Banking Innovations

Paper Summary:

The paper explains that institutions that develop a constant flow of innovation remain competitive in today's evolving global environment, particularly in the banking sector. The paper examines the existing literature of financial innovation and more specifically, the drivers of innovation in the retail banking sector. Finally, the paper suggests considerations for further research.

Outline:
Abstract
Innovation in the Financial Sector
Drivers Noted in the Existing Literature
Further Research Regions

From the Paper:

"As existing literature reviews the financial industry (see for example Fagerberf 2004, Tufano 2002 and Frame and White 2004 Frei, Harker and Hunter (1998)), it focuses on financial innovations such as financial instruments and derivatives products. These studies explore innovation from the economist's point of view and focus on the relative conditions. This contrasts with the attention paid by companies, albeit where innovation is considered "very important," as well as a priority for the next 2 years (BAI survey , 2006). This concept also disparages new positions created as Chief Innovation Officer, formed in banks such as Bank of New York. The industry, nevertheless recognises banks' efforts with the presentation of awards to the most innovative banks and/or products and services."

Sample of Sources Used:

• Akhavein, Jalal, Frame, W. Scott, and. White, Lawrence J.. "THE DIFFUSION OF FINANCIAL INNOVATIONS: AN EXAMINATION OF THE ADOPTION OF SMALL BUSINESS CREDIT SCORING BY LARGE BANKING ORGANIZATIONS," August 2001. Retrieved 28 May 2007 from: http://www.phil.frb.org/econ/conf/innovations/akhavein_frame_white.pdf.
• Carrns, Ann. "Banks court a new client: The low-income earner." The Wall Street Journal, Associated Press Financial Wire, March 16, 2007.
• Cobb, Bob. "Resetting the Sales Culture: Changing how your bankers view their customer q interactions is the key to unlocking a wealth of referrals.: Bank Investment Consultant, May 1, 2007.
• "Community bankers are spending more on employee training." Bank Marketing, May 1, 2005.
• Dynan, Karen E., Elmendorf, Douglas W. and Sichel, Daniel E.. "Can Financial Innovation Help to Explain the Reduced Volatility of Economic Activity?" Federal Reserve Board, November 2005. Retrieved 28 May 2007 from: http://www.federalreserve.gov/pubs/feds/2005/200554/200554pap.pdf.

More papers on Banking Innovations:

• Analytical Essay # 144424 : "Canadian Banking"
• Analytical Essay # 142592 : "Retail Banking"
• Research Paper # 106549 : "Performance Appraisal System in Banking in India"

APA Citation:

MLA Citation: