Financial institutions 'Should Innovate from Within, Not via Labs'

by Edward O'Brien 0

Some financial institutions, daunted by the challenges posed by nimble financial technology start-ups, have been using “innovation laboratories” to help speed up their transformation into digital businesses.

But analysts at research firm Forrester have called this approach into question, arguing that it is better if innovation comes from within.

They said payment solutions, investment products and other services prototyped in labs often face cultural, structural and procedural barriers during implementation.

While innovation labs and other development processes are appropriate in many cases, banks and credit unions should still rely heavily on their knowledge of their customers and members to gauge the appropriateness of new solutions. The voice of the customer must be heard and understand by all on development and user experience teams, as this input is critical in creating an outstanding experience for customers and members.

Overview by Ed O’Brien, Director, Banking Channels Advisory Service at Mercator Advisory Group

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