Commenced in January 2007
Frequency: Monthly
Edition: International
Paper Count: 30685
Introducing Successful Financial Innovations: Rewriting the Rules in Light of the Global Financial Crisis

Authors: Abdel Aziz, Hadia H.

Abstract:

Since the 1980s, banks and financial service institutions have been running in an endless race of innovation to cope with the advancing technology, the fierce competition, and the more sophisticated and demanding customers. In order to guide their innovation efforts, several researches were conducted to identify the success and failure factors of new financial services. These mainly included organizational factors, marketplace factors and new service development process factors. They almost all emphasized the importance of customer and market orientation as a response to the highly perceptual and intangible characteristics of financial services. However, they deemphasized the critical characteristics of high involvement of risk and close correlation with the economic conditions, a factor that heavily contributed to the Global financial Crisis of 2008. This paper reviews the success and failure factors of new financial services. It then adds new perspectives emerging from the analysis of the role of innovation in the global financial crisis.

Keywords: Financial Innovation, Global Financial Crisis, lessons learned from global financial crisis, success factors in financial innovation

Digital Object Identifier (DOI): doi.org/10.5281/zenodo.1333897

Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 1272

References:


[1] Frame, W. Scott & White, Lawrance J. (2002). "Empirical studies of financial innovation: lots of talks, little action?" Federal Reserve Bank of Atlanta. Working Paper 2002-12.
[2] Gardner, Edward, Howcroft, Barry & Williams, Jonathan (1999). "The new retail banking revolution". The Service Industries Journal, Vol. 19, No. 2, 83-100.
[3] Oldenboom, Nicola & Abratt, Russell (2000). "Success and failure factors in developing new banking and insurance services in South Africa". International Journal of Bank Marketing. 18/5: 233-245.
[4] Spitler, Rick (2005). "The new survival skills". ABA Banking Journal, Vol. 97, Issue 2, 58-61.
[5] Alam, Ian & Perry, Chad (2002). "A customer oriented new service development process". Journal of Services Marketing, Vol. 16, 515-534.
[6] Shah, Anup (2009). "Global financial crisis 2008". Retrieved on January 2009 from http://www.globalissues.org/article/768/global-financialcrisis
[7] Global financial crisis: responding today, securing tomorrow (2008). Background Paper: The World Bank Group
[8] Voss, C.A. (1992). "Measurement of innovation and first mover advantage". Journal of Applied Corporate Finance, Vol. 5, No. 1, pp. 83- 7.
[9] Johne, Axel & Storey, Chris (1998). "New Service Development: a review of the Literature and Annotated Bibliography". European Journal of Marketing. Vol. 32, No. 3/4, 184-251.
[10] Edgett, Scott & Snow, Kim (1997). "Benchmarking measures of customer satisfaction, quality and performance for new financial service products". Journal of Product and Brand Management, Vol. 6, No. 4, 250-259.
[11] Storey, Christopher & Easingwood, Christopher (1996). "Determinants of new product performance, a study in the financial services sector". International Journal of Service Industry Management. Vol. 7 no. 1: 32- 55.
[12] Meidan, Arthur (1996). Marketing financial services. Great Britain: Antony Rowe Ltd.
[13] McGoldrick, Peter J. and Greenland, S.J. (1994). Retailing of financial services. McGraw Hill book Co, London.
[14] Cowell, Donald W (1988). "New service development". Journal of Marketing Management. Vol. 3, No. 3: 296-312.
[15] Martin JR, Claude R & Horne, David A. (1995). "Level of success inputs for service innovation in the same firm". International Journal of Service Industry Management, Vol. 6, No. 4: 40-56.
[16] Laurino, John A (1993). "Developing your own niche". Bank Marketing. Vol. 25, Issue 7, p.2.
[17] Lasheen, Abdel Aaty (1992). "Tasweek al khadamat al masrefia". Unpublished Masters Thesis. Cairo University. Egypt (in Arabic).
[18] Costanzo L.A., Keasey, K. & Short, H. (2003). "A strategic approach to the study of innovation in the financial services industry: the case of telephone banking". Journal of Marketing Management. Vol. 19: 259- 281.
[19] Andrew, Kenneth (1986). The Bank Marketing Handbook. Woodhead- Faulkner Ltd. England.
[20] Demoranville, Carol W., Kaminski, Peter, Ridnour, Rick E. & Young, Tom (1999). "How Sandwich State Bank took a market orientation to face the changes in traditional community banking". Journal of Retail Banking Services. Vol. 21 Issue 2.
[21] Bortree, William H (1991). "Consumer input: the key to new product success". Bankers Magazine. Vol. 174, Issue 2, 14-20.
[22] El Khodeiry, Mohsen Ahmed (1999). El Tasweek al Masrafy. Cairo: Itrac Publishing and Distribution Company (in Arabic).
[23] Lievens, Annoul; Moenaert, Rudy K; & S'Jegers, Rosette (1999)." Linking communication to innovation success in the financial service industry: A case study analysis". International Journal of Service Industry Management. Vol. 10, No.1: 23-47.
[24] Gentle, Chris & Contri, Bob (2005) "Glittering Prize: How Financial Institutions Can Drive Growth through Process and Service Innovation", Deloitte Research.
[25] BAI, UNISYS & Wharton Financial Institutions Center (2001). Competition, innovation and strategy in the financial services industry. http// www.ai.org/competition (2004).
[26] Harris, Lisa (2002). "The learning organization - myth or reality. Examples from the UK retail banking industry" . The Learning Organization, Vol. 9, No. 2 pp. 78-88.
[27] Stuart, F. Ian (1998). "The influence of organizational culture and internal politics on new service design and introduction". International Journal of Service Industry Management. Vol. 9 No. 5: 469-489.
[28] Sciulli, Lisa M. (1998). "How organizational structure influences success in various types of innovation". Journal of Retail Banking Services. Vol. 20 Issue 1.
[29] Edgett, Scott (1994). "The traits of successful new service development". Journal of Service Marketing, Vol. 8 No. 3: 40-49.
[30] Edgett, Scott & Parkison, Steven (1994). "The development of new financial services: identifying determinants of success and failure". International Journal of Service Industry Management. Vol. 5 No. 4: 24- 38.
[31] Frei, Frances X., Harket, Patrick T. & Hunter, Larry W. (1998). "Innovation in retail banking". http// fic.wharton.upenn.edu/fic/forumpapers.html
[32] Harborne, Paul & Johne, Axel (2002). "Many leaders make light work in banking innovation projects". Journal of Financial Services Marketing. Vol. 6 issue 3: 267-280.
[33] Cooper, Robert G. & Edgett, Scott J. (1996). "Critical success factors for new financial services". Marketing Management. Fall 1996 : 26-37.
[34] Avlonitis, George J. & Papastathopoulou, Paulina (2001). "The development activities of innovative and non innovative new retail financial products: implications for success" Journal of Marketing Management. Vol. 17: 705-738.
[35] Abdel Aziz, Hadia H. (2008). Factors Affecting Customers-- Decisions to buy New Retail Banking Services: Their Implications on the New Service Development Process, Pertelang GmbH, Frankfurt.
[36] Zahn, E, Foschiani, F. Lienhard, P. & Meyer, S. (2003). "Kundenorientierte servicestrategien f├╝r hybride produkte". in: Kersten, W. (Hrsgj: E-Collaboration ÔÇö Prozessoptimierung in der WertschUpfungs kette, Wiesbaden, 2003, S. 133-157.
[37] Scheuing, Eberhard E. & Johnson, Eugene M (1989). "A proposed model for new service development". The Journal of Services Marketing. Vol. 3, No. 2: 25-34.
[38] "The global financial crisis" (2008). Edited Text of an address by Angel Gurria. New Zealand International Review. pp. 17-20.
[39] "It started like 1929" (2008). Societe Generale Cross Assets Research. The Societe Generale Group.
[40] Foo, Check-Teck (2008). "Conceptual lessons on financial strategy following the US sub-prime crisis". The Journal of Risk Finance, Vol. 9, No. 3, pp 292-302.
[41] Orlowski, Lucjan T. (2008). "Stages of the 2007/2008 global financial crisis: Is there a wandering asset- price bubble?" Discussion Paper in: Economicshttp://www.economics-ejournal.org/economics/ discussionpapers/2008-43
[42] Stiglitz, Joseph (2008), "The fruit of hypocrisy: Dishonesty in the finance sector dragged us here, and Washington looks ill-equipped to guide us out", The Guardian, September 16, 2008.