Where is the innovation in banking? Is it in technology or in product offerings?

As I look back on innovation over the last few years, I have not seen a truly innovative in product offering from banks. Is it that banks have lost the innovation streak? Perhaps banking has hit a plateau in product innovation?

I certainly agree technology innovation has changed the way banking is conducted from customers and banks own perspectives. Here, I do not give credit to banks; pardon me for saying so. It is the technology wave that is engulfing everything around us. Banks, too, were drawn in. They had to innovate in technology, or cede market share to more tech-savvy competitors.

The innovation list reads: internet banking, direct banking, mobile banking, online bill payments. All these are a consequence of technology. This technology transition will always have the “in folks” — adapters and their critics. The “in folks” are those who started banking in the tech era; Gen Y as they are fondly called.The adapters are Gen X-ers who learn and like the nuances of tech banking .The critics are those who have no option, but to learn tech banking with discomfort. Given the option, they will slide back to the classic model.

On the products, innovation has not been as distinct as in technology. Deposit products are the same old checking,savings and CDs. The rest are a mix and match. Lending products are no different. I now understand why customers are not clicking their heels when it comes to customer satisfaction.

I throw open the floor to the forum of members to prove me wrong.  I want to be proved wrong.