Innovation now a priority for retail banks, says report

30 November 2011

The majority of retail banks have increased their investment in innovation during 2011, a new study has revealed.

Research by Efmes showed that financial institutions from Europe, Middle East and Africa, which have been identified as high performers have made innovation much more of a priority with almost two-thirds now having a dedicated department in place to push ideas forward.

The area is recognised as a strategic priority for banks but one which ranks below risk or cost management, the findings revealed.

Patrick Desmarès, secretary general of Efma, said: “The global economy and the banking industry in general are still recovering from the financial crisis of 2008 and 2009 and there are difficult times ahead.

“Banks need to be prepared to prioritise their investment in innovation in order to deliver better products and services, and an improved customer experience.”

Further findings showed that innovation in the online channel has received the most investment while customer loyalty, processes and personalisation have received the least attention.

Almost two-thirds of the banks questioned said they see the threat to the industry from disruptive innovation as high or very high.

By Jim Ottewill

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