Innovating in a downturn
Written by: Previous staff on 8 May, 2009There is an excellent article in the latest issue of Computing about the impact of the downturn on the ability of financial services firms to innovate. Although one might think that the economic slowdown would impact negatively on the levels of innovation occurring, it’s clear that many firms realise the benefits of investing in new or existing ideas to help push their businesses forward during these difficult times.
The three ‘innovation winners’ highlighted in the article are mobile banking, customer networking and ‘un-sexy innovation’. The last of these can be summed as efficiency projects that, although they don’t grab the headlines, improve the customer experience and deliver results. In light of some of the results announced this morning, this would be a wise move.
One area that is not covered by the article is the impact of regulation on the financial services sector. As I have noted before on this blog, recent months have seen a flurry of consultations on regulatory matters, all of which will be turned into rules which will need to be complied with. As a result, firms will need to literally spend millions of pounds to ensure compliance. More often than not, I think it is fair to say (to put it lightly) that this expenditure is not equivalent to the commercial development of a similar product(s). However, this expenditure, as firms tweak and overhaul existing systems, can achieve a lot more than box-ticking compliance as they work with their suppliers to maximise the impact of this investment to give it a greater commercial focus, hopefully delivering better value for shareholders and, for the customer, a better banking experience.
Tags: Financial Services, Innovation