From Laggards to Innovators: A Review of the Financial Services Industry

Abstract

This review paper delves into the topics of innovation adoption, marketing strategies, and consumer behavior within the context of the financial services industry. The focus is on converting laggards into innovators, recognizing the pivotal role of embracing innovation and cultivating a culture of change for sustainable growth. Drawing insights from Rogers' diffusion of innovations theory, the dynamics of early adopters, and the characteristics of laggards are explored. A comprehensive search is conducted across academic databases, research repositories, and reputable journals. Keywords such as “laggards”, “innovators”, “financial services”, “innovation adoption,” and related terms are used to identify relevant studies. The inclusion criteria encompassed papers published within the past two decades, focusing on innovation adoption in the financial sector. The papers are thoroughly reviewed, and key information are extracted. This includes insights on the characteristics of laggards and innovators, innovation adoption theories, marketing strategies, consumer behavior, and case studies within the financial services industry. Data synthesis is carried out to identify common themes and trends across the literature. Environmental factors, changing consumer needs, and marketing tools like personal selling, promotion, direct marketing, and public relations are also analyzed. The significance of positive word of mouth from friends and family as a powerful influencer in consumer decision-making is highlighted. Overall, this paper underscores the importance of customer-centricity, innovation, and relationship marketing principles in fostering long-term success for businesses in an ever-evolving market landscape. By actively engaging consumers, businesses can drive product-market fit, build trust, and achieve enduring prosperity, especially within the financial services space.