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The innovation paradox in banking
Journal of Digital Banking,
9
(4),
353-372
(2025)
Abstract
Because the current era is defined by rapid technological evolution and shifting customer expectations, innovation is no longer a luxury; rather, it is a necessity for survival in financial services. This paper offers a forward-thinking roadmap for banking leaders to follow as they transform their organisations into innovation powerhouses, blending practical frameworks with visionary insights. It challenges conventional approaches, urging institutions to break free from silos, embrace ecosystem partnerships and adopt a multidimensional view of innovation that integrates technology, customer experience and operational excellence (OPEX). Readers will explore actionable strategies to address the paradox of balancing risk-aversion with the need for disruptive change. Important topics that are covered include leveraging cross-functional collaboration to dissolve organisational barriers, reimagining regulatory compliance as an impetus behind innovation and building resilience into essential systems while betting on frontier technologies. With an emphasis on both sustainable and transformative innovation, this paper equips leaders to redefine their strategies and prepare for future challenges. Drawing on two decades of industry expertise, the author provides a candid perspective on navigating the complexities of banking innovation. By fostering cultures of adaptability, collaboration and relentless improvement, this paper empowers readers to create a sustainable legacy of innovation that not only meets today’s demands but anticipates the needs of future generations. Whether the reader is a banking executive or a FinTech leader, this paper will inspire them to rethink what is possible and become a catalyst for change in the financial ecosystem.
Keywords: innovation; leadership; transformation; strategy; customer
The full article is available to subscribers to the journal.
Author's Biography
Wasim Mushtaq has spent nearly two decades as a leader in financial services. His efforts have promoted operational excellence (OPEX) and strategic transformation across global banks and innovative start-ups. He is the Founder & Chief Executive Officer (CEO) of 1CG, Strategic Partner to Birdie and Advisory Board Member to BankAbility and the Operational Excellence Society. Starting his career in business banking at Abbey National, Wasim went on to manage UK Libor lending teams at RBS. At Barclays Wealth Management, as Vice President (VP) and Head of Credit Operations, he later led the launch of Smart Investor. His consultancy roles in the Chief Information Officer (CIO) office focused on system decommissioning, platform implementations, banking entity closures, product launches and structural reform for Barclays Private Bank. In FinTech, as Director of Operations at AskIf, Wasim launched CBILS with the British Business Bank, developed small to mid-size enterprise (SME) green finance initiatives and managed third-party vendors. At Standard Chartered, he led global transformation in financial markets, promoting change across 45 regulatory markets and overseeing a group-wide material outsourcing programme. Most recently, as Interim Chief Operating Officer (COO) of CFIT (Centre for Finance, Innovation and Technology), he has been leading organisational capability in governance, finance, technology, operations and strategic outcomes, as well as partnering with ExCo to advance coalitions, ecosystems and partnerships. Wasim holds a master’s in economics from the University of Glasgow, and has completed executive certificates at Oxford’s Saïd Business School and MIT Sloan. His areas of expertise include business strategy, digital transformation, client journeys, process reengineering, lending, regulatory compliance, corporate innovation and outsourcing solutions.
