Innovation is the lifeblood of any forward-thinking organisation, especially in an era where disruption is constant and competition fierce.

In fact, according to a recent study, 84% of CEOs believe that innovation is critical to growth, while only 6% are satisfied with their innovation performance.

The truth is, innovation doesn’t just happen. You need to create the right environment for it to thrive.

Whether you’re a financial services giant or a growing fintech, the secret to staying ahead lies in building a culture that attracts top talent, fuels creative thinking and keeps your processes as agile as your ambitions.

In this blog post, we’ll explore how you can cultivate innovation in your company – from designing new creative spaces to rethinking old habits that can turn your boldest ideas into reality.

1. Build spaces where innovation can thrive

Innovation needs room to breathe. It’s like planting a seed – without the right environment, it simply won’t grow and bear fruit.

That’s why some of the most forward-thinking companies create dedicated spaces such as innovation labs, startup studios or incubators. These environments are designed to house experimentation and give teams the freedom to play with new concepts, take risks and even fail – because failure can often lead to solid breakthroughs.

However, it’s not just about physical spaces. It’s also about nurturing your team’s skills. In a world where technology evolves at breakneck speed, keeping your workforce up to date is non-negotiable. Offering internal upskilling programs – whether through workshops, mentorship or even partnerships with modern learning platforms – keeps your team at the top of their game. Upskilling not only helps employees stay sharp but it also builds a culture where curiosity and learning are embedded into the DNA of your company.

Creating this environment ramps up innovation, but also sends a clear message to your employees and future hires: “We’re invested in your growth, and we’re serious about staying ahead of the curve.”

2. Tap into your innovation network

Innovation doesn’t happen in isolation. Some of the best ideas come from outside your four walls. Tapping into broader innovation ecosystems – whether through industry collaborations, partnerships or simply staying engaged with digital communities – brings fresh perspectives that spark new ideas.

Being part of a larger community does more than inspire new thinking – it also opens doors to top talent. Let’s face it, the competition for digital experts is fierce and by being active in the innovation space, attending industry events or hosting meetups, you position yourself as a brand that’s not just keeping up with the times but shaping the future.

This kind of presence builds your employer brand and makes you a go-to destination for top-tier talent.

3. Rethink the rules: Agility, design and data

In financial services, structured processes are crucial for maintaining stability, trust and compliance. These frameworks have been key to the success of many FS companies. However, in today’s fast-evolving market, even established organisations need to find ways to introduce agility while preserving the robustness of their existing systems.

Agility doesn’t mean abandoning what’s worked. Instead, it’s about adding flexibility to adapt quickly, explore new ideas and take calculated risks – all within regulatory boundaries.

FS companies can nurture innovation by introducing design-led thinking, which focuses on user-centric solutions and continuous improvement. This approach can be integrated into current processes to encourage fresh ideas without compromising compliance.

Data is another valuable tool. By embracing data-driven decision-making, FS companies can enhance existing practices and act more swiftly. Analytics can help improve products, personalise customer experiences and predict trends, offering a competitive edge while respecting traditional structures.

Research from McKinsey shows that data-driven companies are 23 times more likely to acquire customers and nearly 19 times more likely to achieve above-average profitability. 

By integrating data and design thinking, FS organisations can innovate within their established frameworks, positioning themselves to not just respond to change but lead it.

4. Play to your strengths

Sure, startups might be agile and quick to innovate, but large-scale organisations – especially legacy FS companies – have their own superpowers. Big companies bring the scale and resources that are often a dream for smaller players.

The challenges faced by larger institutions are often more complex and more impactful, which can be a huge draw for talent who want to tackle meaningful problems that affect millions of people.

Legacy organisations can position themselves as the best of both worlds: a stable, established player with the resources to support big, bold ideas. They can offer something that many startups can’t – longevity and the chance to make a real difference at scale. The trick is to communicate this clearly to your workforce and prospective talent, showing that while you have the infrastructure of a traditional company, you’re moving with the speed and creativity of a startup.

When you lean into your strengths – whether it’s the scale of the challenges, the complexity of the problems or the stability of a long-standing institution – you can carve out a unique space for yourself in the innovation landscape.

Innovation is a journey, not a destination

At its core, creating an environment for innovation is about being intentional. It’s about providing the right spaces, supporting your team’s growth and staying plugged into a broader community that feeds your creativity. By adjusting your thinking and playing to your strengths, you not only stay competitive – you shape the future.

While innovation may be a continuous journey, the companies that commit to building the right environment are the ones that will thrive in a world that never stops changing.

Ready to create your innovation ecosystem? First stop: Complete this free Innovation health check survey. The future is waiting.

If you want to discover more about actionable strategies for innovation in the financial services industry, without compromising security or compliance, download our free digital guide.