Innovation Strategies in Banking: A Case Study of BNZ

Innovation is crucial for businesses like Bank of New Zealand (BNZ) to maintain competitiveness in a dynamic market. This report examines the necessity of innovation driven by globalization, technological changes, and evolving stakeholder expectations. It highlights specific innovations such as voice payment technology and virtual reality training as short-term strategies. Additionally, it discusses long-term innovations like artificial intelligence for customer service enhancement and doorstep banking services. These strategic innovations aim to improve stakeholder engagement and operational efficiency, ensuring BNZ's sustained success in the competitive New Zealand banking sector.

Running head: PART THREE: INNOVATION AND COMMUNICATION
Part Three: Innovation and Communication
Name of the Student
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Author’s Note

1PART THREE: INNOVATION AND COMMUNICATION
Contents
Introduction......................................................................................................................................2
Requirement of Innovation..............................................................................................................2
Globalization................................................................................................................................2
Technology...................................................................................................................................3
Stakeholders’ expectation............................................................................................................3
Early bird gets the Pray................................................................................................................3
Short Term Innovation.....................................................................................................................3
Technological innovation – Voice payment................................................................................3
VR in Training.............................................................................................................................3
Long term Innovation......................................................................................................................4
Artificial Intelligence...................................................................................................................4
Door Step Banking.......................................................................................................................4
Conclusion.......................................................................................................................................4
Reference.........................................................................................................................................5

2PART THREE: INNOVATION AND COMMUNICATION
Part 3
Introduction
Innovation is the key to success for any business in this competitive market. The business
can explore new effective process, products and ideas that is new in the market. It will facilitate
the business to attract customers and also propose value to its major stakeholders. Innovation
does not always mean complete innovation of new plans or products. It can also refer to the
modified form of existing model to provide the stakeholders better products. BNZ or Bank of
New Zealand can utilize some innovative change for gaining stakeholders cooperation ad
support.
Requirement of Innovation
Bank of New Zealand is one of the largest banks currently operating within the
boundaries of New Zealand. They have successfully gained customer loyalty in the market with
their existing stakeholder relationship management strategy. However, they have some issues
related to the internal stakeholders, which they need to resolve (Francis et al., 2012). Moreover,
the innovation can help the business compete in the constantly changing world. There are some
of the key reasons for constantly innovating the business models and strategies for gaining or
holding the stakeholder cooperation and support. They can be as follows.
Globalization
Globalization is the major issue that businesses in any industry are facing. It has brought
any business to the door steps of the customers. Hence, regardless of domestic or international,
the businesses needs to consider it for holding their position.

3PART THREE: INNOVATION AND COMMUNICATION
Technology
Technological innovation on the other hand is the primary requirement of any business in
this modern world. The company has to keep up with the technologically changing world to
satisfy their customer’s need.
Stakeholders’ expectation
Different stakeholders of BNZ have different needs that the company needs to satisfy.
Moreover, these needs are constantly changing. The company has to meet these increasing
expectations of the customers to keep performing in the market.
Early bird gets the Pray
The innovation of a business is measured in accordance with the innovation of their
competitors. The first one to innovate something useful and can better satisfy the stakeholders’
need gets to receive stakeholders’ loyalty. Hence, it becomes need for innovation becomes
obvious to for BNZ.
Short Term Innovation
Technological innovation – Voice payment
One of the short term innovations BNZ can utilize is the voice payment in technological
part. It will enable the customer to easily pay their bills through voice recognition. The
customers will have to set a particular voice password that will complete the transaction. This is
a short term trend as it is about to change due to the invention of more advanced technology
(Gazdzinski, 2013).

4PART THREE: INNOVATION AND COMMUNICATION
VR in Training
The bank can utilize the virtual reality for training their employees. The employees has to
undergo a test of virtual reality test, which will be based on a real life streaming of critical
situation. It will help the organization to eliminate the incompetent employees directly in their
training period and avoid unpleasant situation in the work (Vince, 2012).
Long term Innovation
Artificial Intelligence
Bank of New Zealand can implement the artificial intelligence in their customer service.
It will reduce the work pressure of their employees. The customers will get to resolve their
quarries just by asking the AIs. This can be considered as a long term innovation as it is likely to
benefit the bank for a longer period of time. This will permanently reduce the employee
involvement in quarry solving that is a hectic job for them. On the banks point of view, this will
considerably reduce the expenses spent over the customer handling section (Erdal & Ekinci,
2013).
Door Step Banking
Door step banking can bring potential benefit in the ban king sector. Like any other retail
sector will deliver the banking service at the door steps of the customers. The customers can
order for any banking service at their home. The customer executives will be delivering the
services ranging from cash delivery to account opening will be provided tio the customers
anywhere in New Zealand (Lizie & Dhas, 2015).

5PART THREE: INNOVATION AND COMMUNICATION
Conclusion
It can be concluded form the above discussion that innovation is required for banking
sector to compete with the other rising banks. Some of the necessities for innovation are
mentioned in the report to support the view. Moreover, the report proposes two short term and
two long term innovation for the company that will place them in an advantageous position the
market of New Zealand if applied.

6PART THREE: INNOVATION AND COMMUNICATION
Reference
Erdal, H. I., & Ekinci, A. (2013). A comparison of various artificial intelligence methods in the
prediction of bank failures. Computational Economics, 42(2), 199-215.
Francis, B., Hasan, I., Huang, Y., & Sharma, Z. (2012). Do banks value innovation? Evidence
from US firms. Financial Management, 41(1), 159-185.
Gazdzinski, R. F. (2013). U.S. Patent No. 8,371,503. Washington, DC: U.S. Patent and
Trademark Office.
Lizie, R. A., & Dhas, Y. S. A. (2015, March). Handheld secured electronic doorstep banking
system. In Circuit, Power and Computing Technologies (ICCPCT), 2015 International
Conference on (pp. 1-5). IEEE.
Vince, J. (2012). Essential virtual reality fast: how to understand the techniques and potential of
virtual reality. Springer Science & Business Media.