Incremental Innovation: 7 Small but Sure Steps to Success
In recent years, banks have innovated on products, processes and channel infrastructure to achieve multiple objectives such as raising operational efficiency, improving customer convenience and accelerating business growth.... Any bank seeking to innovate is faced with two choices: Bring in change with a 'big-bang' or innovate in increment. Incremental innovation can be small but significant. For example, the cost of servicing customers comes down significantly in unassisted channels but innovation through personalization of online channels with a human touch, by introducing a remote advisory service for instance, will attract more customers and drive down costs in the bargain. Likewise, better customization of product offers through “right bundling” can improve cross-sales. Collaboration with customers can not only throw up new ideas but also prevent banks from going wrong with new strategy.
Making Banking Innovation Count
Banking innovation is subject to closer scrutiny during tough times when there are larger hopes pinned on favorable outcomes, and greater concerns regarding resource utilization. Arguably, banks are under unprecedented pressure today from customers demanding more for less..., from regulators expecting tighter compliance and from competitors vying for market share. In order to stay on top of their game, banks need to take innovative action, and make it count. This calls for some lateral thinking, and they may do well looking at innovation in other industries or geographies for inspiration. By leveraging their collective wisdom, techniques and technology at their disposal, they can emerge winners, ready to face a brighter future.
A Compelling Case for Channel Innovation
Banking innovation can work at the product, channel, process and business levels, to name a few. While the relative importance of each is open to debate, there is no denying that channel innovation has impacted banking behavior the most.... Going forward, in all likelihood, it will be a bigger influencer with the self-service culture, taking firm root as Gen-Y starts to dominate markets. While the primary goal of channel innovation strategy is to enhance customer engagement and experience, it can also create collateral advantage by way of improved agility, cost optimization and efficiency. Indeed, it may not be an exaggeration to say that innovation holds the key to survival in the long run.
Offerings Innovation: Make Products Work Harder in Tougher Times
Today, banks need business more than anything else for survival, sustainability and growth. And to garner business, banks must take a host of measures, including creating personalized products, streamlining operations, and leveraging a more agile IT landscape.... However, this must be achieved when resources are limited, competition is fierce and customers are distrustful. Surrounded as they are by tight credit, collapsing companies, bad loans, risk-averse investors, and nearly non-existent margins, this is a challenge indeed. How can a bank get business in a crisis without making costly investments? A bank must approach its objectives from a holistic perspective, taking into account stakeholder requirements, the bank's vision, mission, competition and resources.