A service innovation is a new service product or a clearly differentiated customer-experience booster that is based on some invention, new technology, innovative design, and/or a systemic creative-synergy output.

In services, an empathetic human touch is highly important. A technological novelty is thus not enough to make a firm a legendary service innovator. The most impactful part of service innovation lies in the non-technological areas.

Why is service innovation important?
A service innovation changes the way customers are served to create value for customers and revenue for the company. Through a new service innovation, a company may increase its revenue due to existing customers spending more, improved positive company image, referrals, etc.

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Financial Services

Firms need to harness technology and keep innovating to retain the loyalty of customers and prevent reputational damage to their brand.

The availability of mobile applications and online experiences is increasingly important to customers. They want to access their accounts through mobile and connected devices and to pay for goods with a tap on their wearables.

Furthermore, over half of consumers would switch to a competitor if their digital experience does not live up to expectations.

Given the direction of travel in the industry, financial institutions (FIs) need to have a clear roadmap for technology and innovation. It is not enough to simply devise a digital strategy; instead, financial services firms need to have a business strategy focused on thriving in a fully digital world.