Successful innovation is all about operationalization. The good news is that the path to operationalizing innovation looks remarkably similar for all financial institutions (FIs).
Whether FIs are big or small, operationalizing innovation comes down to executing on the same four key tenets, starting with making innovation a mindset. FIs must take this mindset and bring it into every aspect of their processes, operationalizing it to align with a tangible business agenda and inform the other three innovation tenets: making innovation about the customer, making it accountable and making it relevant.
Though the four key components may seem straightforward, as with many things, the devil is in the details. What does it mean to make innovation a mindset, in concrete terms? What does it mean to make innovation about the customer — or to make it accountable or relevant?
In short, the answer is operationalization. FIs need to think of innovation less as an isolated project, and more as a continual process. And, to keep that process going, FIs need to regularly collect market feedback to ultimately optimize their consumer experience.
PYMNTS, in collaboration with i2c, surveyed more than 200 FIs to shed light on the strategies of the financial industry’s best innovators, covered throughout the Innovation Readiness Playbook series since it rolled out last fall. Now, in the series’ capstone edition, PYMNTS combines the survey findings from the first five playbooks to generate a comprehensive blueprint for implementing an effective innovation strategy.
Additional key takeaways of the capstone edition playbook include:
- 53 percent of Top Performers have core payment processing systems that are multifunctional
- 80 percent of Top Performers focus innovation efforts on making new features for existing products
- 91 percent of firms that use sandbox technology rate their latest innovations as "very" or "extremely" successful
To find out more about what FIs must do to be competitive innovators, click here to download the report.
About The Playbook
The Innovation Readiness Playbook series, in collaboration with i2c, gauges where banks are on the road to becoming innovators. PYMNTS collected and analyzed survey data on more than 200 FIs to learn what makes the best innovators what they are, exploring select elements in each of six editions. This capstone contains a comprehensive guide to designing and implementing a successful innovation strategy.
Inside The FI Payments Innovation Agenda Edition
- 53 percent of top-performing FIs plan to focus on consumer engagement in the next three years
- 91 percent of FIs that use sandbox technology rate their latest innovations as "very" or "extremely" successful
- 67 percent of top-performing FIs say they consider increased revenue per customer as a way to measure ROI for a new innovation
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