This question intents to get variables which can be use to measure innovation in banks and how they contribute to banks' profitability.
Annual R&D budget as a percentage of annual sales
Number of patents filed in the past year
Total R&D headcount or budget as a percentage of sales
Number of active projects
Number of ideas submitted by employees
Percentage of sales from products introduced in the past X year(s)
Use of online banking services by the bank and the cost associated with it.
Research and development activities cost based annual revenue.
Use of debit and credit cards by the customers in daily activities.
Inclusivity ie Financial inclusion refers to efforts to make financial products and services accessible and affordable to all individuals and businesses, regardless of their personal net worth or company size (Investopedia, 2021).
Mobile money/banking is a good innovation as some countries in Africa, ATMs are idle and risk becoming obsolete. This provides a very easy way for customers to transact.
Hello. I have some answers for you.
1. Volume of transactions on bank digital channels
2. Number of users of bank apps to conduct personal banking activities
Some variables related to or built from the annual R&D expenses
Measuring the spending made by Banks in:
- Pure R & D;
- Stimulating staff to engage in perojects of innovation;
- Banks' spending compared to the metrics in other industries.
- Ebncouraging innovation high flyers within their ranks;
- Outsourcing as well as monitoring of innovation projects or ideas.
Dr. John Consiglio
Dept of Banking Nd Finance,
The University of Malta.
Banks who have mobile/internet banking where clients may view their accounts , check their transaction history, pay their bills, do checkbook requisition without the need to personally go to the bank is considered innovation.