Anne-Laure Mention

Improving auditor effectiveness in assessing KYC/AML practices: Case study in a Luxembourgish context

Purpose - The purpose of this paper is to report on the suitability of an ISO standard to create an internal control assessment model, which effectively acts as a control system template and mental model to evaluate compliance with the Know Your Customer (KYC) and anti-money laundering (AML) requirements in the Luxembourg retail and private banking sector. Design/methodology/approach - This paper used a qualitative approach with various focus groups and case studies, to elaborate and validate the developed model through methodological triangulation. Findings - The proposed assessment model has a matrix structure that facilitates the incorporation of checklists and narratives to ensure effective testing of controls and its structure allows targeting specific areas of risk in the identified KYC/AML processes. Research limitations/implications - The development of the model tended to be time consuming and could explain why matrix formats are used less often and the traditional limitations of a qualitative research apply. Practical implications - The model can be used to combine various reporting formats on internal control, hence the audit effectiveness can be increased and information asymmetries can be reduced. Originality/value - The proposed assessment model offers an innovative approach because it combines a process view of the business with an internal control view. Research in internal control assessment models has been very limited in the past years.

The Impact of Cooperation on Firms’ Innovation Propensity in Emerging Economies

The importance of collaboration has been one of the main issues in innovation studies. Despite many different findings on collaboration and its impact on innovation performance, the impact of different types of collaboration on different types of innovation is still inconclusive. The purpose of this research is to investigate the effects of openness on the performance of the innovation process in a leading emerging economy. Cooperation with partners and their effects on innovation propensity unveil that process, marketing and organisational innovations are determinants of product and service innovation, thus confirming that the various innovation types are intertwined and mutually supporting each other. From a geographical perspective, cooperating with external parties from the same country plays a dominant role in determining the innovation outcome. Cooperating with consultants and private labs on the other hand seems to negatively affect innovation performance. Surprisingly, the role of foreign cooperation remains ambiguous as results were not statistically significant.

Patterns of new service development processes in banking

Purpose – The purpose of this paper is to map the existing patterns in the development of services innovations in financial institutions. Design/methodology/approach – The data come from a dedicated survey of banks located in Luxembourg. Executives and innovation managers reported on banks’ innovation processes for the period of 2010-2012. Findings – The study unveils four patterns of new service development (NSD) processes. The problem-driven pattern starts with problem definition and represents a bank’s response to an issue. The proactivity-driven pattern commences with idea generation to explore a variety of alternatives. The market-driven pattern emphasises a profit rationale and starts with a business analysis. The strategy-driven pattern frames idea generation within the scope of business goals and starts with the development of a service concept. Most banks keep a balance between being open and closed to cooperation with external partners in the innovation process. Service concept development is th...

Open innovation and collaboration in the financial services sector: exploring the role of trust

This paper aims at exploring the role of trust within the financial services sector in relation to open and collaborative financial innovation. Financial services nowadays represent considerable share of the global economy. In the European Union (EU-27), financial services accounted for 5.9% of the gross value added in 2010 (Eurostat, 2011). There is a vast discussion about open innovation and the need for collaboration and knowledge sharing; however, in the process of building up this open and collaborative framework, trust does not yet seem to have a place in the academic debate. Relying on a review covering multiple literature streams and primary data collected from interviews, the relevant antecedents of trust in the financial services sector under this open and collaborative perspective, ex-post financial crisis are identified.

Open Innovation: Unveiling the Power of the Human Element

Pub Date: May 2017 Binding: Hardcover ISBN: 978-981-3140-84-4 Price: £112 Page Extent: 400pp Type: Review Volume Main Subject: Business & Management Sub-subjects: Innovation/ Technology/Knowledge/ Information Management; Organizational Behavior/ Industrial Organization; General Business and Management; Globalization BIC: KJD BISAC: BUS085000; BUS000000

Trust embeddedness within an open innovation mindset

This paper explores the role of trust under the prism of open innovation. There is a vast discussion about open innovation and the need for collaboration and knowledge sharing; however, in the process of building up an open and innovative organisation, trust does not yet seem to have a place in this process. The approaches of current literature fail to denote the relationship between the importance and impact of trust within an open and collaborative environment under an organisational perspective. The objective of this conceptual paper is to elevate trust as a core element of open innovation, perceived as an organisational mindset, by proposing a conceptual model leading to a re-contextualisation of the current approaches to open innovation.

FinTech: Harnessing Innovation for Financial Inclusion

Abstract The landscape of financial inclusion has for long been considered as the soft side of financial services, having received scarce attention from a financial, regulatory, and policy point of view, despite its central role within the global economic empowerment. Part of the disadvantaged and low-income segments of global population is left without (i.e. financially excluded) or very limited access (i.e. financially underserved) to basic financial services, creating a highly critical equality deficit in different parts of the world. In this frame of reference, financial exclusion still remains a highly critical problem that hinders developing regions around the world from eradicating poverty leading to large-scale starvation and civil unrest. Moreover, financial exclusion is interwoven with social dependency making financially excluded/underserved populations strongly dependable on their social networks. The emergence of FinTech, the new breed between financial innovation and financial technology, which has been challenging the prevailing position of incumbent financial institutions, is providing a promising vehicle of tackling this phenomenon by closing the gap between unbanked, under-banked and developed societies, opening the door to the global digital economy, bringing a long-term societal transformational change for the financially excluded/underserved, while leading to inclusive economic growth helping move towards a more just and equitable society.

Open Innovation:A Multifaceted Perspective(In 2 Parts)

Open Innovation: A Multifaceted Perspective unveils research on open innovation from multidisciplinary perspectives and with practical insights from leaders and policy-makers. The first section addresses the links between open innovation and various disciplines, methods, concepts and policy instruments. The second section reviews selectively the literature, focusing essentially on open service innovation and innovation in financial services industries. It also explores different forms and types of practices reflecting the adoption and implementation of open innovation. The third section focuses on the management of open innovation, paying specific attention to the individual, intra- and inter-organizational levels.

Measuring the impact of knowledge sourcing and cooperation on innovation success: some empirical evidence from Turkey

Innovation rarely occurs in isolation, and firms increasingly exploit cooperation strategies to increase their innovation propensity and performance. Empirical research concentrating on the breadth of cooperation practices, as well as the variety of objectives pursued in the context of innovation strategies remains scarce, and even more so for emerging economies. This paper aims to contribute to this literature stream by providing empirical evidence on the impact of the breadth of cooperation and innovation goals on innovation performance in Turkey. Results show that having six types of cooperation leads to the highest marginal effects on the innovation success while the probability to innovate is more determined by the objectives pursued rather than by cooperation itself.

Knowledge sourcing from customers in new financial service development

The involvement of customers for new service developments is an area that receives considerable research attention, yet its exact outcomes and process are found to be ambiguous. Therefore different contexts should be studied to capture the multifaceted nature of service innovations. This research focuses on the results of a survey in an international financial services setting. This survey was distributed among the members of the leading professional association for financial services. The obtained dataset was studied by using qualitative comparative analysis (QCA) and descriptive statistics in order to explore customer involvement and facilitate the emergence of research propositions and recommendations in this setting. The companys actual pool of customers influences the composition of its service offer (i.e., its core services, supplementary services and service delivery). The presence of a specific customer type was found necessary and sufficient as a condition for achieving core service innovations within the context of international financial services.