While most changes to bank products or services are driven by profitability, the vast majority of bankers (98%) said their institutions are willing to introduce a new product or service that does not present an immediate profit opportunity, according to a new survey by the Beneficial State Foundation, majority owner of Beneficial State Bank.
According to the survey, 63% of respondents said the decision to introduce a new product or service would be driven by demonstrated community need or market demand, 58% by brand differentiation, and 43% by a desire to make a positive impact (respondents could choose more than one). Only 2% said immediate profitability is necessary to bring products to market.
New products and services are most often introduced by product development or innovation teams (63%) or division heads (56%), according to the survey. Meanwhile, chief ESG/impact officers (5%) and chief DEI officers (2%) are among the least influential in introducing new offerings.
“Banks that prioritize financial inclusion and community well-being may find themselves with a competitive advantage in a changing economy,” said Erin Kilmer Neel, executive director of Beneficial State Foundation. “Fortunately, this survey shows that there are many internal champions at financial institutions who are ready and willing to carry that commitment forward; all they need is the right tools.”
