Canada’s financial sector isn’t innovative

Canada’s financial sector isn’t as innovative as its global peers, says a new PwC study, since nearly a third (28%) of board-level executives struggle to inspire their employees.

Though innovation is viewed as an important driver of success by most banks, insurers and wealth managers (83%), the study finds institutions and professionals aren’t sure how to foster creative cultures.

Read: Canada needs new approach to innovation gap

Nearly a quarter (22%) say talented employees are hard to retain, while 17% admit they aren’t sure how measure innovation success. Further, executives find developing and implementing support structures that sustain innovation initiatives is difficult (28%).

The problem, says the study, is they’re focusing most on near-term innovations in area such as technology (33%) and systems improvements (22%). Though technology does change rapidly, taking that approach means many financial institutions are missing out on boosting customer experiences, business models and product innovations.

Read: How to encourage better ideas

“There’s considerable competition in Canada to create the ultimate customer experience,” says Karen Forward, director of Financial Services at PwC. “Frontline employees are key idea generators as they see opportunities every day to drive a more personal level of customer service.”

To ensure the ideas of these employees are heard, financial services companies need to create a formal sharing process for their staff, says the study. That way, people will be encouraged to come up with business-boosting concepts.

The study adds 79% of top global performers have a well-defined innovation strategy in place.

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