The Impact of Technology on New Product Development Performance

No doubt, technology is revolutionary. The emergence of technology has birthed a significant and revolutionary change across all economic sectors—regionally, and internationally. This change is evident in industries such as advertisement, sales and promotion, transportation, etcetera, and of course, the banking sector is no exception. This piece tends to unveil the impact of technology on new product development performance with a keen focus on the banking sector. 

Technology & Product Development

The linkage between technology and product development is positive and direct in that the progression of one (technology) leads to the birth of another (new product development). 

Brittanica describes technology as applying scientific knowledge to practical objectives of human life and purposes. Product development on the other hand refers to the creation of new or improvement of existing products to service the existing client base of an organization. 

In the banking sector, technology constitutes a large portion of an organization’s environment and it is a core determinant of new product development. For instance, before the progressive trend in tech, most commercial banks stuck to traditional banking, however, in recent times, all banks now gravitate towards digital banking, and are releasing retail banking products compatible with multiple devices and the internet due to technological advancement.

How Technology is Enhancing New Product Development Performance in Banking

The introduction of technology into the banking sector marks the birth of several transformative changes, most of which have helped commercial banks service their customers better, and improve operations efficiency.

Customer Experience 

The introduction of CRM and self-service products tailored to help customers experience unique and better banking services is one of the major impacts of technology. The overarching benefit of this innovation includes swift reporting of complaints and resolution.

Delivery Channels 

According to World Bank eLibrary, channels such as ATM, USSD, POS, Internet Banking, Mobile Banking, et cetera, are tech-improved banking channels leveraged by commercial banks to enhance and expand retail banking operations.

Automation

Creating an autopilot banking system is one of the major impacts of technology in the banking system. Auto systems, including fraud detection, KYC processing, account opening, bank reconciliation, loan processing, cloud banking, et cetera, are a true testament of automation in the banking sector.

Data Synchronization 

The impact of technology also improves the core banking system by synchronizing and centralizing all banking data and making it available and accessible across all branches, hence, embracing interconnectedness. 

Swift Retrieval

Technology in banking has made the retrieval of documents easier. Customers with lost records and documents can retrieve the data with ease and less hassle.

Core Areas Downplaying the Advancement of Technology in the Banking Sector

• Low education
• Resistance to change
• Security and data-compromising issues
• Limited access to Technology
• Government regulations 

Conclusion

Ultimately, as expressed in the foregoing paragraphs, the impact of technology on new product development performance is quite substantive, especially in the banking sector. As such, espousing and optimizing technology capacity has the potential to expand any industry regardless of the nature of its operations.