![Open Access](https://i-scholar.in/lib/pkp/templates/images/icons/fulltextgreen.png)
![Restricted Access](https://i-scholar.in/lib/pkp/templates/images/icons/fulltextred.png)
![Open Access](https://i-scholar.in/lib/pkp/templates/images/icons/fulltextgreen.png)
![Open Access](https://i-scholar.in/lib/pkp/templates/images/icons/fulltext_open_medium.gif)
![Restricted Access](https://i-scholar.in/lib/pkp/templates/images/icons/fulltextred.png)
![Restricted Access](https://i-scholar.in/lib/pkp/templates/images/icons/fulltext_restricted_medium.gif)
Innovations-Led Paradigm Shift in the Indian Banking Sector
Subscribe/Renew Journal
Modern economists emphasize the importance of innovations and technological changes in the growth of an economy. The innovations and technological changes bring about transitional change in the growth of an economy. In case of India, the growth of tertiary sector in the gross domestic product has already achieved the 50% mark. Services sector, in general, and banking, in particular, plays a significant role in the growth of any economy. Banking sector is the most crucial pillar which supports the entire financial system. In the current phase of severe competition, performance is a buzzword and in addition to other factors, performance is a function of innovations. Therefore, an analysis of service sector innovation and performance in tertiary sector, in general, and of banking sector, in particular, is the need of time. In this context, this study is an attempt to relate the service sector innovation and performance in the Indian banking sector.
Innovation inputs are information and communication technology, R&D and human capital, throughputs are organizational change and outputs are productivity, profitability, efficiency and growth. Some of the innovations in banking sector are: introduction of ATMs, credit card, and debit card, smart card, increased categories of loans, Demat account, young stars account, senior citizens account, money transfers, core banking, various kinds of insurance, mobile banking, internet banking, mutual funds, filing IT returns and online taxation, updating current market trends, investing in diversified portfolio, employees retaining schemes, and so on. In this setting of argument, the work is an attempt to analyze the innovation and performance in the Indian banking sector.
Keywords
- Van de Ven, A. H. (1986). Central problems in the management of innovation. Management Science, 32(5), 590–607. Retrieved from https://doi.org/10.1287/ mnsc.32.5.590.
- Claessens, S., Demirguc–Kunt, A., & Huizinga, H. (2001). How does foreign entry affect domestic banking markets? Journal of Banking and Finance, 25(5), 891–911.
- Denizer, C. (2000). Foreign Bank Entry in Turkey’s Banking Sector, 1980–1997. The Internationalisation of Financial Services: Issues and Lessons for Developing Countries. Kluwer Academic Press, Dordrecht.
- Ghosh, S. K., & Mondal, A. (2011). Intellectual capital and financial performance: Evidence from the Indian banking industry. International Journal of Business and Management, 6(5).
- Lapavitsas, C., & Santos, P. D. (2008). Globalization and contemporary banking: On the impact of new technology. Contributions to Political Economy, 27, 31–56. Oxford University Press.
- Leontief, W. W. (1963). Studies in the Structure of American Economy. Oxford University Press, New York.
- Lopes, L. F., & Dodinho, M. M. (2005). Service innovation and economic performance: An analysis at firm level”, DRUID working paper no 05–08 presented at winter conference, Portugal.
- Luecke, R., & Katz, R. (2003). Managing creativity and innovation. Boston, Harvard Business School Press.
- Mckeown, M. (2008). The truth about innovation. Pearson/Financial Times, ISBN 0273719122.
- Mathur, P. N. (1963). An Efficient Path of Technological Transformation of an Economy” in Barna, T.(ed.), Structural Dependence and Economic Development, Macmillan.
- Metuer, M. L., Ostrom, A. L., Roundtree, R., & Bitner, M. J. (2000). Self-service technologies: Understanding customer satisfaction with technology-based service encounters. Journal of Marketing, 64(3), 50–64.
- National Knowledge Commission (2009). Report to the Nation 2006–2009. Retrieved from www.knowledgecommission.gov.in
- Nelson, R. R., & Winter, S. G. (1997). An evolutionary theory of economic change. Belknap Press and Harvard University Press.
- Schumpeter, J. A. (1934). The theory of economic development: An inquiry into profits, capital, credit, interest, and business cycle, Harvard Business Press, Cambridge.
- Singh, I., & Joshi, M. (2013). Structural Change and Tertiarization in India. May 18, Available at SSRN: http://ssrn.com/abstract=2266784
- Regis, C. (2003). Development, Science and Innovations. Oxford University Press, New York, pp. 205–207.
- Rogers, Everett M. (1995). Diffusion of Innovation. Free Press, New York.
- Senge, P. M. (1990). The fifth discipline: The art and practice of the learning organization. Free Press, New York.
- Yingli, H., & Yue, Q. (2007). Banking and Innovation: Learning from a Success Story of UK Bank Business School. Renmin University of China.
- http://it.swufe.edu.cn/UploadFile/other/xsjl/sixwuhan/Paper/IM351.pdf
![](https://i-scholar.in/public/site/images/abstractview.png)
Abstract Views: 196
![](https://i-scholar.in/public/site/images/pdfview.png)
PDF Views: 0