, banks need to run just to keep up.
The evidence from our survey of over 150 banks is that banks are reacting to this challenge by increasing their focus on innovation and increasing their investment in innovation. Two of the main barriers for most, though not all banks, are their legacy systems and their organisation silos. The larger the bank, the more likely these factors are to hinder innovation but of course there are exceptions. Innovation can be used to help banks simplify their business, making it easier to deliver excellent customer service and at the same time reduce or contain costs.