Innovations in Corporate Governance Practices for Banking Sector Growth

Abstract

Innovation is reshaping the corporate culture of organizations in this present age of competency and service legacy. Innovation in services is getting recognition from the top executives due to its strategic importance and globalized competition, which has escalated the demand for better change and adoption of best practices through change in processes. This research paper is based on innovation management in service industry for banking sector according to the prevailing corporate governance environment and strategies to sustain or have potential competitiveness to meet the standards of the ever changing market. Organizations are considering innovative ideas as their potential informational resource along with financial and non financial resources. Almost 80% of the IT sector and 60%of the banking sector has embedded the innovation concepts in their organizational hierarchy to get optimum utilization of resources and benefits through market and organizational performance. Innovation is the core competency factor for every market oriented approach. The real success of our financial sector reforms will however depend primarily on the organizational effectiveness of the banks, including cooperative banks, for which initiatives will have to come from the banks themselves. With elements of good corporate governance, sound investment policy, appropriate internal control systems, better credit risk management, focus on newly-emerging business areas like micro finance, commitment to better customer service, adequate automation and proactive policies on house-keeping issues, definitely would be able to grapple these challenges and convert them into opportunities.