The University of Southampton
University of Southampton Institutional Repository

A strategic approach to the study of innovation in the financial services industry: the case of telephone banking

A strategic approach to the study of innovation in the financial services industry: the case of telephone banking
A strategic approach to the study of innovation in the financial services industry: the case of telephone banking
During the 1990s the introduction of new technology, and in particular of low cost delivery channels, has accelerated the pace of innovation taking place within the UK financial services industry and has created a need for a more strategic approach to the study of innovation within this industry. In this paper, the case study of telephone banking is used to describe the main aspects of strategies adopted by the first and second movers, when implementing this delivery channel. It shows that the successful innovator – First Direct – adopted the logic of ‘value-innovation’, whilst the second movers have followed the ‘conventional’ logic. In contrast with previous studies, the strategic approach applied in this case study also reveals that differentiation in the financial market place is not achieved with the implementation of distribution channels or just technology, but bringing to the market ‘unprecedented value’. Finally, the implications for the general theory of innovation in relation to financial services organisations are highlighted.
innovation, market positioning, strategic management, differentiation, banking industry
0019-8501
259-281
Costanzo, L.A.
bce28c22-8b70-4176-b523-4e2f59169baf
Keasey, K.
6ca80d97-54ad-4c14-8aa1-7675529b76d4
Short, H.
da998a0c-bb1e-4c0c-a963-5585d8a0f26f
Costanzo, L.A.
bce28c22-8b70-4176-b523-4e2f59169baf
Keasey, K.
6ca80d97-54ad-4c14-8aa1-7675529b76d4
Short, H.
da998a0c-bb1e-4c0c-a963-5585d8a0f26f

Costanzo, L.A., Keasey, K. and Short, H. (2003) A strategic approach to the study of innovation in the financial services industry: the case of telephone banking. [in special issue: Marketing to Children] Journal of Marketing Management, 19 (3-4), 259-281. (doi:10.1080/0267257X.2003.9728211).

Record type: Article

Abstract

During the 1990s the introduction of new technology, and in particular of low cost delivery channels, has accelerated the pace of innovation taking place within the UK financial services industry and has created a need for a more strategic approach to the study of innovation within this industry. In this paper, the case study of telephone banking is used to describe the main aspects of strategies adopted by the first and second movers, when implementing this delivery channel. It shows that the successful innovator – First Direct – adopted the logic of ‘value-innovation’, whilst the second movers have followed the ‘conventional’ logic. In contrast with previous studies, the strategic approach applied in this case study also reveals that differentiation in the financial market place is not achieved with the implementation of distribution channels or just technology, but bringing to the market ‘unprecedented value’. Finally, the implications for the general theory of innovation in relation to financial services organisations are highlighted.

This record has no associated files available for download.

More information

Published date: March 2003
Keywords: innovation, market positioning, strategic management, differentiation, banking industry
Organisations: Southampton Business School

Identifiers

Local EPrints ID: 378112
URI: http://eprints.soton.ac.uk/id/eprint/378112
ISSN: 0019-8501
PURE UUID: 57adc7a2-e257-4402-922d-ec3f4659182d
ORCID for L.A. Costanzo: ORCID iD orcid.org/0000-0002-7197-6778

Catalogue record

Date deposited: 16 Jun 2015 15:46
Last modified: 23 Jul 2022 02:08

Export record

Altmetrics

Contributors

Author: L.A. Costanzo ORCID iD
Author: K. Keasey
Author: H. Short

Download statistics

Downloads from ePrints over the past year. Other digital versions may also be available to download e.g. from the publisher's website.

View more statistics

Atom RSS 1.0 RSS 2.0

Contact ePrints Soton: eprints@soton.ac.uk

ePrints Soton supports OAI 2.0 with a base URL of http://eprints.soton.ac.uk/cgi/oai2

This repository has been built using EPrints software, developed at the University of Southampton, but available to everyone to use.

We use cookies to ensure that we give you the best experience on our website. If you continue without changing your settings, we will assume that you are happy to receive cookies on the University of Southampton website.

×