Economics · Banking and Innovation

Process Innovation in the banking sector aims to achieve competitive advantage. Consider the following statements distinguishing Process Innovation from Product Innovation: Statement 1: Process Innovation involves the implementation of a new or significantly improved delivery method, such as introducing paperless loan documentation, while Product Innovation involves creating a new service offering, such as a zero-balance savings account. Statement 2: The goal of Process Innovation is primarily to reduce costs and cycle time, making the bank more efficient, while the goal of Product Innovation is to increase revenue and market share. Statement 3: Business Process Re-engineering (BPR) represents a radical form of Product Innovation, fundamentally changing the service offered to the customer. Statement 4: Both Process Innovation and Product Innovation are essential for a bank's long-term survival, but Process Innovation often targets internal efficiency, and Product Innovation targets external competitiveness. Which of the above statements are correct?