The financial services sector is often characterised as weak on innovation—and banks are no exception. As a result of the industry’s short-term focus, siloed approach to operations and risk-averse culture, only two banks are listed among the world’s 50 most innovative companies. Accenture examines seven key characteristics shared by innovation leaders across industries and explains how banks can use these insights to industrialise their innovation capabilities to stand out from competitors, streamline operations and capture new markets.
The global financial crisis of 2008 has changed the competitive landscape for banks. Customer attitudes and expectations are shifting, and increased transparency and commoditisation are shrinking margins. Organisations can no longer rely on products alone to differentiate themselves.
Restoring profitability will require banks to work more effectively (to unlock new sources of revenue) and more efficiently (to cut costs). Innovation is a proven path to differentiation and competitiveness, but nearly 70 percent of banking executives rate their organisation’s performance in various innovation categories as poor or merely adequate.