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Innovation in financial services: A McKinsey Global Survey

• Financial-services executives see innovation as important to the performance of their companies, according to a recent McKinsey Quarterly survey. They view product innovation as most important and expect a growing role for business model innovation.
• A majority of executives say innovation is more challenging for financial-services firms than for other companies, mostly because of short-term financial pressure.
• Executives rate their companies as no better than adequate at fostering innovation through practices such as using consumer insights to drive new ideas and dedicating people, processes, and funds to innovation.
• Most executives expect their company’s spending on innovation to increase in 2007.