Innovation in Financial Services 2015: Reaching the Next Level

by Michael Fitzgerald, November 2, 2015
Industry Trends
Global

Abstract

Significant investment is being made in innovation programs. According to financial services professionals, what works and what doesn’t?

Financial services professionals recognize that innovation in new business models and improved customer experience are critical to future success. This research examines current efforts in innovation in banks and insurers in detail. It analyzes 101 responses to a global survey of industry participants conducted in Q4 of 2015. The results provide guidance to firms that have launched initiatives and to those that are considering investment in formal innovation programs.

“There is now little doubt about the ‘why’ of innovation,” says Mike Fitzgerald, a senior analyst with Celent’s Insurance practice and author of the report. “Vast investments are being made in incubators, accelerators, labs, and other programs. The data from this survey identifies the most significant barriers to successful innovation and suggests interventions to address them.”

A comparison of these latest responses with the 2013 data indicates that innovation is increasingly critical to business strategy. However, a gap remains between the need for innovation to satisfy customer expectations and its importance to company strategy. This report provides examples of how leading firms are bringing these dimensions in line.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned subsidiary of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

1

Introduction

3

 

Key Research Questions

3

The Link to Strategy

4

Competitive Analysis

7

 

Comparison with Other Industries and Other Financial Services Firms

7

Innovation Execution

10

 

Program Characteristics

10

 

Program Results (A Report Card)

12

Organizing for Action

15

 

Tools and Techniques

15

 

Organizational Adjustments

17

 

Promoters (and Detractors) of Innovation

19

Moving Forward with Innovation

20

 

Breaking Through the Barriers

20

The Path Forward

22

 

Recommendations

22

Appendix

24

 

Survey Demographics

24

Leveraging Celent’s Expertise

26

 

Support for Financial Institutions

26

 

Support for Vendors

26

Related Celent Research

27

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