write an essay on innovative banking

• Innovative Banking

Innovation means something new or something which had not been done before. The same goes for banking section as well. There are many sections in banks which are going through or have gone through innovation in recent past. They are no longer restricted to age-old (traditional) methods. Thus, to increase the business avenues and capture the new market banks are resorting to innovation. This term innovative banking is being in use a lot nowadays.

There are many types of banking facilities that the banks have started in recent years. These are the following types of innovative banking used by the banks these days:

Mobile Banking

Mobile banking has been a revolution in the past few years. It has completely changed the way banking systems are working. Thus, it is a system that allows customers to perform many types of financial related services through a smartphone.

These include services like ATM locations, bill payment alert, inter or intrabank payments, bill payments, and many more. So, services are available at the fingertips of every person.

Internet Banking

Internet coverage in the last few years has increased drastically. This service is online banking, web banking, or virtual banking.

Thus, this banking service allows its users to execute and perform any financial transaction or service with the help of the Internet. The banking facilities are provided traditionally at a local bank outlet.

This includes bill payments, a deposit of money, borrowing of money, and other services are all available at one place. This service happens with the use of the Internet facility. In India, ICICI Bank was the first bank to avail it’s customers the facility of Internet banking.

 Learn more about History of Banking in India And World here

Retail and Wholesale Banking

Like other businesses, the banking sector to has evolved into retail and wholesale banking and it is also one of the parts of innovative banking.

Here, retail banking refers to the banking in which the transactions which are done daily by the banks are executed with consumers.

Thus, this is done instead of transactions with other banks or other corporates. The services under this are:

• Personal loans
• Savings accounts
• Checking accounts
• Credit card

Wholesale banking is completely the opposite of retail banking. It refers to the business being conducted with the business and industrial entities.

Thus, in wholesale banking, trading houses, domestic companies, and multinational companies are included. So, there are many services which are included in the wholesale banking and these services are:

• Value-added services
• Fund based services
• Non-fund related services
• Internet banking
• Multinational and offshore banking

Multinational banking is the banks that are present in more than one country. The main services are available in more than one country in these services. Thus, these banks are also called international banks.

The first bank to offer its services outside India was Indian bank in 1946. Currently, Bank of Baroda has the maximum number of the overseas franchise in India.

While under offshore banking, the banking activities are performed in the currencies that are different than the currency of the country in which the bank account is opened.   The banking services in these banks remain the same though. 

Narrow and Universal Banking

Narrow banking includes keeping together the higher part of deposits in risk-free assets like government securities. In India, this is basically in performance to reduce the size of the NPAs.

While commercial, investment, insurance, and many other financial activities combine to form universal banking. Thus, in this practice every product is available.

Practice Questions on Innovative Banking

Q. Out of the following, which was the first bank to start internet banking?

A. Axis bank                 B. Bank of Baroda               C. HDFC                  D. ICICI bank

Answer : D. ICICI bank

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Financial Reforms and Banking Innovation

• Major Effects of International Banking
• Introduction to Financial Reforms
• Services of Banks
• Trends in Banking
• Committees related to Banking Sector Reforms

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• Open access
• Published: 18 June 2021

Financial technology and the future of banking

• Daniel Broby   ORCID: orcid.org/0000-0001-5482-0766 1  

Financial Innovation volume  7 , Article number:  47 ( 2021 ) Cite this article

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This paper presents an analytical framework that describes the business model of banks. It draws on the classical theory of banking and the literature on digital transformation. It provides an explanation for existing trends and, by extending the theory of the banking firm, it illustrates how financial intermediation will be impacted by innovative financial technology applications. It further reviews the options that established banks will have to consider in order to mitigate the threat to their profitability. Deposit taking and lending are considered in the context of the challenge made from shadow banking and the all-digital banks. The paper contributes to an understanding of the future of banking, providing a framework for scholarly empirical investigation. In the discussion, four possible strategies are proposed for market participants, (1) customer retention, (2) customer acquisition, (3) banking as a service and (4) social media payment platforms. It is concluded that, in an increasingly digital world, trust will remain at the core of banking. That said, liquidity transformation will still have an important role to play. The nature of banking and financial services, however, will change dramatically.

Introduction

The bank of the future will have several different manifestations. This paper extends theory to explain the impact of financial technology and the Internet on the nature of banking. It provides an analytical framework for academic investigation, highlighting the trends that are shaping scholarly research into these dynamics. To do this, it re-examines the nature of financial intermediation and transactions. It explains how digital banking will be structurally, as well as physically, different from the banks described in the literature to date. It does this by extending the contribution of Klein ( 1971 ), on the theory of the banking firm. It presents suggested strategies for incumbent, and challenger banks, and how banking as a service and social media payment will reshape the competitive landscape.

The banking industry has been evolving since Banca Monte dei Paschi di Siena opened its doors in 1472. Its leveraged business model has proved very scalable over time, but it is now facing new challenges. Firstly, its book to capital ratios, as documented by Berger et al ( 1995 ), have been consistently falling since 1840. This trend continues as competition has increased. In the past decade, the industry has experienced declines in profitability as measured by return on tangible equity. This is partly the result of falling leverage and fee income and partly due to the net interest margin (connected to traditional lending activity). These trends accelerated following the 2008 financial crisis. At the same time, technology has made banks more competitive. Advances in digital technology are changing the very nature of banking. Banks are now distributing services via mobile technology. A prolonged period of very low interest rates is also having an impact. To sustain their profitability, Brei et al. ( 2020 ) note that many banks have increased their emphasis on fee-generating services.

As Fama ( 1980 ) explains, a bank is an intermediary. The Internet is, however, changing the way financial service providers conduct their role. It is fundamentally changing the nature of the banking. This in turn is changing the nature of banking services, and the way those services are delivered. As a consequence, in order to compete in the changing digital landscape, banks have to adapt. The banks of the future, both incumbents and challengers, need to address liquidity transformation, data, trust, competition, and the digitalization of financial services. Against this backdrop, incumbent banks are focused on reinventing themselves. The challenger banks are, however, starting with a blank canvas. The research questions that these dynamics pose need to be investigated within the context of the theory of banking, hence the need to revise the existing analytical framework.

Banks perform payment and transfer functions for an economy. The Internet can now facilitate and even perform these functions. It is changing the way that transactions are recorded on ledgers and is facilitating both public and private digital currencies. In the past, banks operated in a world of information asymmetry between themselves and their borrowers (clients), but this is changing. This differential gave one bank an advantage over another due to its knowledge about its clients. The digital transformation that financial technology brings reduces this advantage, as this information can be digitally analyzed.

Even the nature of deposits is being transformed. Banks in the future will have to accept deposits and process transactions made in digital form, either Central Bank Digital Currencies (CBDC) or cryptocurrencies. This presents a number of issues: (1) it changes the way financial services will be delivered, (2) it requires a discussion on resilience, security and competition in payments, (3) it provides a building block for better cross border money transfers and (4) it raises the question of private and public issuance of money. Braggion et al ( 2018 ) consider whether these represent a threat to financial stability.

The academic study of banking began with Edgeworth ( 1888 ). He postulated that it is based on probability. In this respect, the nature of the business model depends on the probability that a bank will not be called upon to meet all its liabilities at the same time. This allows banks to lend more than they have in deposits. Because of the resultant mismatch between long term assets and short-term liabilities, a bank’s capital structure is very sensitive to liquidity trade-offs. This is explained by Diamond and Rajan ( 2000 ). They explain that this makes a bank a’relationship lender’. In effect, they suggest a bank is an intermediary that has borrowed from other investors.

Diamond and Rajan ( 2000 ) argue a lender can negotiate repayment obligations and that a bank benefits from its knowledge of the customer. As shall be shown, the new generation of digital challenger banks do not have the same tradeoffs or knowledge of the customer. They operate more like a broker providing a platform for banking services. This suggests that there will be more than one type of bank in the future and several different payment protocols. It also suggests that banks will have to data mine customer information to improve their understanding of a client’s financial needs.

The key focus of Diamond and Rajan ( 2000 ), however, was to position a traditional bank is an intermediary. Gurley and Shaw ( 1956 ) describe how the customer relationship means a bank can borrow funds by way of deposits (liabilities) and subsequently use them to lend or invest (assets). In facilitating this mediation, they provide a service whereby they store money and provide a mechanism to transmit money. With improvements in financial technology, however, money can be stored digitally, lenders and investors can source funds directly over the internet, and money transfer can be done digitally.

A review of financial technology and banking literature is provided by Thakor ( 2020 ). He highlights that financial service companies are now being provided by non-deposit taking contenders. This paper addresses one of the four research questions raised by his review, namely how theories of financial intermediation can be modified to accommodate banks, shadow banks, and non-intermediated solutions.

To be a bank, an entity must be authorized to accept retail deposits. A challenger bank is, therefore, still a bank in the traditional sense. It does not, however, have the costs of a branch network. A peer-to-peer lender, meanwhile, does not have a deposit base and therefore acts more like a broker. This leads to the issue that this paper addresses, namely how the banks of the future will conduct their intermediation.

In order to understand what the bank of the future will look like, it is necessary to understand the nature of the aforementioned intermediation, and the way it is changing. In this respect, there are two key types of intermediation. These are (1) quantitative asset transformation and, (2) brokerage. The latter is a common model adopted by challenger banks. Figure  1 depicts how these two types of financial intermediation match savers with borrowers. To avoid nuanced distinction between these two types of intermediation, it is common to classify banks by the services they perform. These can be grouped as either private, investment, or commercial banking. The service sub-groupings include payments, settlements, fund management, trading, treasury management, brokerage, and other agency services.

How banks act as intermediaries between lenders and borrowers. This function call also be conducted by intermediaries as brokers, for example by shadow banks. Disintermediation occurs over the internet where peer-to-peer lenders match savers to lenders

Financial technology has the ability to disintermediate the banking sector. The competitive pressures this results in will shape the banks of the future. The channels that will facilitate this are shown in Fig.  2 , namely the Internet and/or mobile devices. Challengers can participate in this by, (1) directly matching borrows with savers over the Internet and, (2) distributing white labels products. The later enables banking as a service and avoids the aforementioned liquidity mismatch.

The strategic options banks have to match lenders with borrowers. The traditional and challenger banks are in the same space, competing for business. The distributed banks use the traditional and challenger banks to white label banking services. These banks compete with payment platforms on social media. The Internet heralds an era of banking as a service

There are also physical changes that are being made in the delivery of services. Bricks and mortar branches are in decline. Mobile banking, or m-banking as Liu et al ( 2020 ) describe it, is an increasingly important distribution channel. Robotics are increasingly being used to automate customer interaction. As explained by Vishnu et al ( 2017 ), these improve efficiency and the quality of execution. They allow for increased oversight and can be built on legacy systems as well as from a blank canvas. Application programming interfaces (APIs) are bringing the same type of functionality to m-banking. They can be used to authorize third party use of banking data. How banks evolve over time is important because, according to the OECD, the activity in the financial sector represents between 20 and 30 percent of developed countries Gross Domestic Product.

In summary, financial technology has evolved to a level where online banks and banking as a service are challenging incumbents and the nature of banking mediation. Banking is rapidly transforming because of changes in such technology. At the same time, the solving of the double spending problem, whereby digital money can be cryptographically protected, has led to the possibility that paper money will become redundant at some point in the future. A theoretical framework is required to understand this evolving landscape. This is discussed next.

The theory of the banking firm: a revision

In financial theory, as eloquently explained by Fama ( 1980 ), banking provides an accounting system for transactions and a portfolio system for the storage of assets. That will not change for the banks of the future. Fama ( 1980 ) explains that their activities, in an unregulated state, fulfil the Modigliani–Miller ( 1959 ) theorem of the irrelevance of the financing decision. In practice, traditional banks compete for deposits through the interest rate they offer. This makes the transactional element dependent on the resulting debits and credits that they process, essentially making banks into bookkeeping entities fulfilling the intermediation function. Since this is done in response to competitive forces, the general equilibrium is a passive one. As such, the banking business model is vulnerable to disruption, particularly by innovation in financial technology.

A bank is an idiosyncratic corporate entity due to its ability to generate credit by leveraging its balance sheet. That balance sheet has assets on one side and liabilities on the other, like any corporate entity. The assets consist of cash, lending, financial and fixed assets. On the other side of the balance sheet are its liabilities, deposits, and debt. In this respect, a bank’s equity and its liabilities are its source of funds, and its assets are its use of funds. This is explained by Klein ( 1971 ), who notes that a bank’s equity W , borrowed funds and its deposits B is equal to its total funds F . This is the same for incumbents and challengers. This can be depicted algebraically if we let incumbents be represented by Φ and challengers represented by Γ:

Klein ( 1971 ) further explains that a bank’s equity is therefore made up of its share capital and unimpaired reserves. The latter are held by a bank to protect the bank’s deposit clients. This part is also mandated by regulation, so as to protect customers and indeed the entire banking system from systemic failure. These protective measures include other prudential requirements to hold cash reserves or other liquid assets. As shall be shown, banking services can be performed over the Internet without these protections. Banking as a service, as this phenomenon known, is expected to increase in the future. This will change the nature of the protection available to clients. It will change the way banks transform assets, explained next.

A bank’s deposits are said to be a function of the proportion of total funds obtained through the issuance of the ith deposit type and its total funds F , represented by α i . Where deposits, represented by Bs , are made in the form of Bs (i  =  1 *s n) , they generate a rate of interest. It follows that Si Bs  =  B . As such,

Therefor it can be said that,

The importance of Eq. 3 is that the balance sheet can be leveraged by the issuance of loans. It should be noted, however, that not all loans are returned to the bank in whole or part. Non-performing loans reduce the asset side of a bank’s balance sheet and act as a constraint on capital, and therefore new lending. Clearly, this is not the case with banking as a service. In that model, loans are brokered. That said, with the traditional model, an advantage of financial technology is that it facilitates the data mining of clients’ accounts. Lending can therefore be more targeted to borrowers that are more likely to repay, thereby reducing non-performing loans. Pari passu, the incumbent bank of the future will therefore have a higher risk-adjusted return on capital. In practice, however, banking as a service will bring greater competition from challengers and possible further erosion of margins. Alternatively, some banks will proactively engage in partnerships and acquisitions to maintain their customer base and address the competition.

A bank must have reserves to meet the demand of customers demanding their deposits back. The amount of these reserves is a key function of banking regulation. The Basel Committee on Banking Supervision mandates a requirement to hold various tiers of capital, so that banks have sufficient reserves to protect depositors. The Committee also imposes a framework for mitigating excessive liquidity risk and maturity transformation, through a set Liquidity Coverage Ratio and Net Stable Funding Ratio.

Recent revisions of theory, because of financial technology advances, have altered our understanding of banking intermediation. This will impact the competitive landscape and therefor shape the nature of the bank of the future. In this respect, the threat to incumbent banks comes from peer-to-peer Internet lending platforms. These perform the brokerage function of financial intermediation without the use of the aforementioned banking balance sheet. Unlike regulated deposit takers, such lending platforms do not create assets and do not perform risk and asset transformation. That said, they are reliant on investors who do not always behave in a counter cyclical way.

Financial technology in banking is not new. It has been used to facilitate electronic markets since the 1980’s. Thakor ( 2020 ) refers to three waves of application of financial innovation in banking. The advent of institutional futures markets and the changing nature of financial contracts fundamentally changed the role of banks. In response to this, academics extended the concept of a bank into an entity that either fulfills the aforementioned functions of a broker or a qualitative asset transformer. In this respect, they connect the providers and users of capital without changing the nature of the transformation of the various claims to that capital. This transformation can be in the form risk transfer or the application of leverage. The nature of trading of financial assets, however, is changing. Price discovery can now be done over the Internet and that is moving liquidity from central marketplaces (like the stock exchange) to decentralized ones.

Alongside these trends, in considering what the bank of the future will look like, it is necessary to understand the unregulated lending market that competes with traditional banks. In this part of the lending market, there has been a rise in shadow banks. The literature on these entities is covered by Adrian and Ashcraft ( 2016 ). Shadow banks have taken substantial market share from the traditional banks. They fulfil the brokerage function of banks, but regulators have only partial oversight of their risk transformation or leverage. The rise of shadow banks has been facilitated by financial technology and the originate to distribute model documented by Bord and Santos ( 2012 ). They use alternative trading systems that function as electronic communication networks. These facilitate dark pools of liquidity whereby buyers and sellers of bonds and securities trade off-exchange. Since the credit crisis of 2008, total broker dealer assets have diverged from banking assets. This illustrates the changed lending environment.

In the disintermediated market, banking as a service providers must rely on their equity and what access to funding they can attract from their online network. Without this they are unable to drive lending growth. To explain this, let I represent the online network. Extending Klein ( 1971 ), further let Ψ represent banking as a service and their total funds by F . This state is depicted as,

Theoretically, it can be shown that,

Shadow banks, and those disintermediators who bypass the banking system, have an advantage in a world where technology is ubiquitous. This becomes more apparent when costs are considered. Buchak et al. ( 2018 ) point out that shadow banks finance their originations almost entirely through securitization and what they term the originate to distribute business model. Diversifying risk in this way is good for individual banks, as banking risks can be transferred away from traditional banking balance sheets to institutional balance sheets. That said, the rise of securitization has introduced systemic risk into the banking sector.

Thus, we can see that the nature of banking capital is changing and at the same time technology is replacing labor. Let A denote the number of transactions per account at a period in time, and C denote the total cost per account per time period of providing the services of the payment mechanism. Klein ( 1971 ) points out that, if capital and labor are assumed to be part of the traditional banking model, it can be observed that,

It can therefore be observed that the total service charge per account at a period in time, represented by S, has a linear and proportional relationship to bank account activity. This is another variable that financial technology can impact. According to Klein ( 1971 ) this can be summed up in the following way,

where d is the basic bank decision variable, the service charge per transaction. Once again, in an automated and digital environment, financial technology greatly reduces d for the challenger banks. Swankie and Broby ( 2019 ) examine the impact of Artificial Intelligence on the evaluation of banking risk and conclude that it improves such variables.

Meanwhile, the traditional banking model can be expressed as a product of the number of accounts, M , and the average size of an account, N . This suggests a banks implicit yield is it rate of interest on deposits adjusted by its operating loss in each time period. This yield is generated by payment and loan services. Let R 1 depict this. These can be expressed as a fraction of total demand deposits. This is depicted by Klein ( 1971 ), if one assumes activity per account is constant, as,

As a result, whether a bank is structured with traditional labor overheads or built digitally, is extremely relevant to its profitability. The capital and labor of tradition banks, depicted as Φ i , is greater than online networks, depicted as I i . As such, the later have an advantage. This can be shown as,

What Klein (1972) failed to highlight is that the banking inherently involves leverage. Diamond and Dybving (1983) show that leverage makes bank susceptible to run on their liquidity. The literature divides these between adverse shock events, as explained by Bernanke et al ( 1996 ) or moral hazard events as explained by Demirgu¨¸c-Kunt and Detragiache ( 2002 ). This leverage builds on the balance sheet mismatch of short-term assets with long term liabilities. As such, capital and liquidity are intrinsically linked to viability and solvency.

The way capital and liquidity are managed is through credit and default management. This is done at a bank level and a supervisory level. The Basel Committee on Banking Supervision applies capital and leverage ratios, and central banks manage interest rates and other counter-cyclical measures. The various iterations of the prudential regulation of banks have moved the microeconomic theory of banking from the modeling of risk to the modeling of imperfect information. As mentioned, shadow and disintermediated services do not fall under this form or prudential regulation.

The relationship between leverage and insolvency risk crucially depends on the degree of banks total funds F and their liability structure L . In this respect, the liability structure of traditional banks is also greater than online networks which do not have the same level of available funds, depicted as,

Diamond and Dybvig ( 1983 ) observe that this liability structure is intimately tied to a traditional bank’s assets. In this respect, a bank’s ability to finance its lending at low cost and its ability to achieve repayment are key to its avoidance of insolvency. Online networks and/or brokers do not have to finance their lending, simply source it. Similarly, as brokers they do not face capital loss in the event of a default. This disintermediates the bank through the use of a peer-to-peer environment. These lenders and borrowers are introduced in digital way over the internet. Regulators have taken notice and the digital broker advantage might not last forever. As a result, the future may well see greater cooperation between these competing parties. This also because banks have valuable operational experience compared to new entrants.

It should also be observed that bank lending is either secured or unsecured. Interest on an unsecured loan is typically higher than the interest on a secured loan. In this respect, incumbent banks have an advantage as their closeness to the customer allows them to better understand the security of the assets. Berger et al ( 2005 ) further differentiate lending into transaction lending, relationship lending and credit scoring.

The evolution of the business model in a digital world

As has been demonstrated, the bank of the future in its various manifestations will be a consequence of the evolution of the current banking business model. There has been considerable scholarly investigation into the uniqueness of this business model, but less so on its changing nature. Song and Thakor ( 2010 ) are helpful in this respect and suggest that there are three aspects to this evolution, namely competition, complementary and co-evolution. Although liquidity transformation is evolving, it remains central to a bank’s role.

All the dynamics mentioned are relevant to the economy. There is considerable evidence, as outlined by Levine ( 2001 ), that market liberalization has a causal impact on economic growth. The impact of technology on productivity should prove positive and enhance the functioning of the domestic financial system. Indeed, market liberalization has already reshaped banking by increasing competition. New fee based ancillary financial services have become widespread, as has the proprietorial use of balance sheets. Risk has been securitized and even packaged into trade-able products.

Challenger banks are developing in a complementary way with the incumbents. The latter have an advantage over new entrants because they have information on their customers. The liquidity insurance model, proposed by Diamond and Dybvig ( 1983 ), explains how such banks have informational advantages over exchange markets. That said, financial technology changes these dynamics. It if facilitating the processing of financial data by third parties, explained in greater detail in the section on Open Banking.

At the same time, financial technology is facilitating banking as a service. This is where financial services are delivered by a broker over the Internet without resort to the balance sheet. This includes roboadvisory asset management, peer to peer lending, and crowd funding. Its growth will be facilitated by Open Banking as it becomes more geographically adopted. Figure  3 illustrates how these business models are disintermediating the traditional banking role and matching burrowers and savers.

The traditional view of banks ecosystem between savers and borrowers, atop the Internet which is matching savers and borrowers directly in a peer-to-peer way. The Klein ( 1971 ) theory of the banking firm does not incorporate the mirrored dynamics, and as such needs to be extended to reflect the digital innovation that impacts both borrowers and severs in a peer-to-peer environment

Meanwhile, the banking sector is co-evolving alongside a shadow banking phenomenon. Lenders and borrowers are interacting, but outside of the banking sector. This is a concern for central banks and banking regulators, as the lending is taking place in an unregulated environment. Shadow banking has grown because of financial technology, market liberalization and excess liquidity in the asset management ecosystem. Pozsar and Singh ( 2011 ) detail the non-bank/bank intersection of shadow banking. They point out that shadow banking results in reverse maturity transformation. Incumbent banks have blurred the distinction between their use of traditional (M2) liabilities and market-based shadow banking (non-M2) liabilities. This impacts the inter-generational transfers that enable a bank to achieve interest rate smoothing.

Securitization has transformed the risk in the banking sector, transferring it to asset management institutions. These include structured investment vehicles, securities lenders, asset backed commercial paper investors, credit focused hedge and money market funds. This in turn has led to greater systemic risk, the result of the nature of the non-traded liabilities of securitized pooling arrangements. This increased risk manifested itself in the 2008 credit crisis.

Commercial pressures are also shaping the banking industry. The drive for cost efficiency has made incumbent banks address their personally costs. Bank branches have been closed as technology has evolved. Branches make it easier to withdraw or transfer deposits and challenger banks are not as easily able to attract new deposits. The banking sector is therefore looking for new point of customer contact, such as supermarkets, post offices and social media platforms. These structural issues are occurring at the same time as the retail high street is also evolving. Banks have had an aggressive roll out of automated telling machines and a reduction in branches and headcount. Online digital transactions have now become the norm in most developed countries.

The financing of banks is also evolving. Traditional banks have tended to fund illiquid assets with short term and unstable liquid liabilities. This is one of the key contributors to the rise to the credit crisis of 2008. The provision of liquidity as a last resort is central to the asset transformation process. In this respect, the banking sector experienced a shock in 2008 in what is termed the credit crisis. The aforementioned liquidity mismatch resulted in the system not being able to absorb all the risks associated with subprime lending. Central banks had to resort to quantitative easing as a result of the failure of overnight funding mechanisms. The image of the entire banking sector was tarnished, and the banks of the future will have to address this.

The future must learn from the mistakes of the past. The structural weakness of the banking business model cannot be solved. That said, the latest Basel rules introduce further risk mitigation, improved leverage ratios and increased levels of capital reserve. Another lesson of the credit crisis was that there should be greater emphasis on risk culture, governance, and oversight. The independence and performance of the board, the experience and the skill set of senior management are now a greater focus of regulators. Internal controls and data analysis are increasingly more robust and efficient, with a greater focus on a banks stable funding ratio.

Meanwhile, the very nature of money is changing. A digital wallet for crypto-currencies fulfills much the same storage and transmission functions of a bank; and crypto-currencies are increasing being used for payment. Meanwhile, in Sweden, stores have the right to refuse cash and the majority of transactions are card based. This move to credit and debit cards, and the solving of the double spending problem, whereby digital money can be crypto-graphically protected, has led to the possibility that paper money could be replaced at some point in the future. Whether this might be by replacement by a CBDC, or decentralized digital offering, is of secondary importance to the requirement of banks to adapt. Whether accommodating crytpo-currencies or CBDC’s, Kou et al. ( 2021 ) recommend that banks keep focused on alternative payment and money transferring technologies.

Central banks also have to adapt. To limit disintermediation, they have to ensure that the economic design of their sponsored digital currencies focus on access for banks, interest payment relative to bank policy rate, banking holding limits and convertibility with bank deposits. All these developments have implications for banks, particularly in respect of funding, the secure storage of deposits and how digital currency interacts with traditional fiat money.

Open banking

Against the backdrop of all these trends and changes, a new dynamic is shaping the future of the banking sector. This is termed Open Banking, already briefly mentioned. This new way of handling banking data protocols introduces a secure way to give financial service companies consensual access to a bank’s customer financial information. Figure  4 illustrates how this works. Although a fairly simple concept, the implications are important for the banking industry. Essentially, a bank customer gives a regulated API permission to securely access his/her banking website. That is then used by a banking as a service entity to make direct payments and/or download financial data in order to provide a solution. It heralds an era of customer centric banking.

How Open Banking operates. The customer generates data by using his bank account. A third party provider is authorized to access that data through an API request. The bank confirms digitally that the customer has authorized the exchange of data and then fulfills the request

Open Banking was a response to the documented inertia around individual’s willingness to change bank accounts. Following the Retail Banking Review in the UK, this was addressed by lawmakers through the European Union’s Payment Services Directive II. The legislation was designed to make it easier to change banks by allowing customers to delegate authority to transfer their financial data to other parties. As a result of this, a whole host of data centric applications were conceived. Open banking adds further momentum to reshaping the future of banking.

Open Banking has a number of quite revolutionary implications. It was started so customers could change banks easily, but it resulted in some secondary considerations which are going to change the future of banking itself. It gives a clear view of bank financing. It allows aggregation of finances in one place. It also allows can give access to attractive offerings by allowing price comparisons. Open Banking API’s build a secure online financial marketplace based on data. They also allow access to a larger market in a faster way but the third-party providers for the new entrants. Open Banking allows developers to build single solutions on an API addressing very specific problems, like for example, a cash flow based credit rating.

Romānova et al. ( 2018 ) undertook a questionnaire on the Payment Services Directive II. The results suggest that Open Banking will promote competitiveness, innovation, and new product development. The initiative is associated with low costs and customer satisfaction, but that some concerns about security, privacy and risk are present. These can be mitigated, to some extent, by secure protocols and layered permission access.

Discussion: strategic options

Faced with these disruptive trends, there are four strategic options for market participants to con- sider. There are (1) a defensive customer retention strategy for incumbents, (2) an aggressive customer acquisition strategy for challenger banks (3) a banking as a service strategy for new entrants, and (4) a payments strategy for social media platforms.

Each of these strategies has to be conducted in a competitive marketplace for money demand by potential customers. Figure  5 illustrates where the first three strategies lie on the tradeoff between money demand and interest rates. The payment strategy can’t be modeled based on the supply of money. In the figure, the market settles at a rate L 2 . The incumbent banks have the capacity to meet the largest supply of these loans. The challenger banks have a constrained function but due to a lower cost base can gain excess rent through higher rates of interest. The peer-to-peer bank as a service brokers must settle for the market rate and a constrained supply offering.

The money demand M by lenders on the y axis. Interest rates on the y axis are labeled as r I and r II . The challenger banks are represented by the line labeled Γ. They have a price and technology advantage and so can lend at higher interest rates. The brokers are represented by the line labeled Ω. They are price takers, accepting the interest rate determined by the market. The same is true for the incumbents, represented by the line labeled Φ but they have a greater market share due to their customer relationships. Note that payments strategy for social media platforms is not shown on this figure as it is not affected by interest rates

Figure  5 illustrates that having a niche strategy is not counterproductive. Liu et al ( 2020 ) found that banks performing niche activities exhibit higher profitability and have lower risk. The syndication market now means that a bank making a loan does not have to be the entity that services it. This means banks in the future can better shape their risk profile and manage their lending books accordingly.

An interesting question for central banks is what the future Deposit Supply function will look like. If all three forms: open banking, traditional banking and challenger banks develop together, will the bank of the future have the same Deposit Supply function? The Klein ( 1971 ) general formulation assumes that deposits are increasing functions of implicit and explicit yields. As such, the very nature of central bank directed monetary policy may have to be revisited, as alluded to in the earlier discussion on digital money.

The client retention strategy (incumbents)

The competitive pressures suggest that incumbent banks need to focus on customer retention. Reichheld and Kenny ( 1990 ) found that the best way to do this was to focus on the retention of branch deposit customers. Obviously, another way is to provide a unique digital experience that matches the challengers.

Incumbent banks have a competitive advantage based on the information they have about their customers. Allen ( 1990 ) argues that where risk aversion is observable, information markets are viable. In other words, both bank and customer benefit from this. The strategic issue for them, therefore, becomes the retention of these customers when faced with greater competition.

Open Banking changes the dynamics of the banking information advantage. Borgogno and Colangelo ( 2020 ) suggest that the access to account (XS2A) rule that it introduced will increase competition and reduce information asymmetry. XS2A requires banks to grant access to bank account data to authorized third payment service providers.

The incumbent banks have a high-cost base and legacy IT systems. This makes it harder for them to migrate to a digital world. There are, however, also benefits from financial technology for the incumbents. These include reduced cost and greater efficiency. Financial technology can also now support platforms that allow incumbent banks to sell NPL’s. These platforms do not require the ownership of assets, they act as consolidators. The use of technology to monitor the transactions make the processing cost efficient. The unique selling point of such platforms is their centralized point of contact which results in a reduction in information asymmetry.

Incumbent banks must adapt a number of areas they got to adapt in terms of their liquidity transformation. They have to adapt the way they handle data. They must get customers to trust them in a digital world and the way that they trust them in a bricks and mortar world. It is no coincidence. When you go into a bank branch that is a great big solid building great big facade and so forth that is done deliberately so that you trust that bank with your deposit.

The risk of having rising non-performing loans needs to be managed, so customer retention should be selective. One of the puzzles in banking is why customers are regularly denied credit, rather than simply being charged a higher price for it. This credit rationing is often alleviated by collateral, but finance theory suggests value is based on the discounted sum of future cash flows. As such, it is conceivable that the bank of the future will use financial technology to provide innovative credit allocation solutions. That said, the dual risks of moral hazard and information asymmetries from the adoption of such solutions must be addressed.

Customer retention is especially important as bank competition is intensifying, as is the digitalization of financial services. Customer retention requires innovation, and that innovation has been moving at a very fast rate. Until now, banks have traditionally been hesitant about technology. More recently, mergers and acquisitions have increased quite substantially, initiated by a need to address actual or perceived weaknesses in financial technology.

The client acquisition strategy (challengers)

As intermediaries, the challenger banks are the same as incumbent banks, but designed from the outset to be digital. This gives them a cost and efficiency advantage. Anagnostopoulos ( 2018 ) suggests that the difference between challenger and traditional banks is that the former address its customers problems more directly. The challenge for such banks is customer acquisition.

Open Banking is a major advantage to challenger banks as it facilitates the changing of accounts. There is widespread dissatisfaction with many incumbent banks. Open Banking makes it easier to change accounts and also easier to get a transaction history on the client.

Customer acquisition can be improved by building trust in a brand. Historically, a bank was physically built in a very robust manner, hence the heavy architecture and grand banking halls. This was done deliberately to engender a sense of confidence in the deposit taking institution. Pure internet banks are not able to do this. As such, they must employ different strategies to convey stability. To do this, some communicate their sustainability credentials, whilst others use generational values-based advertising. Customer acquisition in a banking context is traditionally done by offering more attractive rates of interest. This is illustrated in Fig.  5 by the intersect of traditional banks with the market rate of interest, depicted where the line Γ crosses L 2 . As a result of the relationship with banking yield, teaser rates and introductory rates are common. A customer acquisition strategy has risks, as consumers with good credit can game different challenger banks by frequently changing accounts.

Most customer acquisition, however, is done based on superior service offering. The functionality of challenger banking accounts is often superior to incumbents, largely because the latter are built on legacy databases that have inter-operability issues. Having an open platform of services is a popular customer acquisition technique. The unrestricted provision of third-party products is viewed more favorably than a restricted range of products.

The banking as a service strategy (new entrants)

Banking from a customer’s perspective is the provision of a service. Customers don’t care about the maturity transformation of banking balance sheets. Banking as a service can be performed without recourse to these balance sheets. Banking products are brokered, mostly by new entrants, to individuals as services that can be subscribed to or paid on a fee basis.

There are a number banking as a service solutions including pre-paid and credit cards, lending and leasing. The banking as a service brokers are effectively those that are aggregating services from others using open banking to enable banking as a service.

The rise of banking as a service needs to be understood as these compete directly with traditional banks. As explained, some of these do this through peer-to-peer lending over the internet, others by matching borrows and sellers, conducting mediation as a loan broker. Such entities do not transform assets and do not have banking licenses. They do not have a branch network and often don not have access to deposits. This means that they have no insurance protection and can be subject to interest rate controls.

The new genre of financial technology, banking as a service provider, conduct financial services transformation without access to central bank liquidity. In a distributed digital asset world, the assets are stored on a distributed ledger rather than a traditional banking ledger. Financial technology has automated credit evaluation, savings, investments, insurance, trading, banking payments and risk management. These banking as a service offering are only as secure as the technology on which they are built.

The social media payment strategy (disintermediators and disruptors)

An intermediation bank is a conceptual idea, one created solely on a social networking site. Social media has developed a market for online goods and services. Williams ( 2018 ) estimates that there are 2.46 billion social media users. These all make and receive payments of some kind. They demand security and functionality. Importantly, they have often more clients than most banks. As such, a strategy to monetize the payments infrastructure makes sense.

All social media platforms are rich repositories of data. Such platforms are used to buy and sell things and that requires payments. Some platforms are considering evolving their own digital payment, cutting out the banks as middlemen. These include Facebook’s Diem (formerly Libra), a digital currency, and similar developments at some of the biggest technology companies. The risk with social media payment platform is that there is systemic counter-party protection. Regulators need to address this. One way to do this would be to extend payment service insurance to such platforms.

Social media as a platform moves the payment relationship from a transaction to a customer experience. The ability to use consumer desires in combination with financial data has the potential to deliver a number of new revenue opportunities. These will compete directly with the banks of the future. This will have implications for (1) the money supply, (2) the market share of traditional banks and, (3) the services that payment providers offer.

Further research

Several recommendations for research derive from both the impact of disintermediation and the four proposed strategies that will shape banking in the future. The recommendations and suggestions are based on the mentioned papers and the conclusions drawn from them.

As discussed, the nature of intermediation is changing, and this has implications for the pricing of risk. The role of interest rates in banking will have to be further reviewed. In a decentralized world based on crypto currencies the central banks do not have the same control over the money supply, This suggest the quantity theory of money and the liquidity preference theory need to be revisited. As explained, the Internet reduces much of the friction costs of intermediation. Researchers should ask how this will impact maturity transformation. It is also fair to ask whether at some point in the future there will just be one big bank. This question has already been addressed in the literature but the Internet facilities the possibility. Diamond ( 1984 ) and Ramakrishnan and Thakor ( 1984 ) suggested the answer was due to diversification and its impact on reducing monitoring costs.

Attention should be given by academics to the changing nature of banking risk. How should regulators, for example, address the moral hazard posed by challenger banks with weak balance sheets? What about deposit insurance? Should it be priced to include unregulated entities? Also, what criteria do borrowers use to choose non-banking intermediaries? The changing risk environment also poses two interesting practical questions. What will an online bank run look like, and how can it be averted? How can you establish trust in digital services?

There are also research questions related to the nature of competition. What, for example, will be the nature of cross border competition in a decentralized world? Is the credit rationing that generates competition a static or dynamic phenomena online? What is the value of combining consumer utility with banking services?

Financial intermediaries, like banks, thrive in a world of deficits and surpluses supported by information asymmetries and disconnectedness. The connectivity of the internet changes this dynamic. In this respect, the view of Schumpeter ( 1911 ) on the role of financial intermediaries needs revisiting. Lenders and borrows can be connected peer to peer via the internet.

All the dynamics mentioned change the nature of moral hazard. This needs further investigation. There has been much scholarly research on the intrinsic riskiness of the mismatch between banking assets and liabilities. This mismatch not only results in potential insolvency for a single bank but potentially for the whole system. There has, for example, been much debate on the whether a bank can be too big to fail. As a result of the riskiness of the banking model, the banks of the future will be just a liable to fail as the banks of the past.

This paper presented a revision of the theory of banking in a digital world. In this respect, it built on the work of Klein ( 1971 ). It provided an overview of the changing nature of banking intermediation, a result of the Internet and new digital business models. It presented the traditional academic view of banking and how it is evolving. It showed how this is adapted to explain digital driven disintermediation.

It was shown that the banking industry is facing several documented challenges. Risk is being taken of balance sheet, securitized, and brokered. Financial technology is digitalizing service delivery. At the same time, the very nature of intermediation is being changed due to digital currency. It is argued that the bank of the future not only has to face these competitive issues, but that technology will enhance the delivery of banking services and reduce the cost of their delivery.

The paper further presented the importance of the Open Banking revolution and how that facilitates banking as a service. Open Banking is increasing client churn and driving banking as a service. That in turn is changing the way products are delivered.

Four strategies were proposed to navigate the evolving competitive landscape. These are for incumbents to address customer retention; for challengers to peruse a low-cost digital experience; for niche players to provide banking as a service; and for social media platforms to develop payment platforms. In all these scenarios, the banks of the future will have to have digital strategies for both payments and service delivery.

It was shown that both incumbents and challengers are dependent on capital availability and borrowers credit concerns. Nothing has changed in that respect. The risks remain credit and default risk. What is clear, however, is the bank has become intrinsically linked with technology. The Internet is changing the nature of mediation. It is allowing peer to peer matching of borrowers and savers. It is facilitating new payment protocols and digital currencies. Banks need to evolve and adapt to accommodate these. Most of these questions are empirical in nature. The aim of this paper, however, was to demonstrate that an understanding of the banking model is a prerequisite to understanding how to address these and how to develop hypotheses connected with them.

In conclusion, financial technology is changing the future of banking and the way banks intermediate. It is facilitating digital money and the online transmission of financial assets. It is making banks more customer enteric and more competitive. Scholarly investigation into banking has to adapt. That said, whatever the future, trust will remain at the core of banking. Similarly, deposits and lending will continue to attract regulatory oversight.

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Abel, the Destitute Norwegian Who Gave His Name to the ‘Nobel’ in Mathematics

Is the self-driving car the new big brother, openmind books, scientific anniversaries, gender diversity: a competitive advantage for companies, featured author, latest book, innovation for the 21st century banking industry.

This book, Innovation: Perspectives for the 21st Century , is the third in a series of annual publications by the BBVA Group. The motivation behind these publications is to publish expert knowledge on the key issues shaping the future course of the 21st century and relay this knowledge to society. To this end, we seek out leading researchers and creative minds from around the world and ask them to address rigorously and objectively the latest developments in knowledge and the ongoing debates on research and artistic creation in their own fields, using a language and approach that non-specialised readers can understand.

The first book in the series, Frontiers of Knowledge, was published in connection with the institution of the Frontiers of Knowledge Awards granted by the BBVA Foundation. It focused on recent breakthroughs and key challenges in each of the eight award categories: biomedicine; ecology and conservation biology; climate change; information and communication technologies; economics, finance and business management; development cooperation; and the contemporary arts.

The second book offered a comprehensive overview of the complex phenomenon of globalisation, which today deeply affects every aspect of people’s lives.

In order to give the collection a sense of continuity, we have chosen innovation as the central theme of this third book. It was chosen for two main reasons: the first was the decisive importance of innovation as the most powerful tool for stimulating economic growth and improving human standards of living in the long term. This has been the case throughout history, but in these modern times, when science and technology are advancing at a mind-boggling speed, the possibilities for innovation are truly infinite. Moreover, the great challenges facing the human race today—inequality and poverty, education and health care, climate change and the environment—have made innovation more necessary than ever. Our economy and our society require massive doses of innovation in order to make a widespread improvement in the standards of living of nearly 7 billion people (the number continues to increase) compatible with the preservation of the natural environment for future generations.

The second reason for choosing this theme is that it is consistent with BBVA’s corporate culture. Our group’s commitment to the creation and dissemination of knowledge ties in directly with the vision that guides every aspect of our activity: “BBVA, working towards a better future for people”. People are paramount in our work, and the work we do for people is supported by two other pillars of our culture and strategy: principles and innovation.

BBVA’s principles can be summed up in the belief that ethics are not only desirable but also profitable. Acting in accordance with strong values of honesty, integrity and transparency is essential for establishing a close and lasting relationship of trust with all our stakeholders: our shareholders, suppliers, regulators and, above all, our employees and our customers.

This ethical commitment extends to all the societies in which we operate and to society as a whole because we believe that economic development and social stability are the keys to ensuring BBVA’s continuous, profitable growth . For this reason, BBVA is actively involved in a variety of social projects, with a particular focus on promoting education and knowledge. This is the context that has inspired the publication of these books as well as a host of other initiatives, such as the Frontiers of Knowledge Awards and the different activities organised by the BBVA Foundation, in addition to ambitious educational programmes launched by the bank in every country in which we have a presence.

However, although these actions are undeniably important, at BBVA we believe we make our greatest contribution to improving people’s lives through diligently performing our daily activity. The banking industry, and the financial industry in general, carry out tasks essential to people’s everyday lives and to economic development and social stability. BBVA strives to offer its customers a wider and better range of solutions each day, and to make these solutions available to more and more people. Innovation is a vital tool; with it, our daily efforts can achieve the best results, and BBVA can become, as we want it to be, the best universal bank worldwide—in other words, the bank that offers the best and most varied solutions for people and for companies.

I will return to this later, but first I would like to say that the undertaking of publishing these books over the past three years has been an extremely gratifying experience. Each year we have been privileged to work with some of the world’s leading experts on truly fascinating subjects. The opportunity to interact with them and their ideas has enriched us all.

This year, again, I am very proud of the calibre of the authors who kindly agreed to participate in our project. The book boasts texts written by a select group of the world’s best and most prestigious experts in their respective fields. Some are repeating the experience—like Professor Rosenberg, who contributed a magnificent article on globalisation to last year’s publication—which constituted a great honour and show of support for our project. Others have collaborated with BBVA on different innovation projects, or represent institutions with which we have signed agreements or established partnerships in this field. And all have made valuable contributions that give us a glimpse of the “state-of-the-art” in innovation.1

I wish to express my gratitude and that of the entire BBVA Group to all the authors for participating in this book entitled Innovation: Perspectives for the 21st Century. On reading it, I trust that all of you will find a rich, varied and thought-provoking discussion of innovation–a complex phenomenon of paramount importance for the society and economy of the 21st century.

An open, pluralistic view of innovation

Innovation is extremely hard to define. Schumpeter, the great economist who positioned innovation at the centre of the economic debate, made a distinction between invention, defined as the manifestation of a new idea or a previously unknown fact, and innovation, the ability to successfully apply that idea in practice (Schumpeter, 1934). Thus, innovation can be very loosely defined as “a change in the thought process for doing something, or the useful application of new inventions or discoveries” (McKeown, 2008).

Working on the premise of these general ideas, innovation has been analysed in countless contexts and from very different perspectives—always associated with “positive change”—in such disparate fields as technology, economics, business, sociology, the arts or the multiple branches of engineering.

Schumpeter supplied us with a definition of economic innovation which lists the different forms that innovation can take:

• the introduction of a new good or service;
• the introduction of a new method of production;
• the opening of a new market;
• the conquest of a new supply source of raw materials or semi-manufactured goods;
• the implementation of a new organisation in any industry.

The importance of innovation in the field of economics has even given rise to a discipline known as Neo-Schumpeterian Economics, which views all economic development as the result of innovation (see, for example, Freeman, 1982).

Every innovation is the result of a process in which the idea for a possible practical application of an invention is first posited and subsequently developed until it is ready to be introduced into the market. This is why economic and business texts dealing with innovation are just as concerned with the “sources of innovation” and the processes that encourage the generation of potentially useful ideas as they are with the best mechanisms, structures or incentives for transforming those ideas into goods and services that can effectively create value on the market.

The connection between science, technology and innovation, the relationship between academic research and companies, public policy and the role of the market, government and corporate structures, business management in the area of innovation—all of these subjects have been the focus of special attention in the literature on innovation. This diversity of themes and their complexity explain both the importance and the difficulty of developing a Theory of Innovation (see Nelson and Winter, 1977).

A wide range of scholarly approaches to the concept of innovation is documented in Fagerberg (2004), which I recommend to interested readers as a helpful reference for becoming familiar with the prolific and varied bibliography on innovation.

Given the diversity of approaches, aspects and ramifications of innovation and its practical applications, in this book we have chosen to offer a very wide spectrum of articles addressing the most relevant aspects of innovation, all written by authors at the very top of their respective fields.

The first segment of essays, which provide crucial insights for understanding innovation, focuses on its deepest roots. Sandy Pentland traces the roots of creativity—and, by extension, innovation—back to their source in biology, and shows how communication and interaction among the members of each species, including (of course) humans, are essential for development. Sander van der Leeuw points out that the cognitive abilities of the human brain do not seem to have changed in the last 50,000 years; however, thanks to cultural elements (in other words, the experience of learning to exploit those abilities to the fullest), combined with advances in information and communications, the human species still has plenty of room for improvement in terms of managing its natural environment, and that improvement is made possible by innovation.

The second segment of essays focuses on the institutional aspects of innovation. Nathan Rosenberg discusses the complex relationship between science and technology. The traditional view is that science “leads” and technology “follows”, but Professor Rosenberg points out that technology is much more capable of “explaining” scientific progress than we have been led to believe. Hiroyuki Itami underscores the role that organisations (corporate, government, or non-profit) play in knowledge accumulation mechanisms, which are vital for innovation, while Alfonso Gambardella focuses on how market mechanisms can encourage innovation—mechanisms that are primarily fuelled by the utilisation of that accumulated knowledge.

Francisco Louça , on the other hand, demonstrates the importance of the intricate network of cultural values, social interactions and institutions of each society for understanding innovation processes, and discusses how the match or mismatch between socio-institutional systems and the degree of techno-economic development in each period determine the long or Kondratiev waves of economic growth and recession. Based on this reasoning, the current crisis can be chalked up to the inability of economic structures, institutions, regulations and social values to keep pace with the technological revolution we are experiencing.

David Mowery’s essay offers an analysis of the US National Innovation System over more than a century and concludes that its results have largely depended on the decisions made by private companies. For this reason, public innovation policies should remain consistent over time and seek the approval and support of the private sector.

Using data compiled by European economists, Edward Lorenz and Bengt-Åke Lundvall empirically prove that the structural traits of economies, like education systems and labour market structures, have a significant impact on creativity, and therefore on innovation.

The third section of essays examines innovation from a “micro” perspective, exploring how innovations are generated and what plans and mechanisms should be introduced in organisations to generate and disseminate ideas and, above all, to turn those ideas into innovative goods and services on the market.

Alice Lam analyses the organisational aspects of the innovation process and points out the need to cultivate the learning and knowledge-building capacity of human resources, but also to design flexible organisations that can adapt to new technologies and processes.

In a revision of the conventional “producer-centred” approach to innovation analysis, Eric von Hippel reveals how users have become an important source of innovation thanks to advances in computer science and improved connectivity. Consequently, it is essential for companies to maintain a constant dialogue with users and devise mechanisms for working with them and making the most of their abilities.

Frank Moss describes the key cultural aspects of the MIT Media Lab’s “research style”, one of which is the creation of an environment of creative freedom that encourages people to ask bold questions, where failure is perfectly acceptable and where learning is an integral part of the creative process (learning by doing).

The essay written by Curtis Carlson illustrates the “best practices” for innovation developed at the Stanford Research Institute, designed to improve the odds of success for the innovative efforts of organisations.

Harry West focuses on “radical innovation” and outlines the principal elements of Continuum’s process for designing and developing this type of innovation, which is the hardest to standardise but has a much greater impact.

Pascal Soboll offers a complementary perspective—that of the consulting firm Ideo—on how to create an innovative culture in organisations, in such a way that innovation is a priority for all departments rather than the exclusive concern of a small group of “experts”.

This third section concludes with Joaquim Vilá , who highlights the pivotal role that senior executives must play in implementing the changes required for an organisation to achieve a robust innovative culture, and enumerates the fundamental cultural factors that these executives must embrace and preach by example.

The fourth and final segment is dedicated to the application and impact—present and/or future—of innovation in a number of relevant areas, sectors or activities.

Manuel Mira Godinho shows us how innovation is largely responsible for the reduction of extreme poverty in the world over the past several decades, and how it can continue to eradicate this problem in the future. For this to happen, developing nations must acquire policies and tools that will allow them to obtain know-how, compete for R&D funding, and join the global institutional framework, including the necessary policies for handling environmental problems.

As one might expect of a book published by a financial institution, this volume pays special attention to innovation in the service industry, and more specifically in the world of finance. Ian Miles points out that conventional academic publications on innovation have tended to focus on manufacturing industries; yet services represent a very large (and constantly growing) chunk of the economy, and innovation in this sector presents distinctive traits and demands. Developing cross-disciplinary teams is a necessity in the service industry, because innovations in this field usually involve the combination of multiple goods and services, requiring knowledge of technologies, institutions, regulations and social habits as well as of specific types of customers and customer interfaces.

Robert Litan reviews the history of financial innovation in recent decades and concludes that in many cases it has had a positive effect, similar to that achieved by innovation in any other industry, generating goods and services that are better, cheaper and delivered to the buyers more quickly. It is only when financial innovation focuses on the search for mechanisms to increase leveraging to dangerous levels that it has a negative impact, as the recent crisis clearly proves. Therefore, the competent authorities must introduce policies that will prevent the proliferation of “destructive” financial innovations without stifling true, positive financial innovation.

Xavier Vives picks up where Litan leaves off, discussing the role that financial innovation has played in the crisis and reminding us that every major technological change (the railway or the automobile in their day and the internet in ours) has been accompanied by a speculative bubble. Nevertheless, innovation—particularly financial innovation—is essential for economic development. Consequently, we must concentrate our efforts on designing appropriate regulations for the development of financial innovations that will bring private incentives into line with general welfare interests.

Edward Rubin views innovation as a fundamental tool for solving the problem of climate change. If we hope to achieve the international goal of stabilising the levels of greenhouse gases in the atmosphere, we will have to apply technologies that are still being developed or have not even been invented on a massive scale. Public policy should focus on providing the proper incentives.

Takanori Shibata addresses innovation in the medical field, discussing the development of robots that can be used as pets and have proven to be therapeutic. Hugh Herr and Ernesto Martínez-Villalpando explain the tremendous potential of technological innovations for improving the quality of life of the 650 million people around the world who live with some kind of physical or mental disability.

Carlo Ratti and Nashid Nabian show how innovation can generate “intelligent” cities that will provide access to useful information in real time and a platform for collaboration among their inhabitants, radically improving their quality as living and working spaces.

Finally, Tod Machover explores the applications of innovation in music through musical “tools” that allow anyone to make music. This technology has great therapeutic potential; however, on a more general level, it also offers a new model of interaction between people and music that is much more direct and creative.

Innovation in the financial industry

The financial industry is already caught up in an intense, inevitable process of transformation, and the driving forces behind it—technological progress and the social changes it is bringing about—are equally intense and inevitable.

We are currently witnessing the most disruptive technological revolution since the advent of the Industrial Revolution two centuries ago. The difference is that only a small portion of the world took part in the technological progress of the 18th and 19th centuries, while today’s revolution is spreading like wildfire across the entire planet. The reason for this is simple: ours is not a revolution of the tangible (production or transport of goods) but of the intangible. It is a revolution of information. The cost of collecting, storing, processing and sending information is falling rapidly. And just as important—or perhaps even more so—is the fact that these new possibilities are within reach of almost everyone on the planet, thanks to the advent of personal computers, the internet and, increasingly, mobile phones.

This phenomenon is changing people’s habits and behaviour in every area of their lives: the workplace, recreational activities, communication and even interpersonal relationships. Although all companies must deal with these changes in their customers’ lifestyles and in the production and distribution processes, nowhere are their effects more drastic than in the service industry, where the information component carries much more weight (see Miles, 2000).

Banks are at the epicentre of this change. Technological evolution and social changes have a deeper and more direct effect on the financial industry than on most other sectors, for its basic raw materials are information and money. And money, in turn, can dematerialise and transform into accounting entries—in other words, into data that can be stored, processed and transmitted in real time and at costs so low that they are on the verge of disappearing altogether.

It is true that banking has not experienced—up until now—a transformation on a par with that undergone by other information-based sectors, such as the music industry. This is largely owing to the fact that banking has historically been a highly-regulated industry, subject to close scrutiny and control by public authorities. It is also partly due to the exceptionally benign economic and monetary climate of the past several decades, which fuelled the intense growth of financial activity and permitted a relatively high level of inefficiency in the industry, including the survival of a staggering number of financial institutions around the world—or, to put it another way, a severe excess plant capacity.

However, not only is the transformation of the industry inevitable, but it is also picking up speed with each passing day. The primary reason is that the technological revolution is introducing daily new and different ways of doing things, and increasing the potential for cutting costs, while the number of users who resort to non-traditional banking methods continues to grow.

The second reason is that the current crisis is imposing changes in various directions. Banks are perceived as the “culprits” of the recession, and with good reason, for a large number of institutions made some very serious mistakes and chose to ignore the basic principles of banking: prudence, transparency and even integrity (for a more detailed discussion of this issue, see the essays by Edward Litan and Xavier Vives). As a result of these mistakes, many banks have experienced serious difficulties which caused some to go under and others to go through a complete restructuring, generally funded by government bailouts. The colossal amount of taxpayer resources poured into to saving banks has severely tarnished the reputation of financial institutions and the entire industry in the eyes of ordinary citizens. Trust is what gives banks their competitive edge, but over the past several years they have lost much of their customers’ trust, and the trust of society in general.

In addition, the crisis has triggered a process of sweeping changes in banking regulations: borrowing limits, higher capital and reserve requirements, the need for major investments to improve risk and compliance systems, etc. All of this boils down to less revenue and more expenditure—in other words, a reduction in the current and future profitability of financial institutions.

In short, banks must respond to the new demands of their customers and of society, and they must face this challenge with a damaged reputation, lower profits and slow growth in the traditional banking business. This situation calls for a radical transformation: banks must dramatically revise the way they interact with their customers and take a qualitative (not quantitative) leap forward in efficiency.

To a degree, these advances in efficiency will be achieved by a drastic consolidation of the banking sector, which has already begun. But the industry’s true transformation will be effected with the widespread and, above all, intelligent use of technology as part of a sustained process of innovation.

In recent decades, banks have been among the most important users of information and communication technologies, which they have adopted with two primary goals in mind: to cut costs and streamline processes to increase profit margins, and to develop channels of communication other than the conventional branch office.

Yet the original technological platforms used by banks were first introduced several decades ago (in the 1960s and 1970s) and, in most cases, subsequent improvements in functions were developed based on different, more modern technologies, architectures and programs that were later added and/or hooked up to the old system ad hoc.

If it were possible to visualise the complete systems network of an average bank, it would probably resemble nothing so much as a plate of spaghetti: a tangled web of connections linking very different systems that have undergone a long string of changes and partial updates over time.

This situation generates high maintenance costs (for example, it is estimated that banks in the United States devote 80% of their total investment in systems to maintenance and only 20% to new developments). And, most importantly, it quickly becomes untenable given the pace at which new technologies appear and customers’ habits and demands change.

Meanwhile, the internet revolution continues to spread (internet users now account for nearly 30% of the world’s population). And the uses, capabilities and functions of the internet are proliferating day by day. The internet has become the leading source of information, an indispensable pastime (today Europeans spend more time online than they do watching television), and even a forum for personal relations: over 500 million people around the world now use social networks like Facebook which did not even exist until a few years ago.

With each passing day, the internet is gaining importance as a commercial and advertising space and as a place where people on opposite sides of the globe can work together as a team. The web is also the driving force behind the fragmentation of production chains which facilitates the outsourcing of services. In this field, services offered via cloud computing represent a major breakthrough in terms of universal access to data storage and processing at very low cost, and will undoubtedly have far-reaching implications.

Internet usage has also received a tremendous boost from advances in mobile phone technology. Thanks to these new devices, nearly 4.5 billion people (almost three-quarters of the human race) are “online” and have almost ubiquitous access to some level of information services, which has a tremendous effect—yet to be quantified—on productivity.

Mobile phones come equipped with increasingly more powerful and varied functions, functions that will gradually be incorporated into other devices that people can use anywhere, anytime (what has been dubbed the “Internet of Things”).

All this opens up countless windows of opportunity, not only to cut costs but also, and most importantly, to increase revenue.

In the most technologically advanced countries, the challenge is to offer customers a wider array of information-based products and services—and not just of the financial variety—with a cost so nominal it is close to zero, and to do it in the way that is most efficient, rapid and convenient for users.

Technology also offers unprecedented possibilities for tailoring services to meet the users’ needs and demands. To this end, the bank must provide customers with tools that will allow them to participate in the actual process of designing the service they wish to receive.

In developing nations, we find an array of truly historic opportunities: firstly, because the majority of global growth will be concentrated in these countries in the coming decades; and secondly, because only 900 million people in the world are currently bank customers, and there are over 2 billion people—most of whom live in the world’s least developed countries—who do not have access to financial services. This situation exists because, in the conventional model of production and distribution, providing financial services that involve small amounts to a scattered population is not a profitable activity.

However, technology facilitates the introduction of much more efficient models for producing and distributing financial services—for example, through the use of mobile phones. In addition to opening up a huge new market for banks, such a measure would have a tremendously positive effect on the economic development of these countries and facilitate the inclusion of the most disadvantaged collectives.

The technology needed to do all this already exists and is improving every day. A new scenario of competition in the financial industry is taking shape, a stage on which new competitors will soon emerge: companies, many of them internet-based, with high brand awareness and none of the legacies encumbering banks (obsolete systems, costly physical distribution networks, etc.), and with the potential ability to introduce highly efficient models for offering financial services.

The banks that want to compete in this new league will have to undergo a profound transformation, but they do have a few competitive advantages for initiating this change, the most important being the vast amount of information they already possess about their customers. This knowledge must become the foundation for building a new business model, one that is firmly entrenched in technology.

The fundamental tool of this new model will be a much more modern and flexible technological platform capable of absorbing all that information about customers and exploring all possible points of contact with them. In this new model, the existing network of branch offices must be given a complete overhaul: physical distribution networks are only logical if they can offer the users added value and are perfectly integrated in a physical-virtual platform. This platform should allow customers/users to interact with the bank at any time, through any channel, with no interruptions or time lapses, in order to quickly obtain financial or non-financial solutions at minimal cost that are perfectly suited to their specific needs, and which customers can even help to design if they so wish.

Parallel to this technological revolution, banks must also undergo a sweeping organisational and cultural transformation—a transformation that will allow them to restore their reputation by offering transparency in dealings with customers, speed and flexibility in responding to their demands, and the creation of an innovative culture that allows them to find solutions to the new challenges which technology and social changes will continue to pose.

Only those banks which are capable of undertaking this transformation will be able to participate in the financial industry of the 21st century: an industry that will be much more competitive than in the past, but which will also present tremendous opportunities given the possibility of meeting people’s needs much more efficiently and providing universal access to financial services in the world’s least developed regions.

BBVA: An innovative project

At BBVA, long before the current crisis, we have always tried to stay one step ahead of the pack, and we have already started to build this new business model. Our project is upheld by three pillars: principles, people and innovation.

Principles are the cornerstone of our project. At BBVA, our efforts have always been guided by the premise that ethics are not only desirable but also profitable.

Sustaining a corporate culture of prudence, transparency and integrity at any cost is a difficult, time-consuming task, and in some cases it even means sacrificing short-term profits. But in the medium and long term, it is the only way to ensure a project’s sustainability.

Thanks to this culture of principles, BBVA has managed to avoid the pitfalls that many of our competitors have stumbled into in the recent past, and consequently our relative position in the global banking industry has been strengthened.

The number-one priority of our project is people, just as our vision states: “BBVA, working towards a better future for people.” We strive to build stable, long-term relationships with our customers, relationships of trust based on strict ethical conduct and an effort to provide them with the best solutions to meet their needs efficiently, conveniently, and at the best price.

And here is where the third pillar of our project comes in: innovation. Creating a truly groundbreaking, “customer-centric”, rapid, simple and efficient model of interaction, in which the customer receives the best his bank has to offer, requires constant efforts to innovate in both the organisational and cultural arena and in the technological field. I would like to mention just a few of the initiatives we are working on at present.

If we want to offer customised solutions, the first order of business is to know our customers well. At BBVA, like all banks, we have compiled a huge amount of information about our customers. But turning that data into knowledge that can be used to design products that will meet each customer’s unique needs and determine fair prices in accordance with his/her situation means that we must equip ourselves with cutting-edge technology. At BBVA we are leading the way in the application of data-mining and creating intelligent algorithms that will allow us to anticipate the future demands of our customers at any given time.

At BBVA, we have initiated a profound transformation of our distribution network. We are already the world’s most efficient bank, but we continue to work on new branch office configurations that are even more efficient, streamlined and able to provide better service. Another project underway is the design and construction of the best remote channels, equipped with the best and most varied functions, so that customers can interact with BBVA in whatever way is most convenient for them and help us perfect the exact kind of service they prefer. The phone and the computer were followed by the mobile phone, and these will soon be joined by the iPad, television and any other devices to which customers have access.

At BBVA, we are moving towards a distribution model that goes beyond the contemporary concept of multi-channel communication, where the physical office is the heart of the system and the other channels are just useful accessories. We are developing a seamless physical/virtual space where customers can come and go between the branch office and the virtual world as they please and in perfect continuity.

This space will give rise to a new definition of a bank: a company that will offer other non-financial, information-based services which incorporate the users’ own contributions and tap the potential of social networks. And all this will be achieved by taking advantage of the growing ubiquity and functionality of mobile phones and the ability of cloud computing to offer cheap universal access to all kinds of information-related services.

In pursuing this goal, BBVA has an important competitive advantage: a cutting-edge technological platform, a platform that goes far beyond the conventional model of banking systems and is capable of integrating all channels and all sources of information. Thanks to this platform, a customer who accesses the bank by any channel will always find the same BBVA, with the same capacities, and will be able to jump from one channel to another as he/she pleases without a hitch. This platform, which we have been building since 2007, is currently 80% complete and will be fully operational in less than two years.

BBVA has a vision for the industry’s future and has been working for years to make it a reality. But it also has a strategy that combines this vision of the future with the current reality and the prospects of each market and each type of customer.

At BBVA we want to leverage the potential of our model in high-growth markets. For this reason, in addition to our strength in Latin America, we are building a solid franchise in the United States (the world’s largest market), we have a strong presence in China and other Asian countries, and we are in the process of acquiring significant interests in Turkey. In this way, BBVA combines its strength in developed markets with a growing presence in emerging economies, where most of the global economic growth will be concentrated in the coming decades and where a high percentage of the population still does not have access to financial services—which means that the potential for growth in the financial sector is staggering.

Our highly efficient model, firmly rooted in technology, gives us a significant competitive edge over other banks when it comes to meeting the needs of customers in developed nations (highly sophisticated and with intensive technology usage). But it is also essential for developing simple, inexpensive models to provide large sectors of the population with access to banking (as we are already doing in Latin America with mobile phones, agents and bank cards) and to operate in huge markets where we do not have a strong physical presence.

In summary, we have already made tangible progress in our transformation process. However, we have also made other “intangible” advances—or, if not strictly intangible, at least difficult to quantify—derived from what we have learned after all these years of constant work, and these are no less important for the future of our institution.

Firstly, over the course of these years we have refined and perfected our model of innovation. The journey began back in 2004 with the creation of a Corporate Innovation Department, and our initial approach was, in relative terms, more focused on technological possibilities than on the demands of the market and/or the customers.

This centralised department laid the groundwork for evolving towards an innovation “spread” among the different areas of the group. At the same time, the people who are in direct contact with customers have become our principal source of ideas, and technology is now viewed as a tool—an indispensable one—for materialising those ideas.

Meanwhile, at BBVA we have evolved towards a more open model of innovation in which we cooperate with a variety of institutions; in fact, representatives of many of them (MIT, SRI, Continuum, Ideo, etc.) contributed essays to this book. This model also factors in the increasingly important element of customer input, opening up a new space for innovation promoted by the users themselves—which, as Von Hippel points out, is quickly becoming a major source of innovations (Von Hippel, 2005).

However, the most important thing may be that this process of “learning by doing”, the practice of innovation, has brought about a profound cultural change in the people who work for our organisation. Today BBVA has more and better leaders, leaders who are spearheading the transformation of BBVA. And the entire BBVA organisation has embraced a new culture that is open, has a positive attitude towards change, and accepts and encourages flexibility, initiative, accountability, learning and knowledge as values that will give us a decisive competitive edge. This culture also responds to the growing demands and high standards of society with solid ethical principles, transparency and good governance as the keys to earning and maintaining the trust of our customers.

In short, at BBVA we have gone from a traditional corporate culture, with elements inherited from a time when banking was a semi-official, micromanaged industry, to a culture that will allow us to achieve our ambition, which is nothing less than to lead the transformation of the financial industry in the 21st century.

The end goal of this transformation is a new financial system, capable of stimulating growth and sustainable development and of offering more useful, high-quality solutions to meet the needs of more people around the world.

The force that fuels this transformation can only be the thirst for knowledge. This is the driving force behind the project of the BBVA Group, and the publication of this book was inspired by our desire to express and share that motivation.

Bibliography

Fagerberg, J. (2004), “Innovation: a Guide to the Literature”, in J. Fagerberg, D. C. Mowery and R. R. Nelson, The Oxford Handbook of Innovation, London: Oxford University Press, pp. 1-26.

Freeman, C. (1982), The Economics of Industrial Innovation, London: Frances Pinter.

McKeown, M. (2008), The Truth About Innovation. London: Prentice Hall.

Miles, I. (2000), “Services Innovation: Coming of Age in the Knowledge-Based Economy”, International Journal of Innovation Management 14(4), pp. 371-389.

Nelson, R., and S. Winter (1977), “In Search of a Useful Theory of Innovation”, Research Policy 6(1), pp. 36-76.

Schumpeter, J. (1934), The Theory of Economic Development. Boston, MA: Harvard University Press.

Von Hippel, E. (2005), Democratizing Innovation, Cambridge, MA: The MIT Press

1 Here I would like to offer a special tribute to the memory of Professor Chris Freeman of the University of Sussex, one of the pre-eminent contemporary experts on economic cycles and the economics of innovation. His untimely passing this summer precluded the possibility of recruiting him for this project, in which a number of his colleagues, collaborators and disciples have participated.

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8 Banking Innovation Trends to Elevate Your Business

February 20, 2024

There are profound changes underway in the new era of banking innovation , primarily marked by the emergence of cutting-edge technologies like generative AI and blockchain. These innovations are reshaping every aspect of banking, from customer experiences and overhauling payment solutions to strengthening cybersecurity defenses, creating exciting opportunities for forward-thinking businesses. 

This guide explores the major banking innovation themes, starting with the trend that rules them all and the rise of generative AI. 

1. Rise of Generative AI 

Generative AI is a type of artificial intelligence that can produce content, most commonly through LLMs. While generative AI can be traced back to chatbots created in the 1960s, the technology as it is understood today is still in its infancy. Going forward, we are likely to see improvements in accuracy and reductions in bias and hallucinations, all of which will be game-changers for the precision-reliant banking industry. Expect to see evolutions in Fintech, leveraging generative AI to give consumers more control and increase financial literacy. Generative AI will also likely make waves in back-office task automation, risk management, and more. 

2. Process Automation 

Even though the digital transformation era is solidly underway, many banking processes still rely on manual and repetitive administrative execution. With so much human involvement, tasks such as onboarding new customers, document verification, and processing routine transactions are time-consuming and prone to errors. In this upcoming year, these tasks and many more will be increasingly automated with the help of AI. 

3. Shift in Approach to Staffing

With AI increasingly automating repetitive manual tasks, the role of banking employees will inevitably change. As generative AI does not replace human intelligence, there will be a greater valuation of human insight for tasks AI cannot handle. Banking institutions will place more of a focus on finding the right talent and training existing staff to leverage these new technologies.  

4. Improving the Customer Experience 

Customer experience (CX) is a top priority for businesses across every industry, and banking is no exception. Nowadays, it is crucial that banks provide superior customer experiences, or they risk losing out to the competition. Thanks to advancements in generative AI, banking institutions will be able to improve the customer experience by analyzing every touchpoint and making improvements where friction occurs. Customers are likely to encounter more helpful chatbots, more personalized financial planning solutions, and customized investment strategies. 

5. Evolving Risks

The nature of the risks in the banking industry is constantly evolving. From cybersecurity threats to geopolitical turmoil, banks must work diligently to manage the risks. For starters, robust cybersecurity solutions, including intrusion detection systems, data encryption, and employee training, must be developed and maintained as part of the critical infrastructure. Banks need strong capital reserves and diverse portfolios to mitigate the adverse effects of geopolitical risks. 

6. New Regulations 

The regulatory landscape of the banking industry is always shifting, driven by technological innovation and changes in the global economy. To stay up to date and comply with regulations, banks will increasingly turn to Regtech. These technology tools make it easier for financial and insurance institutions to contend with compliance and regulation. Regtech tools include AI, blockchain, and cloud-computing solutions used to streamline and conduct compliance tasks. 

7. Rise in Blockchain Banking 

While exciting generative AI innovations have largely eclipsed recent developments in blockchain, blockchain is still relevant, and it is becoming more common in banking. Blockchain is, of course, essential to the management of digital currencies and cryptocurrencies, an area where banks are continuing to investigate. Blockchain will also become increasingly valuable in streamlining payments, authenticating transactions, establishing trust, and creating smart contracts. 

8. Shift Towards Sustainable Financing 

Across all industries, sustainability is receiving a significant amount of attention, and banking is no exception. To meet the call to action and increasing demand for green initiatives, banks will need to prioritize renewable energy use and reduce their carbon footprint. Additionally, banks will further develop sustainable financial products that allow customers to ensure their money is gathering interest in environmentally and socially responsible ways. 

Embrace the Future of Banking with Encora

Encora has a long history of delivering exceptional software engineering & product engineering services across a range of tech-enabled industries. Encora's team of software engineers is experienced in catalyzing banking evolution with enhanced digital experiences, which is why fast-growing companies partner with Encora to outsource product development and drive growth. We are deeply expert in the various disciplines, tools, and technologies that power the emerging economy, and this is one of the primary reasons that clients choose Encora over the many strategic alternatives that they have. To embrace the future of banking, contact Encora today! 

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FinTech’s rapid growth and its effect on the banking sector

• Original Article
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• Published: 28 November 2022
• Volume 6 , pages 159–176, ( 2022 )

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• Charalampos Basdekis 1 , 2 , 3   na1 ,
• Apostolos Christopoulos 2 , 4   na1 ,
• Ioannis Katsampoxakis   ORCID: orcid.org/0000-0001-8019-6231 5 &
• Aikaterini Vlachou 2   na1  

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FinTech is a New Financial Technology, which provides financial services through innovative information and communication technologies. It is widely accepted that 4th industrial revolution, has affected tremendously the living and working conditions of the societies. The convergence between advanced technologies, entrepreneurship becomes more complex and remarkably computerized. Within such significant changes it is rather expected that banking, has been one of the most challenged sectors. New players like FinTech and Big Tech companies try to capitalize the circumstances, by promoting new consumer patterns to gain market shares. The purpose of this study is to investigate the rapid expansion of FinTech and to evaluate its impact on the Greek banking system. This topic becomes very important nowadays as the number of FinTech companies, which compete with traditional banks on financial products and services, are increasing constantly as digital technology develops. In our study we apply a questionnaire method mainly with closed questions to collect data from the main players. To do this, we use two questionnaires each one for a different sample. The first sample consists of the consumers for financial products and services in the Greek banking sector and the second sample consists of the employees in the Greek banking sector. According to the results, customers of all ages seem to trust the traditional banks more than FinTech companies whereas the level of mobile transactions separately for each consumer, depends on age and education. From the answers of the consumers, it is clear that security is on the top of their worries for using financial services by FinTech companies. On the other hand, the second questionnaire with bank employees shows clearly that educational level is a critical factor for their readiness and response to new technologies.

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Research Problem : Advances in financial technology has brought a new era in the banking sector, introducing challenges, opportunities and risks. The integration of FinTech in the financial system has created global digital technology platforms through which new innovative financial products and services are provided to end customers.

At the same time, traditional banks seem unable to assimilate at the same level these new technologies to deliver products and services to their own customers. In the light of these developments, the question arises as to whether non-banking entities, such as FinTech companies, are capable to lead the competition in such a way and at such a level that banking products and services will no longer be a privilege of the traditional banking sector.

Objective: The evaluation of FinTech growth and the examination of the prospects for the Greek commercial banks, taking into consideration the presence of FinTech companies.

Research Questions :

What types of products and services are provided by FinTech companies and which of them are most attractive to users?

Which are the most important factors influencing the choice of FinTech services?

At what level traditional banks operating in Greece are interested to invest in FinTech?

How FinTech affects employment in the Greek banking sector?

1 Introduction

In recent years, technology has developed rapidly, affecting the way and means in which financial products and services are provided and the way in which consumers are served. Looking in the past, we find Bill Gates, the founder of Microsoft to declare in 1990 that "banking is necessary, banks are not." Thirty years later, this statement seems to be more suitable than ever, especially in Europe [ 19 ]. One can surely say that banks in the future will have many different forms. Brei et al. [ 13 ] point out that in order to maintain their profitability in such an environment, many banks have placed great emphasis on fee-generating services.

It is noteworthy that in the age of advanced technological developments, even the nature of deposits is changing. This prompts Braggion et al. [ 12 ] to investigate whether FinTech expansion could pose a threat for financial stability. Already today banks accept deposits and make transactions in a digital form. However, at the same time, this raises a number of issues, such as resilience, security and competition in payments, the way financial services are provided, the way and security of cross-border money transfers, but also raises the question of private and public money issuance.

According to Arner et al. [ 3 ], the global financial crisis in 2008 proved to be the most critical moment for the strengthening of FinTech financial technology and RegTech regulatory technology, as it stimulated all processes much faster. Indeed, as banks are unable to adopt right away new technologies due to regulatory restrictions [ 25 ] they have to rely at least for some time on obsolete infrastructure technologies. Therefore, advances in technologies are expected to benefit the FinTech companies more. However, according to Philippon [ 45 ], this advantage for FinTech companies does not show reduction in the intermediation costs of the banking sector. At a European level, during the crisis of 2008, the primary concern of ECB was to introduce effective measures, in order to achieve the key objective of financial stability in Eurozone [ 32 ] and thereafter to move towards the introduction and development of a strict and effective regulation framework for the operation of FinTech companies.

The growth of FinTech companies has strengthened more, after the global financial crisis of 2007. Estimates by Finances Online indicate that there are currently more than 12,000 FinTech companies operating worldwide [ 33 ]. The main target of FinTech companies is to offer in a friendly way financial products and services to their customers, in a more efficient, transparent and more automated way [ 21 ]. In another recent study, Broby [ 14 ] concluded that, in an increasingly digital world, trust will remain at the core of banking, which means that transformation of assets will continue to play an important role. However, the nature of banking and financial services is expected to change dramatically. The technological achievements and the importance on R&D expenditures is of paramount importance for every business in or out of the financial sector [ 10 , 30 , 31 ].

Mitra and Karathanasopoulos [ 41 ] examined the impact of financial technology on the relative value of the business in the banking sector. They found that financial technologies affect operational risk and thus companies must take into account the benefits but also the risks from implementing new technological innovations.

Before the introduction of FinTech, entrepreneurs and individuals had to visit a bank branch to apply for small business credit lines, finance leases, mortgages, business loans, credit cards and various other banking services. However, after the introduction of FinTech companies people no longer need to visit a bank to apply for a mortgage loan or a consumer loan. The applications for these products are now offered online through FinTech companies [ 29 ] which are incorporated in various business models.

There is a wide variety of business models that have been established under the banner of Fintech such as, crowdfunding, payments, wealth management, lending, capital markets and insurance services. Every business model is unique but depends on the digital platform in order to reduce operating costs [ 26 ].

The findings of Karsh and Abuhara [ 29 ] show that FinTech companies will grow faster in an environment, where digital technology is available and the penetration of smartphones is high. The empirical results of this study show that the profitability of traditional banks is higher when they collaborate with FinTech companies and when the banks adopt their own financial technology in their business model.

Internationally, the most influential banking system by FinTech is in China. Arner et al. [ 6 ], report that although the structure of the Chinese banking system is inefficient, the penetration of technology is high and thus why we see in China a rapid increase of technology companies like Alibaba, Baidu and Tencent which have a significant impact on financial services [ 36 ]. Although, for at least one decade, those involved with FinTech have attracted the worldwide attention, this issue has not studied widely by academics.

The existing literature shows that although FinTech companies perform like banks, till today they are not regulated like banks.

The main goal of our study is to enlighten aspects of the rapid growth of the financial industry in combination with high technology. At the same time, we aim to clarify the role of FinTech in the financial sector in general, emphasizing though in the banking sector. The results of our study show that generation Z will be the basis for new era emerging in the banking system and their needs and expectations will act a key role. At the same time another important output is the interrelation between FinTech and prudent investments decisions.

The present work is structured as follows: The second section presents the historical development of FinTech and TechFin, the third section deals with the regulation framework of RegTech in Europe and the fourth section refers to the technology used and efficiency of FinTech. In the fifth section, we analyze the technological trends in the banking sector, and in the sixth one the impact of Covid-19 pandemic on FinTech. The methodological framework, the results and the empirical analysis are presented form the seventh to ninth sections while in the last section there are analyzed the conclusions and the discussion regarding the existing literature and the empirical research, giving answers to the research questions that we have identified, suggesting future research perspectives.

2 The historical development of FinTech and TechFin

The term “FinTech” refers to companies that combine the provision of financial services with modern and innovative technologies, although the traditional banking sector has the potential for technological improvement and banks are working in this direction. However, in addition to the banking sector, there are FinTech companies that also offer insurance and financial instruments, either directly or as third parties. FinTech therefore includes companies that provide advance technology to financial service providers. However, it should be noted that there is a huge variation in the legislative and regulatory obligations that apply between banking institutions and FinTech companies [ 21 ].

According to the Financial Stability Board (FSB) [ 23 ], “FinTech is a new financial industry that applies new technology to improve financial activities, including processes, products or even business models”.

The development of FinTech can be divided into three main time periods [ 5 ]: The first is defined from 1866 to 1967 and focuses on the development of the infrastructure of economic globalization. The second refers to the period from 1967 to the outbreak of the international financial crisis and is characterized by the transition to digital technology. A hallmark of this period is the emergence of ATMs (Automated Teller Machine), the foundation of NASDAQ as the world's first digital stock exchange and the World Bank Interbank Financial Telecommunications Company (SWIFT), which is a network of encrypted messages that transmit secure information and instructions. [ 5 ].

FinTech’s most recent achievements during this period are the development of e-banking and e-commerce which resulted in a huge impact of the banking system on everyday human life. [ 5 ].

Currently we face the third era of FinTech, which corresponds to the response of distrust towards the performance of the traditional banking system. This period is characterized by the introduction of cryptocurrencies and the widespread use of smart phones, which allow the execution of several financial services. In fact, in the last decade, Google's digital wallet and Apple Pay have been introduced, which allow their holders to make electronic payments. Arner et al. [ 4 ], consider that in contrast with the more developed economies, in the emerging economies of Asia and Africa, FinTech has begun to develop in recent years. Dorfleitner et al. [ 21 ], point out that FinTech companies can be divided into four main categories, depending on the sector they operate: financing sector, asset management sector, payment transactions and other FinTech (see Fig.  1 ).

Source: Dorfleitner et al. [ 21 ]

Categorization of Fintech firms

In addition to FinTech which act as financial intermediaries there are also data intermediaries TechFin companies which aim to take advantage of their relationship with customers in non-financial services to collect big data in order to provide them with purely financial products and services. TechFin companies create large-scale databases which allows them to offer financial services and become major non-banking players in the sector [ 57 ]. At the same time, FinTech companies may fill the gap or malfunction of the traditional banking system due to regulatory changes and the lack of technological and digital focus on the customer, providing solutions either directly or through the provision of know-how to existing banking providers.

3 The regulatory regime of FinTech firms in Europe

The global financial crisis in 2007 significantly affected financial services and had a catalytic effect on FinTech growth. Although several years have passed it was only recently that legislation and the implementation of some international regulations became mandatory for these companies. Regulatory provisions primarily appeared with the introduction of Regulatory Technology (Reg Tech) which expanded rapidly as a result of the growth of FinTech companies. In turn, the growth of FinTech companies, has attracted the interest of the banking industry, regulators and consumers. The aim of RegTech companies is to provide secure, cost-effective and reliable regulatory solutions through the latest digital technology [ 20 ].

After the crisis, there was an economic gap, mainly due to the loss of confidence in traditional banking institutions. New Regulations through Basel III resulted in increased costs for these institutions due to the new regulatory obligations they had to comply with and their obligation to perform stress tests on a frequent basis.

All these developments have led in the growth of FinTech industry, which competes credit institutions by providing cheap and innovative services. In the field of payment services, the original PSD (Payments Services Directive—PSD) (Directive 2007/64/EU) was strengthened the competition in the European Market and the Simple European Payment Area (SEPA). The PSD2 Directive that followed not only helped to broaden the definition of payment services, but also extended the categories of providers [ 42 ]. Both directives define and extend the information, requirements, rights and obligations of users, as well as payment services that facilitate money transfers [ 56 ]. However, the year 2018 can be said with certainty to be the year that changed the game for traditional banks and this is mainly due to the revised payment directive PSD2.

The main objectives of the PSD2 Directive [ 19 ] are to:

Contribute to the completion of an efficient European payment market.

Contribute to improving fair competition between banking and non-banking providers regarding payment services.

Promote competition in the new economic environment, where new innovative products and services are available.

Offer secure payments.

Reduce customer costs.

According to Navaretti et al. [ 42 ], almost all central banks in the EU have created innovation hubs that provide regulatory sandbox. In Greece, the FinTech Hub, which first appeared in March 2019, aims to enhance the interaction between banks and to facilitate the interaction of FinTech companies with the supervisory mechanism, which aims to enter the industry. Through this hub, it becomes clear that economic innovation is encouraged and implemented and therefore, in some way, a balance between risks and opportunities is ensured. This security has provided some form of support to businesses and individuals who are developing or considering introducing innovative products and services.

Due to the trend of convergence between banks and FinTech, the regulations focus mainly on the services provided and not on the provider and the main goal is to ensure that services and products are offered in full transparency [ 42 ].

To date, it seems that the financial services sector is undergoing a period of radical transformation. As a result, market forces and regulations are leading to the rapid growth of Open Banking. The legal basis is provided by the implementation of the PSD2 Directive creating a single Pan-European payment market. Third party access to customer data held by banks is also regulated and consequently banks cease to have exclusivity in their customer data [ 17 ].

4 Technology and efficiency of FinTech

Numerous analysts argue that although FinTech’s original goal was to eradicate traditional banks from the market by acquiring a dominant position, there are several cases where we can see partnerships between these companies and established traditional banking institutions. In this way, the FinTech companies were able to cope with the difficulties they had in increasing the number of their customers by achieving larger economies of scale.

According to Vives [ 54 ], the use of new technologies has significant implications for the financial sector, such as reducing transaction costs and the availability of new and higher quality products.

One could briefly claim that:

Big Data and the appropriate statistical models can control prospective borrowers more effectively, which is very important for tackling the problem of asymmetric information.

Allows targeted pricing policies as sophisticated interest rate models are used.

Less developed countries have access to financial services but also companies that until now did not have easy access to the banking system.

Through new technologies, the business plan can be implemented and served more efficiently.

5 Technological trends in banking sector

The growth of FinTech through newly established FinTech companies, contributed to the development of RegTech, due to the increased exposure to risk and the need for regulatory compliance. RegTech is considered as an evolving subcategory of FinTech. However, we could also see RegTech as a separate phenomenon, evolving through years (see Fig.  2 ).

Source: Arner et al. [ 2 ]

Stages of RegTech Development.

In general, the periods Reg1 (1967–2008) and Reg2 (2008–2018) are associated with the digitization of the regulatory authority, while the period Reg3 (2018-present) is related to the formation of an appropriate regulatory framework of the digital age.

More specifically, according to Arner et al. [ 2 ], Reg3 is the regulatory term directly linked to the future of RegTech. Concepts such as data dominance and algorithm monitoring now need to be modified as RegTech is used to control how regulations work and who should be subject to those regulations. It's the era marked by the transition from 'Know Your Customer' (KYC) to 'Know Your Data' (KYD). The main obstacle for RegTech is not the technological constraints, but probably the ability of regulators to process and analyze big data.

Therefore, regulators are required to develop systems that allow them to properly monitor and analyze all data. It is certain that the development of regulations has become necessary in order to meet the growing need for cybersecurity.

The technologies with the greatest impact on the FinTech growth are:

Blockchain technology Blockchain allows computer systems located in different places to propose, validate transactions and update the files of a common network at the same time and enhance efficiency [ 44 , 55 ]..

Blockchain information is not stored in a specific location, making malicious attacks more difficult, while the required time for transactions is limited. However, there are also new risks associated with money laundering, inadequate customer protection and tax evasion [ 20 ].

A main benefit of Blockchain technology is Smart Contacts which are based on a purely digital and complex computerized protocol and includes complex calculations, multi-party agreements, various forms of encryption and contributes to the make transactions safer. They also improve the ability of conducting contracts and offer easier confirmation that all obligations have been met, while at the same time, the monitoring time is being eliminated and therefore the contractual monitoring costs are reduced [ 24 ]. However, there is also a belief that Smart Contracts may create new legal requirements [ 9 ].

According to Saripalli [ 48 ], Blockchain can facilitate the decentralization of the last mile delivery channel, by enabling peer-to-peer and cashless transactions even among the unbanked population.

Application Programming Interface The Application Programming Interface (APIs), is the way of communication for two computer applications in a network, using the same communication code [ 56 ]. Through different channels offered by FinTech companies, banks can offer products and services of great flexibility and short time required, thus facilitating innovation [ 17 ].

According to Vishnu et al. [ 53 ], APIs have the same type of functionality in m-banking. They can be used to authorize the use of banking data by third parties. How banks are evolving over the years is important because, according to the OECD, the activities of the financial sector accounts for between 20 and 30% of the GDP of developed countries.

The open banking model is promoted by the Directive PSD2 and is based on APIs. It is an important data source, as it allows access to system’s data. This adds value to the bank, as through access to multiple data sources it receives valuable, difficult and complicated information. APIs are not a new reality in the banking system, as they are already used in the internal communication between the various infrastructure systems (or nodes). APIs are at the heart of the FinTech revolution, as they influence the way products and services are delivered and used. On the other hand, PSD2 allows access to customer information and communication from authorized third parties. According to Omarini [ 43 ], they have been created in order to ensure this compatibility.

Artificial Intelligence Artificial Intelligence (AI) is a bigger concept to create intelligent machines that can simulate human thinking capability and behavior, whereas, machine learning is an application or subset of AI that allows machines to learn from data without being programmed explicitly. Its popularity has increased, mainly due to the large volume of digital data, the growing need for data storage and the great progress that has been made in the algorithms that are applied [ 22 ].

According to Schlinder et al. [ 49 ], the applications of artificial intelligence are diverse and apply, inter alia, to regulatory reporting and data quality, monetary policy and risk analysis, as well as fraud monitoring and detection.

At the central bank level, AI has been integrated into functions that contribute to the identification of microeconomic and macroeconomic indicators [ 49 ], supervision, information management and forecasting and detection of malicious activities [ 22 ].

The benefits of AI application are manifold. In the financial sector, the use of AI and ML techniques increases efficiency, reduces transaction costs, improves service quality, provides smart investment solutions, increases and boosts customer satisfaction. In addition, AI and ML applications allow the institutions that use them to analyze all customer data to which they have access, learning about their preferences and thus developing specific products and services tailored to customer needs, while improving user experience [ 22 ].

Hsu [ 27 ] has developed a stock selection model in the S&P 500 and the FTSE 100, applying machine learning methods to enhance the performance of the benchmark for individual investors. The results of this study suggest that machine learning techniques are well applied in stock markets.

Villar and Khan [ 52 ], using artificial intelligence procedures, demonstrated how Deutsche Bank successfully automated Adverse Media Screening (AMS), speeding up compliance, increasing coverage for negative media, and drastically reducing false positives.

Virtual and Augmented Reality Augmented Reality (AR) and Virtual Reality (VR) are relatively new applications which are based on the principle of interaction. Their cost is still high, as they incorporate desktop, software, headphones, visual content and advertising costs [ 28 ]. According to Goldman Sachs, it is estimated that in 2025 the value of the VR market will amount to 25 billion dollars [ 34 ]. The technological revolution and the evolving customer base, led financial institutions to introduce AR and VR technology in financial services [ 28 ].

Robo Advisors Robo Advisors (RA) platforms provide automated portfolio management services that require minimal or even no human intervention, at a significantly lower cost than traditional consultants [ 47 ]. Automated service consultants or robotic consultants consist a new challenge in the financial services industry, providing investment, banking and insurance products. A well-known RA is the automated investment advisor in the financial sector [ 8 ]. A well-designed RA can be competent, honest and can recommend suitable products to their customers [ 7 ]. However, the motivation of those who plan or develop RA may not be objective as the applied algorithms may not be in favor of the customers’ benefit, but in favor of the providers [ 8 ]. According to Liu et al. [ 37 ], robotics is increasingly being used to automate customer interaction. In addition, robotics improve efficiency and the quality of execution Vishnu et al. [ 53 ].

Cloud Computing Cloud Computing (CC) is the on-demand availability of computer system resources, especially data storage, data sharing and remotely work through internet access. CC offers flexibility in the provision of services and the saving of resources. However, CC like APIs, if not segregated securely and not adequately monitored may cause serious problems [ 54 ].

6 Covid-19 pandemic and banking sector challenges

The Covid-19 pandemic has forced countries around the world to accept a new reality as almost everything in people's daily lives has changed dramatically. This new reality has forced financial institutions to move fast to protect both their employees and their customers, changing their operations and serving customers in new ways.

The coronavirus footprint was visible to both consumers and banks with small businesses in their clientele. The steps taken during the pandemic period will shape many banking activities in the future. What is certain, however, is that the need to "Stay Home" is rapidly accelerating the adoption of digital technologies. This increasing use of digital technology means at the same time reduced dependence on traditional banking branches, thus accelerating the transformation of the banking landscape. It is estimated that in China and Italy, just four weeks after the onset of the coronavirus, the increase in consumer digital choices increased by between 10 and 20%. This gained experience by consumers may change their trading behavior in the long run [ 1 ].

Currently, the implementation of a dynamic and flexible banking model seems inevitable. During the pandemic, the operation of bank branches was temporarily differentiated by incorporating remote work. If this continues on a more permanent basis, it will obviously affect the number of branches currently in operation as well as the number of bank employees. Such a scenario is expected to accelerate the conversion process of traditional banks to virtual banking, where the customer communicates with a specialized consultant via video call in order to conduct banking transactions, thus developing a model that relies heavily on remote consultants [ 1 ]. In the near future, it is very likely that customers will visit the bank branches relatively infrequently, as almost all of the services will be offered through e-banking, mobile banking or virtual banking. Therefore, the challenges are expected to be intense with long-term effects worldwide.

Especially in the case of Greece, the imposition of capital controls in 2015 contributed to the first rapid transformation of banking transactions where the paper currency was replaced by plastic money. The Covid-19 pandemic has pushed this transformation further. As the crisis progresses, we have more and clearer evidence of the impact on the behavior and expectations of customers and businesses but what is certain is that there can be no return to the methods applied before 2019 [ 1 ]. Banks need to develop new strategies taking into account certain internal and external factors. The new trends will definitely include great receptivity to digital channels. After the crisis, employees may be more willing to embrace new working models remotely. On the other hand, banks will have to face a prolonged period of low interest rates and reduced profits with tighter balance sheets and higher operating costs due to the new security measures and for their survival they must move immediately with the right decisions.

Thus, we see that although the global financial crisis of 2008 highlighted the seriousness of systemic risks to banks, in the case of the Covid-19 pandemic the risk was entirely due to factors unrelated to the banking system offering banks the opportunity to highlight their role as a systemic stabilizer. Banks need to learn from the two crises that emerged in 2008 and 2019 respectively and proceed directly to their own digital transformation, while at the same time creating a much higher degree of operational and financial resilience [ 16 ]. During the recent global crisis, banks were considered to be the biggest problem. Today, however, they are considered to be at the heart of problem solving [ 11 ].

7 Sample and hypotheses

Sample In the context of this study, we conducted questionnaires to collect information from the participants selected in our samples and the hypotheses were tested by non-parametric tests. For the purposes of our study, we use two separate groups and samples, constructing two independent questionnaires, oriented to the needs of our study.

The first sample includes consumers/users of banking products and services, regardless of the banking institution that are customers, who answered a questionnaire structured and tailored to their personal transactional needs, habits and desires. The survey was conducted in Greece during the period 28/12/2019–19/02/2020 where 300 questionnaires were distributed to users of which 241 questionnaires received feedback. 10 questionnaires were removed due to omissions in the answers and we finally obtained 231 valid questionnaires, with an effective rate of 77%. The sample consists of 117 women (50.65%) and 114 men (49.35%). The respondents are mainly under the age of 50 (n = 206, 89.15%) and only 42 (18.18%) of the respondents have not graduated from a higher education institution.

The second pool of our study includes the employees of Greek banks. This survey took place in Greece during the period 10/01/2020 to 12/02/2020. In order to investigate the banks employees’ convictions and opinions related to FinTech, we distributed 148 questionnaires to employees from which we received feedback on 120 questionnaires of which 16 questionnaires were deleted due to omissions. Thus, our final sample consists of 104 valid questionnaires, with an effective rate of 70.3%. The second sample of bank employees consists of 64 women (61.54%) and 40 men (38.46%). Participants under the age of 40 constitute the largest percentage (n = 97, 93.20%) while the 87 employees (83.65%) hold at least an undergraduate university degree.

The sampling for distribution and completion of both users’ and bank employees’ questionnaires followed the rules of sampling. In the case of bank employees, the questionnaires were distributed to employees of both bank branches and headquarters services during the time period mentioned above. Regarding the users, the questionnaires were distributed to citizens outside specified metro central stations during the period 28/12/2019 to 19/02/2020. Both questionnaires are listed in the appendix section at the end of the paper, while the empirical results with the corresponding tables are analyzed at the empirical part of the paper.

A common feature of both our questionnaires is that they include three critical questions to test our hypotheses, regarding the demographic characteristics, gender, age and educational level of the respondents.

Hypotheses The users’ questionnaire was constructed by categorizing the questions into four subgroups, which emerged from the research questions and led to the hypotheses testing of the study. A total of twenty questions are included:

The intention to use FinTech services

The perception of the usefulness offered by FinTech services

The trust and the perception of the risk that is integrated in the FinTech services

The preference between FinTech services and services provided by traditional banking branches

On the other hand, bank employees were asked to answer a questionnaire consisting of thirteen questions structured in four subgroups, according to the research needs and the hypotheses testing:

The knowledge they have in new technologies

The degree of adoption of new technologies

The perceived usefulness of new technologies

The perception they have regarding the digital transformation and employment

More specifically, the following hypotheses are considered:

Do users take advantage of the opportunities provided by FinTech companies?

Do they receive sufficient satisfaction from the use of FinTech services?

Do they trust FinTech companies and/or banks for securely making transactions?

Do bank employees have thorough knowledge on new technologies and to what extent they adopt them in their professional environment?

According to bank employees how useful new technologies are for their work and for customers’ satisfaction and whether there may be a negative impact on future employment?

8 Empirical approach

For each variable we examine descriptive statistics average, median, standard deviation and variance and then Kolmogorov Smirnov and Shapiro Wilk tests for normality is applied.

However, as the samples do not follow normal distribution, we apply the non-parametric tests:

Kruskal–Wallis test.

Chi-squared (X^2) test for independence.

rs rank-order Correlation Coefficient (Spearman test).

In our research we are interested to examine which variables from both questionnaires are affected and differentiated by demographic factors, i.e. gender, age and educational level. As the data from both samples do not follow the normal distribution, non-parametric tests at 5% significance level will be tested. When P-value is less than 5%, the examined variable is not independent by each tested demographic factor. Thus, in the next step non -parametric tests follow a single factor (non-parametric dispersion analysis), using Kruskal–Wallis non parametric tests.

We apply the non-parametric Kruskal–Wallis test by ranks, or one-way ANOVA on ranks for testing whether samples originate from the same distribution [ 18 , 35 , 50 ]. This is a way for comparing two or more independent samples of equal or different sizes and tests whether the difference is statistically significant related to their median. It extends the Mann–Whitney U test, which is used for comparing only two groups. The parametric equivalent of the Kruskal–Wallis test is the one-way analysis of variance (ANOVA).

A significant Kruskal–Wallis test indicates that at least one sample stochastically dominates over the other sample. Since it is a non-parametric method, the Kruskal–Wallis test does not assume a normal distribution of the residuals, unlike the analogous one-way analysis of variance. Kruskal–Wallis test is widely used to test small-sized non-parametric models, as it provides exact probabilities for sample sizes even less than about 30 participants. It is indicative that the mechanism behind Kruskal–Wallis test has the possibility to adequately estimate smaller samples, relying on asymptotic approximation for larger sample sizes. Spurrier [ 51 ] published exact probability tables for samples as large as 45 participants, while Meyer and Seaman [ 39 , 40 ] produced exact probability distributions for samples as large as 105 participants. In order to use the Kruskal—Wallis criterion (K-Intependent Samples), we test for the following hypotheses:

The null hypothesis is accepted when P (value) is greater than 0.05, while when P (value) receives price less than 0.05 the null hypothesis is rejected in comparison to the alternative one (H1).

Validity and Reliability Tests Before we applied the proposed conceptual model, we have tested the internal reliability and validity of the scales by calculating the Cronbach alpha coefficient. Cronbach's alpha tests the internal consistency among a set of items. It is a scale reliability measure and its value ranges from 0 to 1. When Cronbach alpha value equals to 0 it implies that scale is perfectly unreliable whereas a value 1 suggests that it is perfectly reliable. When Cronbach alpha value is greater than 0.5 the scale is considered reliable and therefore it is acceptable, whereas if it is over 0.7 the scale is considered very reliable. The Cronbach alpha value depends on the number of the items, the inter-item covariance and the average variance.

The reliability of the Cronbach alpha value for the first questionnaire addressed to users is 0.708 whereas, the reliability of the Cronbach alpha value for the second questionnaire addressed to the employees is 0.796.

9 Empirical results

The following tables (1 and 2) summarize the cases where we compare the variables and we find different medians (p < 0.05) which implies differences in statistical significance.

For the first, users’ questionnaire, we found the following results, in Table 1 :

On the other hand, from the answers of employees in the second questionnaire we find the results presented in Table 2 :

Chi-square Χ 2 testing At this stage the Chi-square (Χ^2) test for independence was performed in order to determine whether the questionnaire’s variables are independent, not correlated to the demographic data of the sample. According to the null hypothesis (H0), the variables are independent between each other (p > 0.05) and the alternative hypothesis (H1), the variables are not independent between each other (p < 0.05) but at least some dependence is present. In the following tables (3–7) we present the cases where null hypothesis is rejected (p < 0.05) implying statistical significance for these relationships, meaning that cases on the other hand with evidence of statistical significance imply that variables are not independent.

Empirical analysis of users’ questionnaire

For the users’ questionnaire we can see the following results in Table 3 :

Chi-square Χ 2 test for independence according to gender

Based on Table 3 which shows some kind of dependency on gender, we observe that the highest value (v = 25.218) is given to the knowledge of digital currencies, such as Bitcoin or Litecoin. The lowest value (v = 9.988) corresponds to the possibility of recommending FinTech services to friends and the users’ families. Therefore, we can suggest that data with dependency on both genders are mainly evident, indicating the intention for using FinTech services. In addition, there is a statistical significant dependence relationship between trust and gender, as well as a comparison between FinTech companies and traditional banking branches, regardless gender.

Chi-square Χ 2 test for independence according to age

In the above Table 4 , we can observe some kind of dependency on the users’ age in relation to their view whether FinTech services provide better services relatively to traditional banks as it receives the highest value (v = 26.402). On the contrary, the lowest price (v = 8.896) corresponds to the question that according to users, funding can be consider as an interesting FinTech area of action. Therefore, the questions which show the highest dependence between age and users’ responses include all the variables which examine the trust and the implied risk for FinTech services as well as the questions that compare FinTech with the traditional banks branches. Another dependence emerging relationship is that between users’ age and their intention for using FinTech services.

Chi-square Χ 2 test for independence according to educational level

Based on the above Table 5 regarding the questions that have some kind of dependence on users’ education level, the highest value (v = 61.441) corresponds to the importance of interaction between the banks and the use of mobile phones. On the other hand, the question related to the availability of services as a selection factor for non-banking providers corresponds to the lowest value (v = 12.939). So far, the main questions with the highest dependence with the users’ educational level are those which examine the intention to use Fintech services.

Empirical analysis of employees’ questionnaire

At this section the analysis focus on the main results derived from the elaboration and test of employees’ questionnaire.

In the above Table 6 , we present only the questions that have some dependence on the gender. The most important results are linked with the existence of dependence between the employees’ gender and the assessment of innovation (ν = 8.821) and the facilitation of daily work with the use of new technologies, such as digitization (ν = 8.894).

Table 7 shows the employees’ responses being affected by their educational level. These responses are related to the degree of effective customer service through the use of technological innovation (ν = 25.301), the readiness to meet the requirements of new technology (ν = 19.548) and the automation of work as a threat to their employment conditions.

In addition, the Chi-square Χ 2 test for independence according to the age of the employees does not show any kind of dependence between the respondents’ answers and their age.

Summing up the above analysis, we find that in the first questionnaire addressed to the users, the demographics related to the age and education level are somewhat dependent with several questions from almost every subgroups of the questionnaire, whereas, compared to the gender it seems to be dependent on specific responses related mainly to the knowledge of FinTech services and trust on FinTech services. Concerning the employees, we can come to the conclusion that demographic characteristics of the sample in relation to the gender and education are dependent on specific responses such as the services innovation, work facility, readiness for using FinTech, effectiveness in serving customers and the impact of new technologies for their employment future. On the contrary, dependence is not present in the relationship between the age of the employees and the responses in the questionnaire.

rs rank-order Spearman Correlation Coefficient

Spearman's correlation coefficient or Spearman's r{s}, is a nonparametric measure of ranking correlation as it tests for the existence of statistical dependence between the rankings of two variables. Alternatively, it can assess how well the relationship between two variables is described using a monotonic function. When there are no repeated data values means that a perfect Spearman correlation of + 1 or − 1 occurs as each of the variables is a perfect monotone function of the other. Intuitively, the Spearman correlation between two variables will be high when observations have a similar (or identical for a correlation of 1) ranking between the two variables, and low when observations have a dissimilar (or fully opposed for a correlation of − 1) ranking between the two variables.

According to the null hypothesis (H0) tests show that variables are not related between each other, meaning that it does not seem to have any kind of dependence (p > 0.05). On the other hand, the alternative hypothesis (H1) tests whether variables are correlated to each other, meaning there is a dependence relationship (p < 0.05) between the examined variables. The following Tables 8 , 9 show that questionnaire responses reject the null hypothesis (H0) accepting the alternative hypothesis (H1) so there is a dependence relationship.

The above Table 8 illustrates the dependence relationship that exists between the demographic data of the sample and the responses from the users’ questionnaire. Thus, the knowledge of adding digital banks/FinTech companies to the financial sector, the knowledge of digital currencies and the question that examines the equivalence of trust between traditional banks and FinTech companies being under the supervision of the European Supervisory Authorities are positively related to users’ gender. Regarding the respondents’ educational level, the questions related to the degree of price, quality and availability of services importance are positively dependent with users’ educational level. On the other hand, we observe a negative correlation between educational level and the questions related with the knowledge of digital currencies, the choice for specific services such as TransferWise, Currency, Peer Transfer, Currencies Direct, the quality and availability of services as non-selecting a non-banking provider.

In terms of age, there is a positive correlation between the responses the users’ age with and the existence of greater trust of users in traditional banks in terms of transactions and personal data management, increased risk undertaken through the use of FinTech services, the speed as a very important factor of selecting a non-banking provider and the increased transactions insurance as an interesting FinTech area of operating. Last but not least, there is a negative dependence relationship between users’ age and the cooperation with a bank through smart phones.

Table 9 shows the dependence between the demographic characteristics of the employees and the corresponding questionnaire.

Regarding the respondents’ gender, there is a positive dependence between the assessment of innovation of traditional banks and the facilitation of the daily work through the use of new technologies and employees’ gender.

As far as the respondents’ age is concerned, there is a negative dependence between their age and the choice of specific services such as Zopa, Lending Club, Funding Circle and Rate Setter.

In terms of employees’ education, the readiness to meet the requirements of new technology is positively dependent to educational level. Finally, the subgroup which is related to digital transformation and employment is not dependent with any of the sample demographics.

Main Implications of Empirical Results Taking into account the empirical surveys conducted at the level of users and bank employees, the main findings that emerged are the following:

The vast majority of users seem to prefer only financial institutions to conduct their banking transactions. According to the literature, FinTech has great potential and is active in various fields. However, the present study shows that users only know payment services as FinTech's area of activity as almost no other activity was reported in the questionnaire responses. Payment services are the activity of most interest to FinTech companies, while the second most important activity is the trading of shares and investments. It is worth noting that most customers who have used payment services have opted for PayPal. This conclusion is also in line with the answers of the bank employees. This is a clear sign that FinTech services in Greece are still at an early stage of development.

Although there are several factors that affect the decision to use FinTech services, the security factor seems to be of paramount importance for the users. In the case of trust, the majority of the respondents indicate that they trust traditional banks more than other non-financial institutions. According to the literature, the main advantages of banks are the regulatory compliance and the confidence between the bank and its customers, which is built over the years.

Regarding the adoption of new technologies by banks, it seems that, admittedly, Greek banks have given the necessary weight to the digital transformation and have made significant investments. The increased pressure on traditional banking institutions to modernize their core business activities is mainly due to the parallel penetration of new technology-oriented companies. From the results of the present study, the digital transformation seems to be a one-way street and will continue to light the way for the technological revolution. Also, the findings of the study show that banks have invested significantly in education, offering employees the opportunity to acquire the necessary skills to meet modern needs and be able to further develop their skills. It seems that Greek banks have largely focused their investment strategy on staff training. Another conclusion is that only a small percentage of bank employees feel fully prepared to face the new technological reality, although based on their educational level, this percentage is expected to be higher soon.

Regarding their future employment, employees seem to be worried and their prevailing position is that for a job that needs mainly automated movements, there is high risk of dismissal. The majority of respondents believe that artificial intelligence and robotics are likely to replace a wide range of professional skills and pose a risk to their personal work and further professional development. The literature shows that artificial intelligence has a very important role as it intervenes and disrupts the activities in tasks traditionally performed by humans. However, its impact on the work is not clear and opinions vary substantially. Professions that require a high degree of creative intelligence, are less likely to be replaced by smart machines in the next decade.

Non-parametric tests show that in matters of trust, security and protection of personal data, the majority of the sample shows a preference for traditional banking institutions and seems to be age-dependence. The importance of interaction with the use of smartphones seems to depend on users’ age and educational level. On the other hand, for bank employees it holds that their educational level clearly plays an important role in the degree of readiness and response to new technologies.

10 Conclusions

FinTech has come to stay is sure to force reform in many areas, mainly intervening technologically and creating competition. In this way there is a view that argues that business activities that have traditionally been vital to the banking sector are threatened. What is certain is that companies that have decoded developments in time and invested significant capital in technology and human resources will be ready for the digital transformation, which will give them a comparative advantage over other companies.

The best way for banks to stay competitive in the new era, is to implement Open Banking, which is both an opportunity and a threat to banking institutions. The threat comes mainly from the limited ability to control the interaction between banks and their customers. However, the most important element that should not be lost in the new economic landscape is the trust of all stakeholders (banks, FinTech, TechFin, regulators and users). A new open platform between banks and FinTech is sure to be an advanced environment for increasing bank innovation. For example, through the Open Banking environment, customers will be able to view all their accounts and transactions independently of the bank provider on a 24-h basis.

It is obvious that in the coming years we will be able to know who the real winner will be, between the FinTech companies and the banking institutions. According to the existing literature, the one that will prevail will be any more investments to succeed in turning it into a customer-centric organization, even if it is a new coalition or collaboration that will consist of both players [ 43 ].

It is accepted that the 4th Industrial Revolution has transformed modern enterprises by causing radical changes in the banking sector. Global banking giants have begun to be challenged by new players, while at the same time FinTech and BigTech are claiming market share, creating major changes in consumer patterns and habits.

The main results of the current study imply that users only know payment services as FinTech's area of activity and prefer to use for their transactions PayPal. It is worth noting that payment services consist the most invested activity for FinTech firms.

Security, trust and protection of privatization seems to be by far the most significant factors affecting users in conducting transactions, using new financial technologies and that is mostly argued by trusting traditional banks more than other non-financial institutions. For their transactions, most of customers use smart phones, whose use depends on users’ age and educational level.

Moreover, banks have invested significantly in education, offering employees the opportunity to acquire the necessary skills to meet modern needs and be able to further develop their skills. However, only a small percentage of bank employees feel fully prepared to face the new technological reality. One equally important conclusion for employees’ part is that they consider themselves in risk of being dismissed due to the automation of many jobs. In addition to the above, for bank employees it holds that their educational level clearly plays an important role in the degree of readiness and response to new technologies.

In conclusion, the present study shows that we must be focused on the new generation that will be the basis for the banking system in the future and those in charge to target the needs and expectations of the "Millennials" while at the same time appropriate investments in technology and knowledge must be planned. Recent literature shows that FinTech companies may look and act like banks, but they are not yet set up as banks. It is also worth mentioning that in cases of pandemics, such as Covid-19, the importance of FinTech is highlighted while financial technology in all areas of activity becomes more important than ever. The coronavirus crisis has helped the banking sector take steps of digital transformation in the short term, something that would otherwise take longer to take place. What is certain is that these new developments will "force" customers to adapt to these unprecedented conditions, while creating new business habits, regardless of age and educational level. Questions such as what is the real relationship between banks and FinTech companies, who is most affected and by whom, are interesting topics for future investigation as well as to repeat the current study after the end of the Covid-19 crisis to compare the results, even expanding the study to incorporate the financial systems of more Member States in the E.U.

The above conclusions must be taken into account by the competent regulatory authorities in order to shield the economy with the necessary institutional framework for the operation of the FinTech companies, as well as the Basel Committee for the reconsideration of Basel regulations.

Data availability

The data that support the findings of this study are available from the corresponding author upon reasonable request.

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Charalampos Basdekis, Apostolos Christopoulos, Ioannis Katsampoxakis, Aikaterini Vlachou—alphabetical order.

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Department of Economics, National & Kapodistrian University of Athens, Athens, Greece

Charalampos Basdekis

Hellenic Open University, Patra, Greece

Charalampos Basdekis, Apostolos Christopoulos & Aikaterini Vlachou

University of West Attica, Egaleo, Greece

Department of Business Administration, University of the Aegean, Chios, Greece

Apostolos Christopoulos

Department of Statistics and Actuarial, Financial Mathematics, University of the Aegean, Samos, Greece

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Digital transformation in banking: how to make the change.

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Vladimir Lugovsky is the Co-Founder of digital product development agency  Akveo  and low-code SaaS startup UI Bakery.

Digital transformation remained an important trend in banking in 2021. Similar to its impact on other business domains, technology is gradually reshaping the financial services industry in every aspect. However, the industry has a long way to go, and banks are still dipping their toes in the digital water, with 27% only launching a digital transformation strategy in 2021.

Meanwhile, customers have changed too. Gen-Z and Millennials expect traditional financial organizations to act in a technology-driven way, like Google or Apple do. As a result, traditional players feel the urge to introduce innovative and competitive digital solutions to ensure long-term market survival. 

What Is Digital Transformation?

Digital transformation in banking is a cultural, organizational and operational change through technologies. In its most basic sense, digital transformation is the transition to digital customer services via the internet. In a broader sense, digital transformation means improvements in a wide range of areas related to offerings, process automation, customer experience, data integration, organizational flexibility and sales.

This technological trend determines the direction the industry is taking, and banks need to consider technological advances in their strategies. The pandemic-driven crisis is only increasing the urgency. According to Gartner, 69% of boards of directors say the pandemic and the economic crisis are accelerating their digital initiatives.

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So how do you start the clock on your digital journey? First, it’s important to determine what effect you expect from digitization. It's not enough to hope for “good things” to happen. Let's get specific: Digital transformation in banking means introducing customer-centricity, integration and inclusivity . With technology, the customer journey gets personal, automated and cohesive within a single ecosystem. 

The ultimate goal of digital transformation is to understand and fulfill customers' needs — e.g., a mobile application becomes a universal tool whether clients need to pay their bills, transfer money online, apply for a loan or receive information at the touch of a button.

This level of convenience helps banks maintain a reliable customer retention strategy, reduce costs associated with attracting new customers, facilitate onboarding and thus increase revenue. 

Preparation

Secondly, you have to be aware of the volume of investments required to achieve the desired results. As said earlier, technology plays a critical role in all business operations. However, their effectiveness depends on how the business uses these technologies. That is why coming up with a clearly articulated strategy is crucial to digital transformation success.

Businesses must correctly assess and manage the risks associated with digital transformation, most notably possible data leakage, unauthorized access to data and other cybersecurity-related risks. Therefore, before drawing up a step-by-step plan for digital transformation, it is necessary to revise current business processes and IT infrastructure across the board. Departmental managers have to analyze the security gaps at the company level and find out how they can be eliminated using digital solutions.

But don’t get me wrong: digital transformation is not solely about the technology itself. While developing and improving customer experience, financial institutions also establish a culture of innovation for employees. Work processes automation implies radical shifts in employee behavior, so the training of employees should be at the top of the digital agenda.

Digital transformation initiatives won’t come cheap. The customer-centric mindset requires constant improvement of technologies. But is there a price tag on innovation? After all, you invest in your organization’s future via robust IT platforms. If you aspire to provide first-rate financial services and outperform competitors, giving a green light is a costly yet necessary decision.

Here are the results you can expect from digital transformation. First, the unprecedented level of convenience, when clients have easy access to easy-to-use mobile applications and services. Second, the connectivity that lets users stay in touch with their bank 24/7. Finally, the innovation that helps bank institutions keep up with digital trends. 

The sector's transformation means that banks are beginning to offer fully digital services, minimize direct interaction with clients and introduce powerful and agile banking IT products and systems. This means bank institutions are becoming technology companies in their own right. The synergy of IT and marketing departments within a bank creates the opportunity to deliver digital products internally and externally.

This level of technological agility, with flexible services, new business models and faster time-to-market is the essence of digital transformation. 

Ultimately, digital strategy initiatives by banks result in:

• Elimination of paperwork.

• Less time spent servicing clients, conducting transactions and settlements.

• Increased productivity.

• Organizational transparency.

• Effective teamwork.

• Lower operational costs.

• Risk reduction in core activities.

• More revenue.

As tech-savvy fintechs enter the market, big banks are beginning to reap the benefits of adopting technology. For instance, Bank of America now receives more deposits via mobile than its brick-and-mortar branches. Banks must use technology to transform products, attract customers, empower employees and optimize operations. Technologies can shape the future only when they permeate all internal and external levels of a bank's activities.

Contrary to common misconceptions, the digital transformation won't make traditional banking institutions go extinct. Instead, it is an opportunity to reimagine financial services, making banks customer-centric, innovation-driven and future-ready.

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Technology and Innovation in Banking/Finance

Introduction.

The rise of Technology and innovation in the banking and finance sector has been a source of both promise and concern. On the one hand, technological advances have enabled banks and financial institutions to provide customers with a faster, safer, and more efficient service. On the other hand, Technology and innovation have also posed several risks to the financial sector’s stability as regulators struggle to keep up with the pace of technological change. This paper will discuss the potential benefits and risks of Technology and innovation in banking and finance and will argue that, while Technology can bring many benefits, it should be managed carefully and with proper oversight to ensure that it does not pose any undue risks to the financial sector.

Technology and innovation have been transforming the banking and finance industry for many years. From the introduction of automated teller machines (ATMs) to the development of online banking, the banking and finance industry has quickly embraced technological advances. With the introduction of new technologies such as artificial intelligence (AI), blockchain, and distributed ledger technology (DLT), the banking and finance industry is undergoing a significant transformation.

Technology has enabled the banking and finance industry to become more efficient and secure. Automation has made it easier to process transactions and manage customer accounts. AI has enabled banks to analyze customer data and make decisions more quickly. Blockchain and DLT have opened up new opportunities for financial transactions, such as decentralized finance (DeFi) and digital currencies. Innovation has also been key to the banking and finance industry. Banks have long been pioneering new products and services to meet the changing needs of their customers. Banks have recently embraced innovations such as contactless payments, mobile banking apps, and digital wallets (Meister, 2022). These innovations have made banking more convenient and accessible for customers.

Technology and innovation have also allowed banks to expand their reach. Banks can now offer services to customers worldwide, regardless of where they are located. This has enabled banks to reach new markets and increase their customer base. Technology and innovation have revolutionized the banking and finance industry. Banks have become more efficient and secure while offering new products and services to customers (Al Kemyani et al., 2022). As Technology continues to evolve, the banking and finance industry will continue to be transformed.

The Benefits of Technology and Innovation in Banking/Finance

One of the main benefits of Technology and innovation in banking and finance is that it has made financial services more accessible to a broader range of customers. Through online banking and mobile apps, customers can now access their accounts and conduct transactions easily, regardless of their geographical location (Jarvis & Han, 2021). This has enabled banks and financial institutions to reach more customers and provide faster and more convenient service.

In addition, technological advances have also enabled banks and financial institutions to reduce costs and increase profits. By introducing automation and other technologies, banks and financial institutions can reduce the need for manual labor and thus reduce their operational costs. This has enabled them to improve their bottom line and increase their profits. Technological advances have enabled banks and financial institutions to improve their security measures and thus protect their customers’ data and the financial system (Jarvis & Han, 2021). Through encryption and other security measures, banks and financial institutions can ensure that their customer’s data is secure and protected from potential cyber threats.

The banking and finance industry has always been at the forefront of technological advances. Technology and innovation have become increasingly crucial for banks and financial institutions in recent years. In today’s competitive market, Technology and innovation are essential for banks and financial institutions to stay competitive and provide better customer services (Jarvis & Han, 2021). The ability to quickly and accurately process customer data, analyze customer behavior and preferences and provide quick and efficient services are all significant benefits of Technology and innovation in banking and finance.

One of the most significant benefits of Technology and innovation in banking and finance is the ability to create a better customer experience. Technology and innovation enable banks and financial institutions to provide customers with more personalized services, such as the ability to access accounts and view statements online easily, as well as the ability to make payments and transfer funds quickly and securely (Jarvis & Han, 2021). In addition, Technology and innovation allow banks and financial institutions to offer more advanced services, such as online banking, mobile banking, and financial planning tools.

Another benefit of Technology and innovation in banking and finance is reducing costs. Banks and financial institutions can use Technology to improve their efficiency, reduce costs associated with manual processes, and streamline processes (Jarvis & Han, 2021). Additionally, Technology and innovation enable banks and financial institutions to access and analyze large amounts of data quickly and accurately, which can help them make better decisions, reduce risks, and improve customer satisfaction.

Finally, Technology and innovation allow banks and financial institutions to keep up with changing industry trends and regulations. By incorporating new technologies and innovations, banks and financial institutions can stay ahead of the competition and ensure that their services remain compliant with the latest regulations and laws. As the financial industry continues to evolve and become more complex, Technology and innovation will become increasingly crucial for banks and financial institutions to stay competitive. Technology and innovation have become essential to the banking and finance industry. They have enabled banks and financial institutions to provide better customer services, reduce costs, and keep up with changing industry trends (Jarvis & Han, 2021). Technology and innovation have revolutionized the banking and finance industry and will continue to do so in the future.

The Risks of Technology and Innovation in Banking/Finance

In the modern world, Technology and innovation play a significant role in banking and finance. Technology and innovation can drive efficiency, reduce costs and enable new services. However, with the ever-evolving landscape of Technology, there are also risks associated with banking and finance that need to be addressed. Technology and innovation bring certain risks that must be managed to ensure the security and reliability of banking and finance services (Utami & De Guzman, 2020). These risks include cyber security threats, data privacy concerns, and new regulations and standards.

Cyber Security Threats

With the increased use of Technology and innovation in banking and finance, the risk of cyber-attacks is significantly increased. Cyber-attacks can take many forms, including malware, phishing, social engineering, and distributed denial of service (DDoS) attacks. These attacks can cause irreparable damage to an organization, including the loss of customer data and the disruption of services. Therefore, organizations need a robust cybersecurity strategy to detect, prevent, and respond to cybersecurity threats.

Data Privacy Concerns

The use of Technology and innovation in banking and finance also brings with it concerns about data privacy. As organizations collect, store, and use customer data, they must ensure that it is secure and protected from unauthorized access. This requires organizations to have robust data privacy policies, procedures, and measures to protect customer data from external threats.

New Regulations and Standards

Finally, the use of Technology and innovation in banking and finance also brings with it the need to adhere to new regulations and standards. These regulations and standards are designed to ensure that organizations comply with relevant laws and regulations and protect customer data (Utami & De Guzman, 2020). Therefore, organizations must be aware of the new regulations and standards and adhere to them.

Mitigating Risks

Organizations can mitigate the risks associated with Technology and innovation by implementing a robust risk management strategy. This strategy should include measures to detect, prevent, and respond to cyber security threats and measures to protect customer data. Additionally, organizations should ensure they are aware of and compliant with the new regulations and standards.

Technology and innovation can bring many benefits to banking and finance, but they also bring certain risks. Therefore, organizations need to be aware of these risks and implement a robust risk management strategy to mitigate them. By doing so, organizations can ensure that their services are secure and reliable. While Technology and innovation in banking and finance can bring many benefits, they can also pose several risks. For example, the rapid pace of technological change means that regulatory bodies often cannot keep up with the changes, leaving banks and financial institutions vulnerable to new and emerging risks (Utami & De Guzman, 2020). In addition, the increased use of automated systems has led to the rise of “algorithmic trading,” which can create new levels of market volatility and potentially destabilize the financial system.

Generally, the increased use of Technology in banking and finance has created new opportunities for fraud and cybercrime. By exploiting vulnerabilities in the systems, criminals can gain access to sensitive customer data and financial information, which could potentially be used to defraud customers and institutions. Technology and innovation in banking and finance can bring many benefits, including increased accessibility, cost savings, and improved security. However, it is also essential to recognize the potential risks that Technology and innovation can pose (Utami & De Guzman, 2020). In order to ensure that the benefits of Technology and innovation are realized without compromising the financial system’s stability, banks and financial institutions must be appropriately regulated and that technological advances are managed carefully.

My Position on the Issue of Technology and Innovation in Banking/Finance

Technology and innovation in banking and finance have become increasingly important in recent years due to the emergence of new digital technologies that have revolutionized the way banks and financial institutions do business. These advances in Technology and innovation have allowed banks and other financial institutions to provide more efficient and cost-effective services to their customers (Dutta, 2020). Additionally, the use of Technology and innovation in banking and finance has opened up new opportunities for consumers and businesses.

Technology and innovation in banking and finance have made it easier for individuals to access and manage their finances. Through online banking, mobile banking apps, and other digital financial tools, customers can quickly check their account balances, transfer funds, and make payments, all from the convenience of their homes. This has made it easier for people to keep track of their finances and stay on top of their budgeting (Dutta, 2020). Furthermore, the use of Technology and innovation in banking and finance has enabled banks and other financial institutions to offer services such as online loans and credit cards that are more tailored to customers’ needs.

Technology and innovation in banking and finance have also made it easier for businesses to manage their finances. Through cloud computing and other digital tools, businesses can now easily access their financial information and manage their accounts from anywhere in the world. Additionally, the use of Technology and innovation in banking and finance has allowed businesses to automate their financial processes, reducing the need for manual labor and saving them time and money (Dutta, 2020). Technology and innovation in banking and finance have also allowed financial institutions to protect their customer’s data better and provide more secure services. By utilizing advanced technologies such as encryption, two-factor authentication, and fraud detection algorithms, banks, and other financial institutions can ensure that their customer’s data is kept safe and secure (Dutta, 2020). This gives customers the peace of mind that their financial information is not accessible to anyone but them.

Overall, the use of Technology and innovation in banking and finance has revolutionized how banks and financial institutions operate. Through the use of these advanced technologies, banks and other financial institutions can now provide more efficient and cost-effective services to their customers. Additionally, the use of Technology and innovation in banking and finance has enabled businesses to automate their financial processes, reducing the need for manual labor and saving them time and money. Finally, the use of Technology and innovation in banking and finance has allowed financial institutions to protect their customer’s data better and provide more secure services. For these reasons, the use of Technology and innovation in banking and finance is a positive development that should be encouraged and supported.

Technology has revolutionized the banking industry, creating more efficient and secure ways of handling financial transactions. Technology has also opened up new opportunities for banks to offer their customers more sophisticated services, such as online banking and mobile banking. In addition, Technology has allowed banks to become more competitive in terms of customer service and cost efficiency. Innovation has allowed banks to explore new business models and develop products and services that meet changing customer needs. The potential of Technology and innovation in banking and finance is enormous, and the possibilities for the future are exciting. Banks must continue to invest in Technology and innovation to ensure they remain competitive and provide the best possible customer experience. With suitable investments and strategies, banks can continue to lead the way in banking and finance.

Finally, Technology has enabled banks to become more competitive and has opened up new opportunities for banks to offer their customers more sophisticated services. Innovation has allowed banks to explore new business models and develop products and services that meet changing customer needs. To ensure continued success, banks must continue to invest in Technology and innovation to remain competitive and provide the best possible customer experience.

Meister, F. L. (2022).  An investigation of conversational artificial intelligence platforms (clip) in the banking/finance industry-practical and innovative future recommendations in the form of artificial intelligence  (Doctoral dissertation).

Al Kemyani, M. K., Al Raisi, J., Al Kindi, A. R. T., Al Mughairi, I. Y., & Tiwari, C. K. (2022). Blockchain applications in accounting and finance: qualitative Evidence from the banking sector.  Journal of Research in Business and Management ,  10 (4), 28-39.

Jarvis, R., & Han, H. (2021). FinTech Innovation: Review and Future Research Directions.  International Journal of Banking, Finance and Insurance Technologies ,  1 (1), 79–102.

Utami, P., & De Guzman, M. J. J. (2020). Innovation of technology-based strategies based on environmental examination organizations in Islamic banking and finance.  Asian Journal of Multidisciplinary Studies ,  3 (1), 117-126.

Dutta, P. R. (2020). Shadow Banking in India & the Lender of Last Resort.  Journal of Emerging Technologies and Innovative Research ,  7 (8).

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Home — Essay Samples — Economics — Banking — Analysis of Technology and Innovation in Banking/finance Sector

Analysis of Technology and Innovation in Banking/finance Sector

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Essays on banking and financial innovation

• Center Ph. D. Students
• Research Group: Economics

Research output : Thesis › Doctoral Thesis

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• Thesis Di Gong Final published version, 722 KB

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• Securitization Keyphrases 100%
• Financial Innovation Keyphrases 100%
• Banking Innovation Keyphrases 100%
• Systemic Risk-taking Keyphrases 40%
• Macroprudential Regulation Keyphrases 40%
• Motivation Keyphrases 20%
• Policy Debate Keyphrases 20%
• Adverse Selection Keyphrases 20%

T1 - Essays on banking and financial innovation

AU - Gong, Di

N2 - This dissertation consists of three chapters. Chapters 2 and 3 examine the ex-ante motivation and the ex-post impact of securitization. Departing from the traditional literature of bank-specific drivers for securitization, I investigate the tax incentive for securitization in a cross country setting. In addition, unlike the prior micro studies of the impacts of securitization, for instance, the adverse selection in the securitization market and so forth, I study the macro impact ofsecuritization on real economy. Another strand of my research focuses on banking regulation, especially macroprudential regulation. I am particularly interested in the fact that banks may ex-ante take risk in anticipation of regulatory forbearance in a systemic banking crisis and its implication for macroprudential regulation. Consequently, chapter 4 analyzes systemic risk-taking at banks in the presence of “too-manyto-fail” bailout guarantee. In sum, shedding light on securitization and systemic risk-taking in the banking sector, this dissertation contributes to the policy debate on bank regulation.

AB - This dissertation consists of three chapters. Chapters 2 and 3 examine the ex-ante motivation and the ex-post impact of securitization. Departing from the traditional literature of bank-specific drivers for securitization, I investigate the tax incentive for securitization in a cross country setting. In addition, unlike the prior micro studies of the impacts of securitization, for instance, the adverse selection in the securitization market and so forth, I study the macro impact ofsecuritization on real economy. Another strand of my research focuses on banking regulation, especially macroprudential regulation. I am particularly interested in the fact that banks may ex-ante take risk in anticipation of regulatory forbearance in a systemic banking crisis and its implication for macroprudential regulation. Consequently, chapter 4 analyzes systemic risk-taking at banks in the presence of “too-manyto-fail” bailout guarantee. In sum, shedding light on securitization and systemic risk-taking in the banking sector, this dissertation contributes to the policy debate on bank regulation.

M3 - Doctoral Thesis

SN - 978 90 5668 458 7

T3 - CentER Dissertation Series

PB - CentER, Center for Economic Research

CY - Tilburg

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107 Innovation Essay Topic Ideas & Examples

Inside This Article

Innovation is a key driver of progress and growth in any field, whether it be in science, technology, business, or the arts. As such, it is a topic that is frequently explored in essays and research papers. If you are struggling to come up with a unique and interesting topic for your innovation essay, look no further. Here are 107 innovation essay topic ideas and examples to inspire your next writing project.

The impact of artificial intelligence on innovation in the workplace

How blockchain technology is revolutionizing the financial industry

The role of innovation in addressing climate change

The future of transportation: innovations in electric vehicles

The ethical implications of gene editing technologies

How virtual reality is transforming the way we experience entertainment

The rise of telemedicine: innovations in healthcare delivery

The role of innovation in addressing food insecurity

The impact of 3D printing on manufacturing processes

How the sharing economy is driving innovation in the service industry

The potential of renewable energy technologies to revolutionize the energy sector

Innovations in cybersecurity: protecting data in the digital age

The role of innovation in creating sustainable cities

The impact of social media on innovation and creativity

How biotechnology is revolutionizing healthcare

The future of work: innovations in remote collaboration

The role of innovation in addressing global poverty

The impact of autonomous vehicles on transportation systems

Innovations in education technology: transforming the classroom experience

The ethical implications of artificial intelligence and machine learning

The role of innovation in disaster response and recovery

The impact of big data on innovation in business

Innovations in renewable energy storage

The future of space exploration: innovations in propulsion technology

The role of innovation in addressing mental health challenges

How the Internet of Things is transforming everyday life

The ethics of gene editing and designer babies

The impact of virtual reality on mental health treatment

Innovations in sustainable agriculture

The role of innovation in addressing income inequality

The potential of quantum computing to revolutionize technology

Innovations in personalized medicine

The impact of biometrics and facial recognition technology on privacy

The future of sustainable fashion: innovations in eco-friendly materials

The role of innovation in promoting social justice

How drones are revolutionizing industries from agriculture to delivery services

The ethics of autonomous weapons systems

Innovations in clean water technology

The impact of 5G technology on communication networks

The role of innovation in addressing mental health stigma

The potential of regenerative medicine to revolutionize healthcare

Innovations in prosthetics and assistive technologies

The impact of virtual reality on empathy and social change

The future of smart cities: innovations in urban planning

The role of innovation in addressing gender equality

How bioengineering is revolutionizing the production of food and consumer goods

The ethics of artificial intelligence and decision-making

Innovations in disaster-resistant infrastructure

The impact of social media on political innovation

The role of innovation in promoting diversity and inclusion in the workplace

The potential of nanotechnology to revolutionize materials science

Innovations in sustainable transportation

The impact of biotechnology on personalized nutrition

The future of wearable technology: innovations in health monitoring

The role of innovation in addressing plastic pollution

How blockchain technology is transforming supply chain management

The ethics of autonomous vehicles and driverless cars

Innovations in sustainable architecture and design

The impact of artificial intelligence on creative industries

The role of innovation in promoting mental health awareness

The potential of gene editing technologies to cure genetic diseases

Innovations in renewable energy generation

The future of smart homes: innovations in home automation

The role of innovation in promoting environmental sustainability

How bioengineering is revolutionizing the production of consumer goods

The ethics of artificial intelligence and privacy

Innovations in disaster-resistant building materials

The impact of social media on political activism

These 107 innovation essay topic ideas and examples cover a wide range of disciplines and industries, providing you with plenty of inspiration for your next writing project. Whether you are interested in exploring the ethical implications of emerging technologies, the role of innovation in addressing social challenges, or the potential of cutting-edge scientific advancements, there is sure to be a topic on this list that piques your interest. Happy writing!

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544 Innovation Essay Topics & Examples

Looking for innovation essay topics? This process is exciting and worth exploring!

🏆 A+ Innovation Essay Example

👍 good essay topics on innovation, ✅ best innovation research topics, 📑 innovation research title examples, 📌 innovative essay topics, 🥇 exciting innovation topics for essay, ❓ innovation research questions.

Innovation means introducing new products, services, and ideas in any sphere. It takes place in technology, science, business, education, etc. If you’re searching for innovation essay examples and topics, this article will be helpful. It contains innovation research titles, paper samples, and ideas for writing assignments and presentations.

• How Innovation and Technology Makes Life Easier On the contrary, all of the essential parts of the life of our society are based on the use of technology.
• Innovation and Enterprise at Tesco While the management claims that the staff in the supermarkets are always ready to help the customers, the company encourages the latter to use self-service tills as well.
• Innovation and Its Positive Impact on the Society The stage gate model is used to manage the risks that are associated with the development of new products. This is because the product development and innovation process faces a number of risks.
• Schumpeter’s Innovation Theory Schumpeter’s theory provides that the leading role of an entrepreneur in the economic field is the introduction of innovations from which the reward is gaining profits.
• Creativity and Innovation Management In this context, the task of the CEO is to make the stakeholders to understand the meaning of innovation and why it is necessary in ensuring that P & G remains at the top of […]
• Apple Company: Innovation Strategy Implementation The second one investigates the driving factors that have contributed to the company’s innovation strategy, while the third one explores the relationship between culture and innovation at Apple.
• The Role of Innovation in the Development Innovation is one of the causal factors of fundamental changes in the livelihood of people in the society. The role of innovation in the development of military, economic, and cultural superiority was the facilitation of […]
• The Role of Innovation in Business Development From the discussion, it is clear that the role of innovation in business development is to create value, which sustains the business in the long-term.
• Technology & Innovation: LG Electronics Strategy Report The development of technology is very important in the electronics industry and therefore LG electronics ensures that innovation and technology of the organization are managed effectively.
• General Motors: Supplier Selection for Innovation Orbitty was volunteered to share its Intellectual Property so that General Motors could maintain the control of I.P.indulged in the schemes, then possess the Intellectual Property swiftly and independently to respond to dynamics in the […]
• Innovation in History: How Guns Changed the World During a long period of time, guns have changed the world considerably: they help to defend oneself; they make it easier and faster to kill and injure people, very often, innocent people; and they obliterate […]
• Artificial Intelligence: Positive or Negative Innovation? He argues that while humans will still be in charge of a few aspects of life in the near future, their control will be reduced due to the development of artificial intelligence.
• Barriers to Creativity and Innovation The authorities in the nations asserts that, evident barriers to innovation that includes poor research and lack of resources influences generation of new ideas.
• Disruptive Innovation in Hospitality Industry The health risks of contracting COVID-19 influenced disruptive innovations in hospitality to facilitate contactless services in the hospitality industry, forcing organizations in the sector to respond to the innovations.
• 3M Corporation’s Innovation Engine Case Five percent of the total annual was allocated to R&D to support the development of new lines of products and improve the existing ones.
• Managing Innovation and Entrepreneurship This is creativity of the business which is targeted at capturing the attention of the consumers in the market. Therefore the advancement of the two concepts in the organisation or advancement of one concept at […]
• Innovation: Meaning, Importance, and Challenges One of the most distinctive features of innovation in the modern world is the necessity for speed: everything is sought to be done faster.
• Leading Innovation and Change Based on these definitions, the fundamental elements of innovation include change, the degree of change, as well as, the source of the change and its influence.
• World War II Innovations Named as the Manhattan Project during World War II, the nuclear program of the Allies led to catastrophic consequences for the Axis forces, particularly in the context of the bombings on Hiroshima and Nagasaki, which […]
• Innovation In Health Care Instead, face to face workshops after the initial training would have been used such that the employees would have to fit into the new system rather than fitting the new system into their existing structure.
• Innovation, Creativity, and Enterprise Management at Starbucks In this sense, the authors propose that the main issue to investigate when studying the dynamics of business opportunities is the entrepreneurial capacity to develop, recognize, and evaluate them.
• Samsung and Procter & Gamble: Open Innovation Chesbrough’s definition of open innovation is based on the theory that in order to prevent the exhaustion of the internal resources, the leadership of a company is to engage the external opportunities of obtaining creative […]
• The JD Sports Firm’s Innovation Strategy Innovation is the key to the strategic success of a business, as this path helps it to stand out from the competition in the market.
• Sports as Media, Technology, and Innovation Sport is the sum of all efforts made to safeguard an individual’s mental and physical well-being, maximize the sensations of excitement, competition, and victory, and optimize personal accomplishment within a set of regulations.
• Steve Jobs: Persistence and Innovations It has been reported that at once stage Steve was relieved of his position as the CEO of his the company he started and owned, thanks to the dynamics of corporate governance.
• Social Cognitive Theory and Diffusion of Innovations In order to understand why theories are important for the sphere of public health, it is necessary to focus on the analysis of such two main theories as to the Social Cognitive Theory and the […]
• Sainsbury’s Company’s Sustainable Innovation Management Currently, the company is also in the process of merging with Asda, another retailer functioning in the same industry sector but different regions this merger could significantly shift the position of the business and make […]
• Innovation in Organizations: Theories & Practices They include the Jenga theory of creativity, the systems, the functionalist, the interpretive, the radical humanist, and the radical structuralism theories.
• Coca-Cola Innovation Strategy Coca Cola at its disposal have a model known as segmentation; this has made it possible for the company to serve the needs of distinguishing clientele, as well distinguishing the company’s brand; this has been […]
• Technological Innovations in Transport Because of the heaviness and bulkiness of some of the goods of trade, many people used animal transport to move their products from their homes to the trading centers.
• Age Diversity Impacts on Innovation: Coca-Cola Company In focusing on determining the impacts of age diversity on the organisational performance of the Coca-Cola Company in the Birmingham area, Alabama, United States, this paper found that the company has adopted diversity and inclusion […]
• Corporate Branding: Innovation in British Airways Therefore, the provision of low airfares becomes an interesting topic of discussion in addition to the technological advancements that contribute to the cost of transportation as well as to the enhancement of the customer experience.
• Electricity as a Revolutionary Innovation This essay will use the logical appeal method to illustrate the status of the use of electricity as an innovation that has had the largest impact on humanity.
• Apple Company’s Creativity and Innovation With this in mind, this paper will critically analyze the concepts of creativity and innovation in Apple Inc, the impact of transformational leadership on creativity and innovation, and finally focus on how Apple’s transformational leaders […]
• Product and Innovation Management of Nokia Since 2013, Nokia Corporation has been radical in its innovation that has resulted in the development of the Nokia Lumia 435, Nokia Lumia 730, Nokia Lumia 535, Nokia Lumia 620, Nokia Lumia 830, Nokia Lumia […]
• Next Plc Company’s Innovation Management Its beneficial characteristics underline the need to include its features in the strategy of the company, and it could be said that Next Plc can be viewed as one of the firms that attempt to […]
• Innovation Of The Workplace For such a setting as the Sprint Store, the labour intensity should equate to the product of hours worked by every employee and the share of the employment within the group setting.
• Developing Business and Social Innovation Through Creativity and Foresight Methods Usually, the story is outlined broadly and based on some tropes or stock characters, while the details, dialogue, and the exact direction of the story are left to the actors. Role-playing and improvisation can be […]
• Fiat Mio as a Collaborative Innovation The head of the Fiat Brazil Style Center, Peter Fassbender, gathered the company’s best representatives in the innovation, publicity, and communication departments and offered an open innovation paradigm in which Fiat consumers were invited to […]
• Innovation, Creativity, and Intrapreneurship Creativity occurs in the event of identification of a need that is untapped and unexploited hence the need to fill in that gap and create equilibrium in the market.
• Zara Company’s Sustainability and Innovation For instance, when the authors describe the success of the Zara model, they attribute it not only to innovation, but also to observation of standards and operating on low cost. The firm should be cautious […]
• Samsung: Innovation in Organizations The stress on innovation and generation of new ideas for the sake of development of new and futuristic products that are called the “wow products” became the insignia for the new strategy that Yun had […]
• Fiat Mio Project: Open Innovation It helped the company to become one of the leading market players in the automotive segment and defined its substantial part of the market share.
• Technological Innovation College: IT Internship Report The College of Technological Innovation at the University offers highly sophisticated Computer Service Desk and the network system that serve the entire institution. It has state-of-the-art equipment meant to promote research in the IT sector […]
• Procter & Gamble Company: Entrepreneurship and Innovation The three main dimensions of entrepreneurship include: Innovativeness, or the tendency of an organization to engage in and encourage novel ideas, experimentation and creative processes, thus departing from traditional norms in favor of new practices […]
• The Theories of Innovation and Change Process The first part is the consideration of the signals of change, the second part is the analysis of the competitive battles, and the third part is the applying to the strategic choices.
• Innovation, creativity and design In addition, design acts as the plan to be used in the process of developing a product or service. In other words, innovation is a brilliant new concept while design refers to the structure of […]
• Apple Inc.’s Innovation Focus Strategy: Pros & Cons One of the recommendations is the focus of the company on the innovative solutions. Table 1 presents pros and cons of implementing the proposed recommendation.
• Saudi Aramco Company’s Energy Strategy and Innovation One of the focus areas of Saudi Aramco’s strategy to meet the rising demands for energy is to reinforce its position in oil and gas exploration and production.
• Future Innovations and Their Role in People’s Life For instance, laptops and smartphones that allow people to make video calls to their friends and family on a different continents altered the conventional realization of space and time.
• Disruptive Innovations: Self-Driving Vehicle Technology With the enactment of these regulations, it is extrapolated that by the 2040s to 2060s, these automobiles will have significantly replaced human-driven cars on roads.
• Plastic Manufacturing Process and Innovations In the context of the explored topic, the technological process of plastic productions should be discussed to enhance the explanation of how human activities influence the environment.
• Types and Patterns of Innovation As such, knowledge of the patterns for the creation and adoption of new ideas is essential for both company managers and researchers.
• Tata Motor’s Innovative Processes Valuation The second segment is the innovation theory review, which explores key theoretical underpinnings of the study by examining the role of the diffusion of innovations theory and the five-stage high involvement framework in Tata’s innovation […]
• Education in the 21st Century: Key Innovations The source will be helpful in the American education of the 21st century as it evaluates the creative teaching methods of the system.
• Airbnb Business: Radical Service Innovation Classifying the innovation in terms of Product/Service/Process, it is possible to pinpoint that Airbnb business is primarily based on service innovation.
• Technology and Innovation: Western Civilization History The people living in the Western world were stuck in the innovation and technology that was available in the Medieval Age.
• Managing Product and Service Innovation for Kodak The first camera to consumers was handed to a customer in 1888 with the slogan ‘You press the button, we do the rest’. The user of the camera would reload the camera without the necessity […]
• An Innovation of Solar Charged Laptops In addition, the general plan of the competitor in a bid to control the market is a vital toolkit which this company can use to estimate the competitive edge of the market.
• Gordon Lankton’s Innovation Management at Nypro Company He worried that a stagnation of growth might be disastrous to the company as this would cause the most entrepreneurial and best employees to leave the company.
• Innovation, Value Creation and Sustainability In order to be value-creating, the firm must produce artifacts or provide services that satisfy a particular set of human needs.
• Diffusion Innovation Theory and People Categories In the social system, the first category is the innovators. They make part of the social system that is difficult to adopt the new innovation.
• Dubai Airports Company’s Innovation Strategies The details of the initiative were presented to the public in 2014 as Dubai Airports Company revealed the plan of investing $32 billion in introducing the innovations and expanding the structure of Dubai World Central […]
• Apple’s, Samsung’s, IBM’s, Tesla’s Innovation and Creativity Apple is the best-known example of innovation and creativity in the world. Samsung is another modern company that is famous for the promotion of creativity and innovations.
• Amazon’s Innovation Using Information Technology The foundation of the company’s business model is innovative marketing based on media products because of the ability to reach potentially higher numbers of customers in different corners of the globe.
• Innovation Management in Honda The problem arose from the failure of a follow up market plan to raise necessary awareness for the products to be well received in the market and also the release of the prius which was […]
• Coles Supermarkets: Innovation Through E-Tailing Therefore, this report suggests the introduction of Asian foods in Coles’ retail portfolio, and sale of the commodities through the internet or physical stores.
• Managing Innovation at Nypro, Inc. Nypro Inc.is a plastic injection molding company which was established in 1955 as Nypro products cooperation and the performance of the company was average, similar to other companies in the plastic injection molding industry.
• Some of the most significant innovations of the 20th Century The computer It is impossible for the human race to think of the world in the absence of computers. The airplane The significance of the airplane in the 20th century can be equated to the […]
• Mobile Banking Innovation In the mobile industry, mobile banking is one of the recent innovations that have influenced the operations of the telephone/mobile phone industry positively.
• Technological Innovation in the Private and Public Sectors of the UAE In the context of the study of the influence of the private and public sectors and technological innovations in them, the countries of the Middle East and North Africa region are of particular interest.
• Mercedes Benz: The Transition to a Continuous Innovation Process The main business model of Mercedes Benz is innovation, which is in the basics of science and practice of general management.
• GlaxoSmithKline: The Management of Innovation As GSK strives to research and discover innovative products some of the challenges that it is likely to experience due to its large number of DPU teams include the following.
• Google Glass Innovation’s Strengths and Weaknesses These are some of the main advantages that this device can offer. In particular, they should focus on the development of software that can maximize the benefits of this wearable computer.
• Innovations: Planned and Unplanned In other cases, the unplanned innovations actually lead to planned innovations since after an individual comes up with an idea, the organization may desire to perform systematic checks of the relevance of the innovation and […]
• The Digital Transformation and Innovation Nexus The practical orientation of the study ensures its applicability in the current economic environment characterized by the increasing complexity of the organizational landscape.
• Innovation Management vs. Entrepreneurship The example depicts the process of innovation management and the role that entrepreneurship plays in it. Any company that wants to push the boundaries of what is possible should be interested in nurturing and retaining […]
• Innovations of Society: Car Innovations The current innovations in cars have influenced the market trends and growth of the industry thus contributing to the growth and development of the economies.
• Innovations in the Engineering Consultancy Sphere In particular, the Beca’s company has launched the program called the Beca Innovation Awards for encouraging the working staff to use more innovative approaches for effective working that, in its turn, would augment the value […]
• Innovation and Creativity in a Complex World This paper will highlight what the society can do in order to ensure that the future of management is bright and that the Y generation extends the high performance and productivity.
• Domino’s Pizza Inc.’s Strategy of Innovation and Technology As such, Domino’s took account of the technological segment of the general business environment to ensure that it expands its market share.
• Science and Innovation in Different Societies Firstly, it is critical to study the importance of science and innovation because the fields high influence the life of people by making it more convenient such as the usage of elevators.
• Knowledge and Innovation in Business The two views of knowledge were summarised by Cook and Brown, who described the first type as ‘knowledge as a possession’ and the second one as ‘knowledge as practice’.
• Unilever’s Product Development: Collaborative Innovation There is the possibility of the comprehensive use of the efforts of the project partners at the preproduction, production, and marketing stages, which contribute to the achievement of positive externalities due to the synergistic effect.
• Innovation Management Plan: Amazon Company It is explained by the fact that the organisation provides the most convenient way to deliver goods, a moderate price, all the necessary information, and a wide variety of options as a result, it has […]
• Tesco Group’s Culture and Innovation The organisations culture is very influential on the innovativeness of the organisation as the cultural aspects may hinder or promote the innovativeness and creativity of the employees.
• Emirates Airline’s Differentiation and Innovation The global airline industry is highly competitive and this company is always under pressure to deliver superior services to manage the rivalry in the market.
• STAR Insole Innovation: Business Plan As the demand for customised insoles continues rising, most of the insoles available meet the general needs of the consumers. That is why we propose the development of Insoles, which warm the feet based on […]
• Vienna as a Smart City and Its Innovations A “smart city” is an excellent type of city to support innovation because it is organized around the idea to be self-sustainable with the use of information and communication technologies and multiple other innovative means […]
• Culture and Innovation in Organizations As Sims notes, the challenge is to build an organizational culture where members oppose the temptation to act in ethical manners that promote interests at the cost of the firm or promote the interest of […]
• Importance of Innovations in Operations Management Before giving the newly developed ideas a chance in the company’s operations, strength of the ideas should be greater than the ones in use, contrary to the weakness which should be less.
• Canadian National Railway Co.: The Challenge and Fun of Innovation Despite the fact that at present, Canadian National Railway is at the top of the list of the most successful companies in Canada, it is most likely to face a number of challenges in terms […]
• Kodak: Evaluation of the Innovation The company had disrupted the camera market by introducing the digital camera but it could not determine what to do with the new product.
• 3D Printers: Innovative Tools or Threat to Business? 3D printers are an innovative creation, but they threaten the same innovation that led to their existence by replacing an entire system of production, which is what industrialization is based on.
• Innovations on Energy and Water Co-Benefits In addition, the number of harmful emissions that are harmful to both people and the planet will be significantly reduced. The introduction of social innovations is to develop strategies that will solve social problems.
• The Contemporary Role of Social Innovation However, no less important are the tendencies of social development, innovations in which contribute not only to the development of business but likewise, first of all, to stabilization and improvement of the quality of society’s […]
• Revitalizing Detroit: A Vision for Innovation, Community, and Growth That is why it is irrational to free up the space and give it to nature, which refers to Option A. On the other hand, a suitable option is to invest in innovations and sustainability.
• Capability: Business Model Innovation in Mergers It is an architecture of deliverables that links the business to the technology system and provides the basis for enterprise evolution.
• Enterprise and Innovation: McDonald’s Company Information Combining the selling point of the main brand tasty and fast delivery of food for the family with healthy points of the MC Light would make it one of the key players on the market.
• Leadership and Innovations: Article Review This allowed Apple to create a culture of innovation, openness, and achievement, unlocking the potential of employees looking for ways to improve the product.
• Disruptive Innovation: Comparative Advantage In summary, the greatest risk is that if the company commits to disruptive innovation, its customers might prefer the products of the organization’s rivals that provide sustaining innovations.
• The Byrne Criminal Justice Innovation Program The policy reflects social control, ensuring that members of society are compliant and follow the rules to ensure community safety and sustainability.
• The Debenhams Firm’s Innovation Strategy Debenhams was founded in 1813, and based on the fundamentals of share prices, it has now reached the phase of “Decline,” and it is at the absolute end of its lifetime.
• Explaining Business Model Innovation Processes In order to solve the significant issues that affect the economic growth of the country, a company such as Winn-Dixie should introduce its organizational methods and begin operating in the most urbanized areas of the […]
• Diffusion of Innovation as Exemplified by Bitcoin This paper will give an example of a company officially registered as “Satoshi Nakamoto,” which created and implemented one of the first and most popular cryptocurrencies – Bitcoin.
• Advocating for Research and Innovation While Protecting the Public Public health professionals, including researchers, health managers, and educators, should ensure that all guidelines concerning the health and safety of persons participating in research trials are observed. Past trials indicate the areas that need to […]
• Google’s Culture: Innovation, User-Centric Marketing, Sustainability The company ensures that employees love their work and want to do it, and that is what will bring the company success.
• The Home Depot’s Journey Towards Innovation and Effective Change Leadership The central factor that leaders should consider is the reaction of their employees to the planned modernization, as resistance in the form of active protest or passive sabotage can significantly undermine the management efforts.
• Technological Innovations in Healthcare First of all, it is necessary to note the technology of maintaining medical records used to control the history of diseases and treat the patient. This ensured timely and most effective diagnosis, which led to […]
• Commercialization and Innovation Best Practices An example of this is the University of Amsterdam, which, in the middle of the 1990s, decided to sell the science park to the Zernicke group, which was investing in international innovation.
• Innovations and Culture of British Football Consisting of some of the best clubs and with a significant number of fans, this football league is an example of sport as entertainment.
• Fractures Prevention Innovation and Its Translation For this reason, it is more appropriate to discuss the application of translation science theory using one example of complications, namely the high risk of fractures in people living with diabetes.
• Proctor & Gamble: Open Innovation Model According to BaSic, the open innovation model is developed in the direction of innovation networks, innovation entrepreneurship, innovation cooperation and partnership, innovation ecosystems, and clusters, which are at the center of human capital innovation progress.
• Impact of Innovation on Business and Social Spaces To begin with, the competition in the market is strongly related to innovation in the companies. Teamwork is essential for the company to create an outstanding strategy and remain flourishing in the market.
• The Innovation Process: Successes and Failures The success of innovation depends on many factors, but most of all on understanding: “To truly manifest innovation, you must realize that innovation is three different things: innovation is a result, innovation is a process, […]
• Under Armour’s Approach to Change and Innovation By involving clients in a sequence of mockups to gain knowledge, experiment, and modify ideas, design thinking would reduce the confusion and threat of innovation. That is how UA was not afraid of innovativeness and […]
• The Public Sector Innovations and Changes Innovations in the public sector can have a significant role in the life of society. More accurate targeting of user needs is also becoming a significant contribution to innovation in the public sector.
• Congestive Heart Failure Treatment Innovations The relevance of the problem of this disease for health care is conditioned by the prevalence of pathology and the high economic costs of its treatment.
• Small-Group Communication: Innovation in Aging A small group is essentially an assemblage of two or more individuals that communicate while engaging in certain events or an interconnected aim and can exercise correlation amongst each other. Every team member can acquire […]
• Transformational Leadership Benefits Innovation The characteristics of transformational leadership include intrinsic motivation, transparent and effective communication, cooperation, employee encouragement, an ethical and positive climate, mentoring and coaching, and persuasion. To summarize, transformational leadership is an effective and growth-oriented approach […]
• A Biological Science Innovation Article Analysis The most intriguing aspect of the article “Research that shines light on how cells recover from threats may lead to new insights into Alzheimer’s and ALS” by Brian Andrew Maxwell is that it offers information […]
• Role of Disruptive Innovations for Society The transition to such innovations has allowed us to move away from the usual structure of life and reach a new comfort level.
• Corporate Internal Governance Structure & Innovation Behavior The behavior and efficiency of enterprise technological innovation are essential to the development of enterprises. The behavior and efficiency of enterprise technological innovation are essential to the development of enterprises.
• Personal Business Plan and Development of Innovation For this reason, I want to attain success in various spheres and show others how to do it. That is why I need a structured and clear plan of how to do it.
• Sustainable Innovations and Environmental Certification It is the primary reason for the demand to conduct research to contribute to a more reasonable understanding and implementation of sustainable development.
• Ulta Beauty, Inc.: Methods of Innovation To ensure a prosperous future and transformation of the company, it is vital to combine internal research and development methods of innovation with external methods directed at cooperation with clients and competitors.
• Innovation and Technology in the Construction Industry Construction innovations continue to increase rapidly. Most innovations focus on automation.
• Agrarian Innovation in the Transition From Rural Life to Urban It was along with the increase of resources and the improvement of tools and methods of labor that the first urban settlements began to appear.
• Innovation and Technology Management and Decision Making It is necessary to mention that although the innovation of the production process also includes investing in new technologies, the two directions should not be confused.
• “Artificial Intelligence in Healthcare” and “From Spreading to Embedding Innovation” That is, the narration in the article is free of ill-founded value judgments, and the language corresponds to the article’s subject matter, which is artificial intelligence in healthcare.
• Implementation of Long-Lasting Innovations It goes without saying that innovations are immeasurably significant for the growth and development of any organization, however, it is essential to make the continuous to guarantee the stability of success in the future.
• Disruptive Innovation of Uber and Spotify However, one day I saw Uber in one of the online ads and decided to check what it offers. I was satisfied with the price of the trip and the overall quality of the service.
• Melanoma Treatment and Its Innovations Indeed, innovations in the sphere of melanoma treatment are connected with the use of checkpoint inhibitors and the so-called adjuvant therapy.
• Innovation and Change in Healthcare In particular, it is important to provide people not only with evidence of the existence of the problem and its consequences but also to indicate the overall goal of changes. It is also important to […]
• Rebecca Love: A Promoter of Nurse-Led Innovation It is important to note that while promoting changes and innovations in the healthcare system, Love does not urge nurses to forget existing theoretical concepts.
• Examples of Vital Innovations Vision, being one of the fundamental properties of human perception and understanding of the world, very often requires help in the form of glasses.
• Downtown Innovation District in Brampton, Ontario The government plan to make the District the center for innovation to develop talent in the young people. According to the mayor who pushed for the $21 million allocations, the project is a game-changer, especially […]
• Innovation Technology for Deaf and Hard of Hearing People In conclusion, the device for deaf and hard of hearing people Oticon more is a strong leader in the market of such devices.
• Successful Innovations in Healthcare Settings One of the most critical issues facing healthcare organizations today is the lack of qualified and skilled people to care for the growing number of patients.
• Entrepreneurship and Innovation Barriers in Australia The general objective of the research is to determine the barriers to entrepreneurship and innovation faced by S.M.E.s in Australia. How are the challenges to entrepreneurship and innovation reflected in S.M.E.s in Australia’s industries?
• Innovation and E-mail Rules in Tesla E-mail exchange within the structure of a company allows for the aligned and systematic exchange of information pertaining to operations within an organization.
• Innovation in Construction: Green Technology Innovative solutions for buildings with low energy consumption are actively developed and introduced into modern practice.
• Impact of Ancient Chinese Innovations It is important to note that the growth experienced in China results from the technological advances it has made in the area of science and technology. Since it is ahead of other countries in the […]
• Aspects of Collaborative Innovation Furthermore, a niche business is compatible with the idea of anti-theft bike handles it serves a specific audience that needs their bikes to be safe.
• The Principles of Diffusion Innovation Model The paper examines the manner in which the principles of the diffusion innovation model can be involved in the campaign on STDs among the youth.
• Business Model Innovation in the Hospitality Industry The article’s literature review is relevant to the study, and it allows the reader to understand its relevance and compatibility with previous research.
• Technological Innovation Effect on Urbanization By the 20th century, as large-scale industrial production became effective, the idea of urbanization appeared, leading to the further growth of the world’s leading cities. As such, the idea of urbanization is the cornerstone of […]
• Analyzing the Dimension of Innovations The incremental innovations should be introduced faster and contribute to the advancement of current products yearly. Such a strategy is based on increasing people’s loyalty to the brand, which further benefits the organization and contributes […]
• Technology and Innovation: Entrepreneurial Action Research Project It is important to have prior information of the technological demands of the market, and ways to beat the existing ones.
• Innovations in Mobile Communication Devices The advent of mobile communication devices and the Internet brought a paradigm shift in the way that people worked, interacted and lived and changed the speed with which communication was conducted.
• Retina Display: Strategic Marketing and Innovation Retina display is a new brand name by Apple. It has been used in company’s products including the iPad, MacBook Pro, iPod Touch among many other gadgets produced by Apple.
• Henry Cowell: The Genius of Musical Innovations Describing those times in terms of the influence and direction, it is possible to refer to the works of Cowell himself, who also wrote many articles, and “from an early point in his career was […]
• Wesfarmers: Organization Innovation Analysis This paper discusses on how innovation in Coles has been managed in Wesfarmers organization: IT, Animal Rights, and Environment positions.
• Technology and Innovation Management in Organizations As a firm, it would be necessary that new designs of the aquariums are developed, which would facilitate improved fish care system. This would help to manage market competition.
• Organizational Culture and Innovation Implementation Therefore, it is important to create an organizational culture that encourages innovative behavior and creative thinking. To maximize the potential benefits of a creative idea, critical analysis must be an element of an organization’s culture.
• Healthcare Informatics Innovations Analysis Florida is currently participating in various collaboration initiatives intended to improve the level of security when it comes to the use and access of patient data.
• Innovation and Spatial Development: Case of Bucharest Regional and national disparities in political, economic and social development have also contributed to the creation of a conducive environment for innovation.
• Disruptive Innovation and Its Effects on the Market As defined by the author of the theory, disruptive innovation shapes a new network of values on the market that displaces the existing products.
• Social Innovations. Opportunities for Youth One of the ways which have been identified to help in the empowerment of the youth is through the youth social initiatives.
• Innovation in Healthcare: The Central Sterilizing Supply Department The identification of the problem and the rationale for the need of change of the CSSD is essential in change management strategies.
• Innovation at Google: How Does It Generate Its Revenues?
• Technological Innovations: Importance in Manufacturing
• Business: Open Innovation
• COVID-19: Spa Industry and Innovation Opportunities
• Diffusion of Innovations Theory
• The Discipline of Innovation: The Trimming Technique
• Pressure Ulcers Innovation in the Medical Sector
• Project Innovation and Implications in Healthcare
• Diffusion of Innovation and Change: The Many Faces of Social Interactions
• Population Health Driver Diagram: Innovations and Their Use in Nursing
• Clinical Leadership and Innovation
• Energy Trust: Technology and Innovation
• Social Needs: Inventions and Innovations
• Financial Innovation: Risk and Return Theory
• Healthcare Organizations and Innovations: Enhancement of Excellent Service Delivery
• Examining Co-Evolving Policy and Innovation Systems
• Visualizing Innovation During the Covid-19 Pandemics
• Data Blind Spots in Visualizing Innovation in Egypt
• Diffusion of Innovation: Key Aspects
• Disruptive Innovation: Accommodation Businesses
• The Global Innovation Index in Several African States
• The Global Innovation Index: Kenia
• Artistic Planning: Innovation Analysis
• Technology Innovation and the Healthcare Delivery Future
• Four Innovation Strategies Described by Merle Crawford
• Future Innovation in the Energy Industry
• Innovations: Successful Business Performance
• Henry Ford and His Innovations
• Organizational Culture, Innovation, and Performance: A Test of Schein’s Model
• Artificial and Automated: Innovation in Marketing
• US Government and Technological Innovation
• The Phenomena of Open Innovation
• Reflection on the Design and Innovation Course
• Contemporary Education System is Driven by Innovation
• Innovation Effects in the Tourism Industry on the Quality of Elderly Care
• Humanitarian Help and Furniture Innovation Concept
• Innovation and Creativity in Entrepreneurship
• Healthcare: History and Innovations of New Technologies and New Treatment Methods
• Abu Dhabi Police Department Innovations
• History of Art: Modernism’s New Industry and Innovation
• Innovation and Creativity in Management Analysis
• Phitone Corp.’s Innovation and Entrepreneurship
• Technology and Innovation-Microsoft and Internet
• Managing Innovation: Creativity, Chaos, Foolishnes
• Curriculum Development and Organizational Innovations
• Innovation and Creativity in the Garment Industry
• Organizational Psychology: Innovation and Creativity
• Television Systems: Innovation and Evolution
• Doctors Without Borders:Resolving Remedy Innovation Gap
• France and Switzerland Innovation Industry Analysis
• Science and Innovation in the Middle Ages
• Cemex Firm’s Innovation and Entrepreneurship
• Open Innovation and Strategy in the UAE
• Innovation in Family Firms: A Guidance for Future Research
• Innovation Idea: Problem With Organization and People’s Self-Discipline
• Entrepreneurship and Social Reality
• Entrepreneurial Marketing. SwanLeap’s Innovation & Collaboration
• Innovations and Researches in The USA
• Halal Cosmetic Products: Innovation Management
• Global Entrepreneurship and Innovation: Smart City
• Frugal Innovation: The Likelihood of Being Disruptive
• Spotify and Tencent QQ: Innovation in the Media Industry
• Huawei: Strategy of Aggressive Innovation
• Technology Innovation: Security of Payments
• Zensar Company’s Innovation & Change Management
• “Breaking Out of the Innovation Box” by J. Wolpert
• Chinese Space Program: Innovation and Value of the Proposed Experiments
• The Importance of Regulation in Financial Innovation
• Dynamic Innovation in Outsourcing Theories
• Organizational Culture, Innovation, and Performance
• Opportunities for Getting Funds for Innovations
• “Digital Innovation” by Deloitte Insights
• Innovation and Entrepreneurship in the Corporate Context
• Healthcare Technology: Groundbreaking Innovations
• Etisalat: Change as an Innovation
• Product-Marketing Innovation, Roles and Skillsets
• Grundfos: Harnessing Creativity and Innovation
• Florence Nightingale’s Innovation in Nursing Field
• PricewaterhouseCoopers Company’s Innovation
• American Democratic Political Model as an Innovation
• Procter and Gamble Company’s Innovation Strategies
• United Arab Emirates’ Innovation for People
• UAE Education, Transportation, Health Innovations
• Innovation, Leadership and Knowledge Management
• Effective Innovation Architecture in Organizations
• Jet Propulsion Laboratory’s Innovation Model
• Innovation in the Arab World
• “Principles of Innovation and Measuring Success” by Clay Christensen
• Product and Service Innovation: Thank-You Card Service
• The Role of Innovations
• Human Societies Evolution and the Role of Innovation
• Innovation and Diversity: Making Co-Existence Productive
• Augmented Reality and Innovations in Education
• Technology Company’s Innovation and Funding
• Procter & Gamble Company: Collaboration and Innovation
• Cultivating Innovation at IKEA Company
• “Post Crisis Innovation Will Rule” by Mary Sullivan
• W.L. Gore Company’s Culture of Innovation
• Marketing Innovation and Creativity in Service Firms
• Innovation in Organic Textile Producing
• Strategic Capabilities, Innovation and Performance of Service Firms
• Dramatic Elements and Innovations in Theater History
• Impact of Technological Innovations on Society
• Innovation Management in Healthcare Organisations
• Monsanto Weed Killer as a Harmful Innovation
• Big Companies’ Challenges in Trying to Promote Innovation
• US Army Air Corps’ Innovation During Interwar Period
• “Innovation Management” by Harrington and Voehl
• Creativity and Innovation Mobilization in Business
• Service Strategy and Innovation Alignment: Study Critique
• Diagnosing Innovation Readiness in Family Firms
• “What’s Your Best Innovation Bet?” by Schilling
• Social Sector as Beta Site for Business Innovation
• Open Innovation in Small and Medium-Sized Enterprises
• Uber Company: Innovation in Society
• “Imitation and Innovation” Book by Eleanor Westney
• Managing Innovation in Healthcare Organizations
• Disruptive Innovation in the Current Classroom
• The Right Balance between Open and Closed Innovation by Enkel
• Intuit Company Among Innovation Catalysts
• Disruptive Innovation and Non-Consumption
• Innovation in the UAE Border Control Industry
• Dubai Electricity and Water Authority’s Tech Innovations
• Industry 4.0: Technical and Social Innovation Interplay
• Innovation in Organizational Culture and Behavior
• Rivalry and Innovation for Company Performance
• Paperless Passports as a Product Innovation
• GreenIt Ltd.’s Entrepreneurship and Innovation
• Increasing Innovation and Impact on UAE Tourism
• UAE Family Firms’ Entrepreneurship and Innovation
• Technological Innovation in Law Enforcement
• Employee Creativity and Innovation in Organizations
• Innovation Leadership and Creativity in High-Tech
• Leveraging Intellectual Capital in Innovation Networks
• Siemens Company: Innovation and Leading Positions
• Quality and Timely Innovation: American Products & Services
• Innovation in Textiles: New Fabric
• The Impact of Social Media on Co‐Creation of Innovation
• Innovation Role in the UAE Economy
• Science and Innovation in Saudi Arabia Society
• Learning and Innovation Skills and Student Assessment
• Ford Company’s Innovation for Better Competition
• Nintendo Game Innovation: Wii’s Principles
• Dubai’s Innovation, Entrepreneurship and Economic Development
• Entrepreneurial Innovation in American Schoolhouse
• Fronterra Company’s Innovation Requirements
• Leading Innovation vs Leading Teams
• Uber Company’s Disruptive Innovation Business Model
• Disruptive Healthcare Innovations: Asynchronous Telepsychiatry
• Saudi Aramco Company’s Engineering Innovation and Ethics
• Education for Innovation and Independent Learning
• Innovation Importance in Company’s Competitive Advantage
• Alphacorp’s Innovation in Outsourcing Relationship
• Australian Green Building Innovation and Ethics
• Low Carbon Indigenous Innovation in China
• Why Innovation Is so Hard for Leaders?
• Genzyme’s Orphan Drugs and Innovation Management
• J.C. Penney’s Management Style and Innovation
• Sustainable Leadership and Innovation in Maritime Industry (DP World)
• Dixons Carphone Company’s Innovation
• Logistics Planning and Transportation Innovations
• Bond Innovation and Its Rationale
• Radical or Disruptive and Incremental Innovation
• Leadership for Creativity and Innovation
• Campbell Soup Company: Collaborative Innovation
• US and Brazilian Healthcare Innovation and Policy
• PlayStation Product: Innovation Analysis
• Silicon Valley’s Entrepreneurship and Innovation
• Innovation Development in Dubai Schools
• Principles of Innovation and Measuring Success
• The Eustachian Tube Disease and Innovation Treatment
• Labor Relation: Application of Innovation
• National Bank of Abu Dhabi Innovation
• Effective Use of Non-Incremental Innovations
• Diffusion of Innovations Theory in Education
• Apple Inc.’s Innovation: Search, Select, Implement
• IBM Innovation: Search, Select, Implement, Capture
• Successful Advertising and Innovation in Companies
• Company Innovation Shift to Experience Environments
• Performance Index and Quality Management Innovation
• The International Foods Group’s Innovation Plan
• Dubai Support of Innovation and Entrepreneurship
• National Response Corporation’s Creativity and Innovation
• The Internet as a Information Systems Innovation
• Innovations at the Roads and Transport Authority
• DP World’s Success, Innovation and Growth
• Innovation Maturity Models Comparison
• Innovation Maturity Models Concept
• Online Learning and Innovations in Pedagogy
• Dubai Customs and Innovation Management Maturity Model
• The Big-data Technologies: Value and Innovation
• Apple Company’s Design Thinking and Innovation
• Organizational Transformation and Promotion of Innovation
• Riordan Manufacturing’s Innovation Drivers
• Canadian Innovation Strategy and Policymaking
• Open and Closed Innovation: The Right Balance
• Android Platform and Diffusion of Innovations
• Darden Restaurants’ Innovation Strategy
• Google’s Innovation and Recruitment Management
• Canada’s Science, Technology and Innovation Policy
• Kinsmen Sports Centre: Marketing Metrics Innovation
• Spurring Socially Beneficial Pharmaceutical Innovation in Canada
• National System of Innovation’ Contributions
• Innovation in Global World
• Promoting Innovations in the Workplace
• Innovation Life Cycle: S-curve Technology
• Global Population Innovation and Sustainability
• Tradition and Innovation in the Academic Cognition World
• Music Special Innovation for the Physical Exercise
• Predicting Future Innovations in the Techno World
• Environmental Issues of Energy Innovations
• Cloud Storage: Modern Trends and Innovations
• Innovation, Revolution and Global Crisis
• Innovation Management in a B2B Context
• Apple Company: Led by the Power of Innovation
• Intelligence Technologies: Helpful Innovations or Threats
• Business Creativity and Innovation
• Management Issues: Business Innovation Decisions
• Innovation and Creativity in Organizations
• The Impact of Marketing Innovation and Creativity on Service Firms
• Innovation in Brazil: Organizations and Institutions
• Mapping the Innovation Process: Air New Zealand
• Mapping the Innovation Process at Etihad Airways
• Innovation in Various Companies
• Innovation Pessimism: Has the Ideas Machine Broken Down?
• Technological Innovations for New Methods of Production
• Innovation of Diffusion on ‘Eco-Friendly Bags
• ”Good Planning Is the Key to Learning and Innovation in Organization”
• Innovation and Creativity Cannot Be Developed in an Organization
• Innovations in the Cell Phone Industry and Sustainability
• Wal-Mart’s Innovative Operations & Strategies
• Generic Toolkit for Implementing a Web-Based Product Innovation Strategy for Zara Fashion Retailer
• Managing Innovations and Entrepreneurship
• Value Innovation Strategy
• DPI Strategy Implementation in the Present-Day Environment: Disruptive Innovation Saves the Day
• Managing Innovation for Business
• Importance of Open Innovation in Firm Development
• Maintenance Management Systems Innovation
• Innovation at Philips Lighting
• Technology Innovation: The Theft Prevention Chip Enterprise
• Collaboration Technology and Innovation
• How Can Innovations Sustain Brands?
• Product Innovation and Management
• Change Management and Innovation Promotion
• Saudi Aramco Organisational Innovation
• Innovation in Business Development
• Nypro Inc’s Innovation Model
• Assessment of Innovation in Organisations
• Marketing Design and Innovation: Smart TV’s
• Innovations in Healthcare Service Delivery
• Business Management and Social Innovation
• Business Strategies to Ensure Innovation
• LLB Entrepreneurship and Innovation
• Entrepreneurship and Innovation: The United Arab Emirates
• Culture and Innovation in the Palladium Group
• Exploitation of Innovation Within an Organization
• Managing projects for innovation and enterprises
• A Process for Practicing Design Innovation
• Product Innovation in Business Organizations
• Radical Innovation Barriers
• SONY’s Eco Innovation for Televisions: A Memo
• The Importance of Innovation in International Business
• How to Measure Innovation: DUBAL Company
• Master Blenders: Entrepreneurship and Innovation Management
• U.S. Auto Industry: Innovation and Profitability
• Event Industry: Entrepreneurship and Innovation
• Innovation Enterprise and Winning the Bid – Business Plan
• How innovation happens: The ferment of finance
• Entrepreneurship, Innovation in Dynamic Business World
• Entrepreneurship, Innovation & Dynamic Capitalism
• Product and Service Design and Innovation from the Marketing
• Leading Innovation and Change Management
• ”The Role of Innovation in Achieving Competitive Advantage”
• How innovation add value to hotels
• Reflective Thinking: The Power of Innovations. Using Brand New Ideas
• Service Management of Innovation Tourism Industry
• Effective Leadership and Innovation
• Culturally Bound Innovation in Romanian Clinic and Research Hospital
• Leadership and Innovation in the Business
• Organizational Development: Motivation, Communication, and Innovation
• Wrigley’s Innovation in China’s Confectionary Market
• Innovation in the Service Industry
• Irizar’s Knowledge Management
• Innovation, Change and Leadership
• Market Orientation, Product Innovation and Market Performance: the Case of Small Independent Companies
• The Innovator’s Dilemma: Open Innovation or Discontinuous Innovation
• Innovation and Its Impacts on the Financial Performance of Businesses
• Business Innovation and Strategy
• The Community Employment Innovation Project (CEIP)
• CarMax: Sales Revolution Through Innovation
• Innovation Planning and Design Process
• What New Media Will Look Like in 2023: A Time Travel Into the Era When Innovations Clash With Ownership Issues
• Sustained Incremental Innovation
• Technological Innovations in Mining and Metallurgy and Textile Manufacturing Industries in Medieval Europe
• Rexona Product Innovation
• Team Work and Product Innovation
• Bureaucracy is the Best Way to Deliver Change and Innovation in an Organization
• Innovation and New Products
• Article Summary: “Growth: The great innovation debate”
• Managing Quality, Innovation and Knowledge
• The Use of Modern Innovations in the Production of Commodities
• Entrepreneurship, Creativity and Innovation
• Innovation for Global Relationships Management
• Managing Change and Innovation in Worley Parson
• Globalisation, Innovation, and Change
• Diffusion of innovation
• Discussion about diffusion of innovation
• Innovation: Instagram (App)
• Sustainability and Innovation
• Wireless Technologies on Their Way: The Essence of Innovations
• Pharmaceutical Innovation: Can We Live Forever? A Commentary on Schnittker and Karandins
• Innovation and Change in Business
• Management Change and Innovation
• Change and Innovation at the Coca-Cola Company
• Organizational Change Management: Culture, Development and Innovation
• “Growth and Innovation” by Canadian Business Network
• IT Innovation and Its Impact on Business
• How Characteristics of Innovation Affect Success of a Product
• Improvement, Integration and Innovation
• Challenges of Innovation Activities in Hotels to Increase Business
• Blue Ocean Simulation: Innovation in New and Existing Firms
• Strategic Innovation and Technology Management
• Compare Japanese and USA National Innovation systems
• Innovation and Creativity in Marketing frozen vegetable
• Managing Innovation
• National innovation system in Germany last 20 years
• How innovation leads to economic development
• Change, Creativity, and Innovation
• Innovation and Control in IT Companies
• Nokia Company Innovation and Change Management
• Machiavelli and a Notion of Virtue as an Innovation
• Healthcare Innovation: Ground Source Heating & Cooling Equipment
• Initiating Innovations: Bill Gates and Benjamin Franklin
• Product Innovation and Pricing
• Facebook: Change and Innovation
• Innovation around the Globe
• Keeping in Pace With the Innovations: Lifelong Learning of the Material Science and Engineering Development
• Networking, Collaboration, Leveraging Innovation and Your Profession as a Field of Service to Community
• Cultural Innovations: An Archaeological Examination of Prehistoric Economics, Agriculture and Family Life
• Playing with Fire: Financial Innovations during the Crisis
• How Does Implicit Knowledge Transfer Influence Innovation Speed?
• How Does Knowledge Management Influence Innovation and Competitiveness?
• How Does Tight Control Stifle Creativity Innovation?
• Does Culture Drive Innovation and Export Quality?
• Can Business Development Services Practitioners Learn From Theories on Innovation and Services Marketing?
• Can Human Innovation Greatly Minimize the Impact of Earthquakes?
• How Does the Entrepreneurship Education Influence the Students’ Innovation?
• Can Companies Maintain Their Initial Innovation Thrust?
• Are Product Innovation and Flexible Technology Complements?
• How Does Service Innovation Influence the Performance of a Company?
• Does Combinatorial Knowledge Lead to Better Innovation Performance of Firms?
• Does Competition Spur Innovation?
• Does Deregulation Drive Innovation Intensity?
• Can Financial Innovation Succeed by Catering to Behavioral Preferences?
• Can Innovation Help U.S. Manufacturing Firms Escape Import Competition From China?
• Can Environmental Innovation Facilitate Carbon Emissions Reduction?
• How Does Timing and Positioning Affect Innovation?
• How Does Innovation Affect Worker Well-Being?
• Can Formal Innovation Training Improve Group- And Organizational-Level Innovativeness?
• How Does Openness Affect the Importance of Incentives for Innovation?
• How Does the State Destroy Incentives in Innovation Financing?
• Does Democracy Cause Innovation?
• How Does the Global Network of Research Collaboration Affect the Quality of Innovation?
• Are Organizational Innovation Practices Complements or Substitutes for Technological Innovation Performance?
• Are Regulation and Innovation Priorities Serving Public Health Needs?
• Are There Learning Agents in Innovative Firms?
• How Does Innovation Operate as a Knowledge Creation and Transfer Process?
• Does Cultural Diversity Help Innovation in Cities?
• Can Financial Innovation Help to Explain the Reduced Volatility of Economic Activity?
• Are Trade Marks and Patents Complementary or Substitute Protections for Innovation?
• Interpretation Research Topics
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• Consciousness Ideas
• Competitive Strategy Research Ideas
• Consumer Protection Questions
• Fashion Design Topics
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IvyPanda . "544 Innovation Essay Topics & Examples." February 25, 2024. https://ivypanda.com/essays/topic/innovation-essay-topics/.