The banking industry occupies a very strategic position in the financial system of any economy, since there will no economic growth unless there is adequate channelling of savings into investment. The banks are responsible for increasing the level of savings and investments, granting of credit and generally influencing the level of supply of money in the economy. They also facilitate economic transactions between nations thereby encouraging and promoting trade, commerce and industry. Banks and banking is a very old profession but the modern-day banking practice as we know it today, started in the medieval days in Italian cities of Florence, Venice and Genoa. In Nigeria, banking officially had a formal legislative backing in 1952(alford, 2010) and since then, there has been tremendous growth in the industry, which is believed to have been fuelled largely by changes in technology and the banks' ability to embrace these changes successfully by implementing novel ideas in their bid to control a large share of the market. The development of self service technology and the emergence of a number of new innovations are taking place in the area of retail payments known as electronic money. (Mohamad Al-Laham, 2009). This development is influencing the banking industry due to the increased use of Automated Teller Machines leading to a new concept in the ATM, known as Intelligent Automated Teller Machine (ATM).
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The objective of this paper is to show that the development of the intelligent Automated Teller Machine (ATM) in the banking industry with particular reference to the developing countries is an innovation. We also aim to find out the approach and implementation procedures adopted by the organisation in managing the innovation, examine its' benefits to the bank and finally, identifying the role played by the manager in the innovation. For the purpose of this paper, we use the introduction Intelligent ATM by Skye Bank PLC., based in Nigeria as a case study.
Skye Bank PLC is a publicly quoted company in Nigeria with over 300,000 shareholders and is technically one of the oldest banks in Nigeria and West Africa. It provides financial products and services with a solid technological background that supports the service delivery process to customers. After the bank consolidation process in 2006, Skye bank developed into one of the top flight banks in Nigeria. Presently, it manages more than 250 branches in the country with over 600 operational ATM machines within their business premises and other well placed location across the country. In 2009, the Bank in its bid to increase its growth and expansion rate and its determination to provide first rate and revolutionary services to its enormous majority of customers, Skye Bank Plc., introduced an improvement in its electronic payment method, with the introduction of a new cash deposit, cheque deposit and foreign exchange Automated Teller Machines (ATMs), appropriately tagged "intelligent ATM, a feat unprecedented in the history of Nigerian banking industry.
According to (Babajide, 2009), the history of ATMs traced back to the USA in the mid 1960s and progressed all over the world, in the 70s. However, in Nigeria, the ATM was first used in 1989 by the then named Societe Generale Bank and since then, the ATMs appear to have spread everywhere across Nigeria (eShekels Limited, 2006), further posited that the banking industry no doubt has witnessed advancement in technology just like any other sector; the use of the automated teller machine is one of these as it has positively affected banking operations entirely. With the adoption of Self Service technology by the banks, ATMs have continued to service the populace; they make things easier for the customers and provide banking services that were previously not seen within that period. It therefore encourages a society that deals less with cash, thereby reducing the risk of loss of cash by way of robbery or fire accidents fire which was prevalent in the past in the. At the beginning, some of the banks that had these banks in Nigeria constrained their customers to having access to the machines only from their banks. Now, things are different as technology has made it possible for users to make withdrawals from ATMs of other banks.
Skye Bank, like any other firm or business operating in a dynamic and volatile environment always looks for ways to make their growth a continuous process. They believe they can do this by finding new and creative ways of sustaining or improving their market share. The process of turning these creative ideas into facts is known as innovation.
DEFINITIONS OF INNOVATION
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(Schumpeter, 1934), defined innovation in different ways. Some of these definitions are:
1) The introduction of a new good -that is one with which consumers are not yet familiar-or of a new quality of a good.
2) The introduction of a new method of production, which need by no means be founded upon a discovery scientifically new, and can also exist in a new way of handling a commodity commercially.
3) The opening of a new mark - that is a market into which the particular branch of manufacture of the country in question has not previously entered, whether or not this market has existed before.
4) The conquest of a new source of supply of raw materials or half-manufactured goods, again irrespective of whether this source already exists or whether it has first to be created.
Regis Cabral (1998, 2003), further defined Innovation as a new element introduced in the system which temporarily changes the transactions costs between at two or more players, elements or nodes, in the system. According to the (Wikipedia The Free Encyclopedia), Innovation is a change in the method of doing something, or the useful application of new inventions or discoveries. It may also refer to major or fundamental changes in thinking, products, processes, or organizations. (Sarkar, 2007), in citing Michael Vance simplified innovation as a creation of the new or re-arranging of the old in a new way. He went further by distinguishing innovation from invention by quoting Schumpeter (1934), (Ezinearticles, 2010), named ingredients that are essential in defining innovation. It said that innovation has to be something new, better than what existed, has to be economically viable and finally, must have general acceptance.
Fortunately, however, a consistent agreement between the various definitions can be identified: innovation is characteristically understood as the introduction of something new and valuable, like introducing a different method or technique or altering the old method
"Contributors to the scholarly literature on innovation typically distinguish between invention, an idea made manifest, and innovation, ideas applied successfully in practice".
In all ramification of life, be it arts, science, economics or government policy, something new must be significantly different to be seen as an innovation. (Sarkar, 2007), further stated the difference or change must however be able to increase value, be it customer value, or producer value. The objective of innovation is positive change, to make someone or something better and ultimately leading to increased productivity which is the fundamental source of increasing wealth in an economy he concluded.
TYPES OF INNOVATION
Stanford center for Professional development, identified four types of innovation
Disruptive innovation is one that introduces new markets types based on an alternating technological change or a disruptive business model. This model he said is not compatible with existing standards. Application Innovation, which can also be called solution innovation, is one that develops new markets for products that are already in existence by finding uses for them and combining them in an entirely different way. Product Innovation enables a shift in role. Either moving up or down along the different levels. Platform Innovation, simplifies complex and complicated technologies.
(James), was able to highlight different classifications of innovation. Some of these definitions are:
; Business model innovation: involves how to do business in terms of understanding the significance of the enterprise.
; Marketing innovation: involves the improvement and introduction of new marketing techniques with enhancement in packaging or product design, pricing or product promotion.
; Organizational innovation: involves the creation or adaptation of business structures and norms.
; Process innovation: involves the carrying out of an innovative or significantly improved production or system of delivery.
; Product innovation: involves the introduction of a new or improved good or service
; Service innovation: refers to service product innovation which might be, compared to goods product innovation or process innovation, relatively less involving technological advance but more interactive and information-intensive (Miles, 2004 in Fagerberg et al.), mainly due to the characteristics of services per se.
; Supply chain innovation: where innovations occur in the sourcing of input products from suppliers and the delivery of output products to customers
; Substantial innovation: Introducing a different product or service within the same line, such as the movement of a candle company into marketing the electric light bulb.
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; Financial innovation: aids the development of new financial services and products.
The advantages of the intelligent ATMs cannot be overemphasised. On May 5, 2009 Skye Bank publicised the introduction of the intelligent cash deposit ATMs, relating the achievement as the first bank to introduce this novel idea in the country. In highlighting the advantages of the ATM, the bank in a statement signed by the Head of Corporate Affairs, Kayode Akinyemi, said that the ATMs allow customers can deposit cash and cheque into their accounts whenever they want and get immediate response from the machine. Furthermore, a customer that wants can pay in up to two hundred notes at a time, without having to arrange them according to different denominations. Furthermore (Babajide, 2009) said, that the ATMs allow customers to pay in cheques, conclude their transactions in foreign currencies as well as withdraw cash, saying that with the innovation, it had moved ahead of the present ATM system where customers have to make cash deposit that might result in fraud in some countries.
The intelligent ATM reduces long queues in the banking hall as jobs hitherto done by bank staffs are now done automatically by the machine. (Babajide, 2009), also added that Skye bank representative explained that the Intelligent cash-deposit ATMs, makes the withdrawal of money from the ATMs to process irrelevant since everything is now automatically done. The ATMs scans both sides of the bank notes to confirm its genuineness. The bank further said that notes not recognised by the ATMs would be returned to the customers, thereby making it impossible for fake notes to be deposited.
Every innovation has its setbacks and limitations, and they vary as the companies that introduce them vary. The Skye Bank intelligent cash-deposit ATMs is not an exception. Presently, one of its major limitations is that it accepts only one currency, the naira. However, The ATMs accept all the most commonly used currency denominations in the country i.e. 100, 200, 500 and 1000 currency notes.
Presently, the intelligent ATMs only accepts Skye Bank's cheques thereby limiting its' usage with emphasis on cheque payment to Skye bank customers only.
REASONS FOR INNOVATING
The innovative achievement was initiated by the banks' aspiration to bring expediency, safety and security to payment of cash and cheque to complement cash withdrawal through the ATMs. Group managing director/chief executive officer of the bank, Akinsola Akinfemiwa, said the innovation is part of the banks strategy in becoming one of the top five banks in the country within the next three years.
HOW IT WORKS
According to (Babajide, 2009), Skye Bank officially launched their intelligent cash Deposit ATMs on May 26, for the use of the general banking community. There were various speakers present at the inauguration including Mr Chuma Ezirim, Deputy General Manager, and e-channel group of the bank, The Group Managing Director and Chief Executive Officer, Mr Akinsola Akinfemiwa, amongst others. The guest speakers spoke on how the machines operate and some of its benefit to both the customers and the bank. On how the machines work, in quoting Mr Chuma Ezirim, (Babajide, 2009) said "Depositing cash on the ATMs is very simple. A customer simply slots in his or her card, after which he or she is presented with options on the screen. To deposit cash all a customer has to do is select the 'cash deposit' option on the screen, after which the ATM will open the cash acceptance slot". Chuma Ezirim also explained that at that point in time, some of the machines had already been positioned at Akin Adesola (the bank's Head Office) and at other strategic locations in Lekki Peninsula, were they will be tested for about three months before they are mass produced and deployed. Furthermore Chuma Ezirim said that the innovation had helped the bank break the elites in the industry, which had previously gone into the venture such as the Bank of America, J.P. Morgan and others.
Mr Akinsola Akinfemiwa, The Group Managing Director and Chief Executive Officer, gave more insight on the running of the machines particularly as regards the payment of cheques, he said that as soon as the cheque is inserted into the machine, the front and rear is scanned and with positive confirmation, the customer is immediately given a receipt confirming that the bank had accepted the cheque. On the foreign exchange aspect, Ezirim explained that for now, only five currencies including US Dollar, British Pounds and Euro will be accepted by the intelligent ATM. (Babajide, 2009)
ROLE OF MANAGER IN INNOVATION
(Hiatt, 2010), defined change management as:
"The process, tools and techniques to manage the people-side of business change to achieve the required business outcome and to realize that business change effectively within the social infrastructure of the workplace."
The role of the managers of Skye in this innovation is double sided. They are obliged to both the staff and to their superiors. To the staff, the role of the manager is supposed to be a carer of innovation, i.e. he nurtures and supports the innovation to its maturity stage, and this they did by adequately training the few staff that would be directly involved in the new process, combated the feeling of insecurity and resistance to change from the staff through better communication of the reasons and benefit of implementing the innovation for both the staff and the consequences of not taking action. Towards their superiors, the role of the manager is that of a defender of innovation. Hence, the managers created the ideal internal environment necessary for innovation to succeed and then protect it from external forces which would try to prevent its growth. It is easier to protecting innovation is easier if the path of the nurturing of innovation is in alignment with corporate goal.
SUMMARY AND CONCLUSION
Though innovation naturally adds value, negative or destructive tendencies may also emanate from innovation. Effect such as new developments erode or change old organisational norms and practices. Organisations that are not able to adjust effectively may be overtaken by those that do. A major task in innovation is maintaining equilibrium between process and product innovations which involves developing efficiency and customer support.
At this juncture, it has to be noted that the usage of ATM in Nigeria is now being used for things and is seriously advancing away from the regular norms of withdrawals, account statements and purchase of cards, despite the yearning for its multifunctional services like (payment of bills and tax related matters, stock/shares transaction, purchasing tickets amongst others); these recent services are yet to be added among the services to be provided.
However, the Bank has to make a lot of adjustments if they must survive in this highly competitive industry. Amongst all, access to these machines should not be restricted to their banks alone, in that customers from other bank can also have access to this facility from wherever they are.
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