Innovation Of The Banking Industry : A Study Essay examples

786 Words Oct 4th, 2016 4 Pages
Innovations in the Banking Industry: A Study

1. Introduction
Financial innovation is the act of creating new financial products, technologies, institutions, markets, processes and models according to the changing situations. Financial innovation includes innovation in the financial environment. Innovation means creating new things or old things in a new way. In reality, There is a vast range of different financial products and processes that financial institutions use in their processes, investors use to mitigate the risk. Banking firms are now using innovation in its services. In 1990s, Indian banking sector realized the need of modernization of the services. Over the years, the banking sector in India has seen a number of changes. Most of the Indian banks have adopted an innovative approach to cater the needs of the public. Banks are now using technology in catering the needs of the customers. Financial innovation helps to reduce the cost of transactions, better allocation of resources and speedy settlement. Now all the banks have started with the concept of multi- channels, like ATMs, credit cards, debit cards, telephone/mobile banking, internet banking, call centers, etc. The role of banking is redefined from a mere financial intermediary to service provider of various financial services under one roof acting like a financial supermarket.(1)
2. Literature review
The advancement of new technology is the main reason of innovation in banking services. The scenario…

Related Documents