An Assessment of the Relationship Between Innovation & Financial Performance: A Case Study of Zanaco Bank.

The objective of this study was to understand the impact of innovation on financial performance in the banking sector using mixed methods research and a case study. The study area was Zanaco Bank PLC. Secondary data was analysed through the banks financial reports posted on their website. Categorical data was collected, analysed by simple frequencies using regression analysis. Qualitative textual data was analysed manually using hierarchical coding frames. Quantitative Likert scale data were used to understand the perception of innovation amongst employees. Results of the study are that financial process innovation and financial product innovations had a higher correlation to financial performance as opposed to financial institution innovation alongside financial market innovation. Based on these results, strategic recommendations on how best to produce optimised innovation strategies were then developed.