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Innovation Readiness 2022: The Innovation Evolution

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  • 24 Pages
  • May 2022
  • Region: Global
  • Arizent
  • ID: 5715053
It’s been over two years since the COVID-19 pandemic began, which in turn fueled a massive explosion of innovation activities across the financial services sector. Early efforts took a shotgun approach toward getting customers and members on board the moving digital train, solving for the abrupt disappearance of the in-person channel. New technologies as well as improvements in existing technologies were all deployed with the hope that some of them would resonate with consumers, but not knowing which ones would fail. The primary measure of success for these innovation initiatives during this early phase was customer satisfaction, as our 2021 report, Rebooting Innovation, showed.

Fast forward to today’s business climate and we’ve discovered that the executive mindset on innovation has changed. More precisely, it has EVOLVED.

Innovation centers of excellence have shot up in popularity, with a wholesale planned expansion of dedicated innovation teams and centers to drive innovation. The rise of M&A and an expanded partner ecosystem as sources of new technology demonstrate that business leaders understand that not all innovation needs to come from within the company. That is, technology partners and even competitors can be excellent sources of innovation for a finan cial institution. Similarly, business leaders have moved away from using customer satisfaction as the primary measure of innovation success, as there is now a greater understanding that innovation resources need to be also spent on internal systems that can’t be measured by customer satisfaction. In short, the world has changed in a little over two years and business leaders have responded by adjusting their innovation strategies.

Table of Contents

  • Introduction
  • Key Findings
  • About this report
  • The larger the organization, the more likely it will favor disruptive innovation
  • Partners are a key source of innovation and commercializing patents can fuel investments
  • Dedicated teams, centers of excellence and M&A grow in favor when it comes to innovation
  • Technology adoption curve placement impacts how institutions innovate
  • Retail banking is a top innovation priority
  • Customer experience as a top innovation driver is losing some steam
  • While the customer remains king, institutions are investing in back end systems
  • Technology investments need to be aligned with innovation priorities
  • Moving customer and transactional data to the cloud is key to driving innovation
  • Hiring and lack of technical expertise can impact the ability to drive innovation
  • Show me the money
  • Customer satisfaction is king, well sort of….
  • Bigger carriers are more likely to document innovation plans
  • Incremental innovation dominates, but not for all
  • Conclusions

Companies Mentioned

  • Sanpaolo
  • Lloyds Banking Group
  • Standard Chartered
  • ING
  • Atom bank
  • Curve