THE NEXUS BETWEEN INNOVATIONS AND BANKING PERFORMANCE – DURING COVID-19 PANDEMIC
Abstract
Purpose - The purpose of this study is to explore the impact of innovations on the banking industry performance during the pandemic.
Design/methodology/approach - The positivistic philosophy was adapted by using the quantitative approach in the study. The population targeted 72 managers in ICT, administrative and marketing departments from 24 licensed commercial banks.
Findings - Findings of the study reveals that product innovation, process innovation and marketing innovation have positive and significant impacts on banking performance during COVID-19.Even though, process innovation has a significant impact on banking performance that impact was found to be weaker than the impact of other two types of innovations.
Research limitations/implications - This study only considers the licensed commercial banks as at 30th Oct 2020 in Sri Lanka.Further, this study has focused only on three departments of licensed commercial banks due to the restrictions of physical engagement within the COVID-19 pandemic.
Practical implications- Authors recommend that the Sri Lankan banks formulate innovative strategies, invest and better position on fintech services while enhancing its security and reliability.
Originality/value -There have been few studies performed locally and globally on the effect of innovation on banking performance during COVID-19; this study will serve as pioneer research on this issue and will give insight for future research. In addition, banks, the government, and policy makers will get a better knowledge of the issue.
