Title: Co-creation and co-profiting in financial services

Authors: Andrey Martovoy; Jennifer Dos Santos

Addresses: Centre de Recherche Public – Henri Tudor, Innovation Economics and Service Valuation Unit, 29 Avenue John F. Kennedy, L-1855, Luxembourg. ' Public Research Centre – Henri Tudor, 29 Avenue John F. Kennedy, L-1855, Luxembourg

Abstract: Co-creation can be useful to develop financial services relevant to customer needs. However, role of customers in financial innovation seems to be controversial. In this qualitative study we focus on: the characteristics of users who can qualify for co-creation, the process of co-creation, and profit-seeking customers. Our findings suggest that financial institutions tend to select customers who are more demanding and who have a possibility to cooperate (in retail markets), and those customers with whom they have longstanding and intertwined relationships (in corporate markets). Financial innovators differ in a way they cooperate with users. We proposed the typology of innovation and introduced the notion of co-profiting proved in the case of co-creation commercialised jointly; however, we did not find evidence of user-centred innovation commercialised by producer as well as user's innovation commercialised jointly.

Keywords: open innovation; co-creation; co-profiting; financial services; lead user; user-centred innovation; innovation typology; financial innovation; retail markets; corporate markets; commercialisation.

DOI: 10.1504/IJEIM.2012.050446

International Journal of Entrepreneurship and Innovation Management, 2012 Vol.16 No.1/2, pp.114 - 135

Published online: 31 Jul 2014 *

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