Editorial & Advertiser disclosure

Global Banking and Finance Review is an online platform offering news, analysis, and opinion on the latest trends, developments, and innovations in the banking and finance industry worldwide. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.

Banking

THREE STEPS FOR DRIVING INNOVATION IN RETAIL BANKING

Published by Gbaf News

Posted on March 24, 2014

Featured image for article about Banking

Professor Walter Van Dyck of Vlerick Business School says retail banks are some of the slowest innovators. He suggests there are three crucial steps these institutions need to take to keep ahead of the innovation curve.

1. Develop partnerships across sectors

The ultimate advantage will come from connecting across sectors. Imagine a bank working with a real estate agency on innovating solutions for their market. Expand the ecosystem beyond your arena and you come across disruptive ideas.

2. Utilise data analytics and ISPs to understand the customer

Banks need to further refine their segmentation in order to better understand the customer. It is essential that they work with data analytics companies and service providers. Whilst the former will give them insight into what the customer wants, the latter will connect them to the customer.

3. Asset optimisation

Professor Walter Van Dyck Of Vlerick Business School

Rather than having R&D departments, banks have service operations and a client base. In order to maximise their potential, they have to move beyond optimising their assets by improving (i.e. procure faster servers and better computers) and start optimising by innovating. Developing genuinely innovative IT-enabled customer facing processes would be a good place to start.

Professor Van Dyck says: ‘’The service based ecosystem is far behind other innovation ecosystems particularly because it only recently started innovating. In this industry banks in particular are known for being traditional and this is the reason why they have fallen behind the innovation curve. The key is to look outside of your ecosystem and think of smart product combinations. The iPhone disrupted the market simply because it facilitated smart partnerships and product combinations – its technology was not that innovative.’’