The Impact of Banking Financial Services Innovations on the Development of the Financial Sector in Palestine
إسماعيل, احمد طالب
An-Najah National University
This research aims at investigating the impact of financial banking innovation factors on banking development in Palestine. A Regression analysis was used to estimate the impact of specific factors related to the development of the financial sector in Palestine. The research utilized both qualitative and quantitative research methodology. Qualitative data were collected via interviews with banks officials. In addition, the quantitative data were gathered from a purposive sample of seventy (N=70) from five departments in all banks in Palestine via a survey that was developed for this purpose. Results indicate that production innovation has a positive impact on the development banking sector but it has no impact on profitability in short term. The result also indicates that marketing innovation has no impact on the development banking sector and on financial performance for all banks in Palestine. Regarding the process of innovation variable has a positive impact on the development of the banking sector and on the financial performance for all banks in Palestine. The result indicates that administrative procedure innovation has a positive impact on the development and the performance of banking sector in Palestine. Finally, the result indicates that the variable risk management has no impact on development banking sector but it does have a negative impact on the financial performance for banks in Palestine. Based on the research findings, the study recommend that individual banks conduct a separate study to examine the needs of individual customers and to identify appropriate products for each period of time to all customers in order to achieve financial inclusion. It also recommended that banks in Palestine adopt a comprehensive marketing strategy to market their various products based on quality elements, which can promote bank name and enhance trust with customers in order to attract more customers. It is also recommended that banks works to reduce customers' visits to branches by increasing awareness of electronic banking services, smart cards, and transforming the system of operations from decentralization to centralization to reduce the complexity of the implementation of banking movements (transfers, checks, loans) and investment in the latest technologies to modernize their various sections to enhance financial and banking performance and increase competitiveness. It is also recommended that banks simplify operation procedures and updating them in line with the technological development and eliminating procedures that does not add any value to the banking business It is recommended that banks develop their risk departments in banks, especially the risks of operations and training staff to be able to deal with risk management systems and programs, which helps in governance and good governance. Finally, banks needs to work on the adoption of electronic banking strategies, including smart bank and electronic bank. It is only with the development and modernization of the legal environment banks will be able to use the technological development and electronic banking operations to protect them from piracy. This will allow banks to meet other challenges in dealing with the government, that might impact the implementation of banking operations all these will lead to higher performance and improve financial efficiency, which will increases the volume of economic activity.