Steering Through Tough Times

Innovation is key for  financial executives to restore
consumer confidence and drive up the market pie. The survey suggests
that nearly 85% rate innovation initiatives as extremely important
while 87% are actively innovating to improve customer relationships and
services. Consumers' trust, loyalty, and confidence can only be gained
through innovation in services, products, and communications. However,
bank profitability will likely remain under pressure due to the
intervention of government who have raised the cost of doing business,
both for consumers and financial sectors.



IT
as an Enabler  

According to findings of the report, nearly 91% of respondents
considered IT infrastructure extremely important for innovation in
financial sector. Key areas where IT as a tool can have the greatest
impact include online and mobile delivery, Internet banking platform,
customer relationship management solutions, and e-banking solutions via
online and mobile platforms.



Paradigm
Shifts

Key developments that are going to change the scenario in a banking
landscape in recovery times include the use of Internet, mobile
technology, new payment options, and changes in how credit is used and
accessed. Cost saving would be the sole goal of such financial
institutions and this could only be achieved using efficient and
effective IT infrastructure and technology tools.



Challenges
Ahead

It is critical to leverage internal capabilities along with accessing
appropriate external resources for partnerships or collaborations, as
financial institutions have started focusing on strategic innovation.
However there are a number of challenges which the financial
institutions needs to delve and overcome such as understanding and
complying with regulatory requirements, creating a culture that may be
adverse to the risk inherent with innovation, and dealing effectively
with the technology infrastructure which is not flexible.  



Conclusion


According to the report, innovation seems to be at the top of mind of
financial executives across vertical and across the globe. An
interesting thing that came out in the report was that more than 52%
considered innovation efforts  as both incremental and
strategic while 48% said it only as incremental. All this augurs well
for organizations who have already prepared a roadmap where they are
committed to maintain momentum in their business, optimize existing
channel distribution, and improve existing infrastructure to achieve
the goals and objectives.