Innovation in China's Financial Services Industry
For several systemic reasons the study puts forth, innovation in financial institutions pales in comparison to the level of innovative activity in other industries. And if there are innovative approaches, they are usually most likely to originate from large institutions such as Goldman Sachs, JP Morgan Chase or Deutsche Bank. In China, however, some small to mid-size financial institutions are also quite active (and successful) in innovation, as the study shows.
The authors assessed the innovation performance of Chinese financial institutions along four dimensions: product innovation, channel innovation, marketing innovation, and management innovation. As an alternative to isolated or haphazard attempts at innovation they recommend the innovation factory model as full-blown innovation system. Since companies using this model put innovation at the core of their competitiveness, the innovation factory model is still most widely pursued by digital and internet companies.
The whitepaper explains how to build an innovation model in a systematic manner and provides insights and examples of how businesses embrace an innovation culture. "There is already a significant level of innovation happening at Chinese financial institutions," says Alain Le Couédic. "But there is also much more to do: innovation is clearly seen by domestic players as a key success factor in China's financial services landscape, where competition is getting fiercer and differentiation remains a challenge."