A demand-driven innovation insight in the banking industry

Fransesc Relano and Elisabeth Paulet

Journal of Innovation Economics, 2016, vol. n°20, issue 2, 179-195

Abstract: There are two major types of financial innovations: one which is profit-seeking and supply-driven; another which is mostly demand-driven, outward-looking and socially oriented. We illustrate this twofold perspective analyzing the behavior of the banking industry during the period of the subprime mortgage crisis. More precisely, we examine how the financial statements of different types of banks are linked to innovation theories. From this analysis it emerges that, unlike mainstream banking, only the so-called ethical banks can be said to be putting into effect a demand-driven type of financial innovation in their banking practice. It is also argued that this involves a distinct business model. The last part of the paper explores briefly to what extent this demand-driven innovation approach to banking makes sense in the context of the post-financial crisis. JEL Codes: G21, L19, L2, G32

Keywords: ethical banks; stakeholder-based banks; shareholder-based banks; innovative banking practices; business model (search for similar items in EconPapers)
JEL-codes: G21 G32 L19 L2 (search for similar items in EconPapers)
Date: 2016
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.cairn.info/load_pdf.php?ID_ARTICLE=JIE_020_0179 (application/pdf)
http://www.cairn.info/revue-journal-of-innovation-economics-2016-2-page-179.htm (text/html)
free

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cai:jiedbu:jie_020_0179

Access Statistics for this article

More articles in Journal of Innovation Economics from De Boeck Université
Bibliographic data for series maintained by Jean-Baptiste de Vathaire ().