Discuss the role that financial and technological innovation has on bank strategy and performance.

Financial and technological innovation have had a profound impact on the banking industry, transforming it from a traditional sector reliant on physical infrastructure to one that is becoming increasingly automated and digitized. This has changed the way banks operate by giving them access to new revenue sources, improved operational efficiency, and enhanced customer experience.

For example, fintech innovations such as mobile banking apps or digital payment systems have allowed customers to complete transactions anytime, anywhere while still maintaining secure access to their accounts. Additionally such technologies can be used by organizations to monitor financial performance in real-time which helps them make better informed decisions while reducing costs associated with manual processes.

Overall financial and technological innovation are key components of modern bank strategy as they provide numerous advantages when utilized correctly. By investing in these tools institutions can become more competitive; strengthen customer relationships; and improve overall performance over time.