Innovations in Financial Services - A Bird’s Eye View
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Date
2015
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Abstract
Today the contribution of services to the economy is ever growing. Services are characterized by their
intangible nature as well as the joint involvement of the producer and the consumer for the service to
be enacted. Rapidly advancing technologies, evolving customer expectations and a changing
regulatory landscape are opening doors to innovation in financial services. Financial innovation is
both complex in character and inherently relevant to economic growth, and full understanding of it
requires the collaboration of experts and scholars in many fields of research, including economics,
finance, marketing, law and technology. Nevertheless, innovation in financial services remains under
investigated and it deserves careful attention, especially since the world is currently going through a
period of economic slowdown. Innovation in financial services is very different than innovation in a
physical product environment. It is a structural approach that is needed, with a continuous attention to
skills development and a multidisciplinary team. Two categories of innovations are - product and
process innovations. The former are exemplified by new derivative contracts, new corporate securities
or new forms of pooled investment products, while the latter are typified by new means of distributing
securities, processing transactions or pricing transactions.' ‘
For the financial services industry to be truly sustainable, it needs to praetiee finaneial inclusion in
embracing online technologies and mobile applications so as to be well plaeed to ride this emerging
trend of digital banking to serve the corporate, mass affluent customers & high net worth individuals
at large. This could well represent huge online opportunities for the industry as a whole.