Canadian financial institutions struggle with long-term innovation strategies: PwC

According to the survey, 33% of Canadian executives are focused on technology innovation while only 11% of firms made changing the overall customer experience a priority. The danger in focusing on one aspect of technology is that clients tend to use several different digital and mobile platforms to research investments and contact their financial services firms.

Instead of concentrating on one aspect of technology such as the development of a mobile app, says John MacKinlay, financial services consulting and deals leader, PwC, firms need to make sure that app is integrated with other technology platforms within the organization, such as online banking or a call centre.

“Mobile [banking] has really taken off the last couple of years since most organizations, banks, have introduced a mobile platform,” says MacKinlay, “but what’s so key is that it’s an integrated customer experience across all those channels.”

As well, many respondents say the Canadian financial services sector isn’t as innovative as its global peers because of ongoing challenges in the industry. Survey results show that 22% of respondents say retaining talent is a challenge to innovation, followed by 17% who say simply measuring innovation success is difficult. Another 28% say that it’s hard for firms to implement support structures and sustain innovation initiatives.

In part these challenges are created by the current structure of the financial services industry, according to Karen Forward, director, financial services, PwC. For example, financial services organizations often have more complex processes than firms in other industries, she says, while regulatory pressures can sometimes discourage executives from moving forward with a new initiative.

Says Forward: “To actually implement change and innovation is often just a little bit harder than perhaps in some other industries.”