Technology-Driven Service Innovation in the Banking Industry

Business-to-business and consumer-to-business transactions in the banking industry have witnessed a dramatic shift in the method of payment over the last two decades. This rapid growth had been initially fuelled by the early adoption of electronic payments such as credit and debit cards but now with the advent of mobile and internet technologies, non-cash transactions have grown even more rapidly. These technological developments have spurred a range of service innovations within the banking industry that has not only improved consumer convenience and reduced staffing and bank operating costs, but also increased the need for greater vigilance around security and fraud detection. This rapidly changing technology is also facilitating the entry of new payment providers in the financial sector with innovative products to meet the changing needs of consumers and businesses. The consequence is a rapidly changing banking industry.