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Journal articles on the topic 'Financial innovation'
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Jian, Zhengzhao. "Financial Innovation and Financial Risk." Advances in Economics, Management and Political Sciences 19, no. 1 (September 13, 2023): 237–43. http://dx.doi.org/10.54254/2754-1169/19/20230142.
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The market economy has made new progress and development, and the development of the financial industry has gradually become internationalized. To occupy an important position in the fierce competition of the financial market and win more voice, Reform, and innovation are the development direction of financial enterprises in the future Financial innovation is a continuous reform of the financial system and its connotation, with innovations in financial technology and institutional innovation. Innovation represents a break from the norm, a change in the previous mode of financial supervision, the scope of financial activities, and the structure of financial products, but this inevitably. Although Financial innovation can eliminate some of the hidden financial risks, financial risks have not completely disappeared, so financial innovation is not omnipotent and still has great limitations. This article analyses the relationship between financial innovation and financial risk, as well as the characteristics of financial innovation, and provides feasible suggestions from various perspectives.
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Shapoval, Yuliia. "Relationship between financial innovation, financial depth, and economic growth." Investment Management and Financial Innovations 18, no. 4 (November 22, 2021): 203–12. http://dx.doi.org/10.21511/imfi.18(4).2021.18.
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The intrinsic property of modern economic development is financial deepening in the light of incremental spearheading financial innovation opportunities. The paper deals with the relationship between financial depth, financial innovation, and economic growth among 22 OECD economies over 2007–2018 by applying pooled OLS and fixed effect panel data regression analysis. The purpose of the paper is to empirically test whether the economic growth depends on financial depth, financial innovation, and institutional environment (Worldwide Governance Indicators). The findings shed light on the recent discussion on the pros and cons of financial innovation. The estimation results show that while financial depth is a strong predictor of economic growth across high- and upper-middle-income economies, financial innovation is a slightly weaker predictor. Despite the identified positive impact of financial innovation on economic growth, it is asserted that the negative effect of financial depth may indicate oversaturated financial market in developed countries. Сonsistent with the general notion that the institutional framework promotes the capacity of the financial sector for financial innovations implementation, this paper states that financial depth and financial innovations are better prerequisites of economic growth than institutional development. AcknowledgmentThe paper was funded as a part of the “Relationship between financial depth and economic growth in Ukraine” research project (No. 0121U110766), conducted in the State Institution “Institute for Economics and Forecasting of the NAS of Ukraine”.
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Mugane, Catherine, and Herick Ondigo. "The Effect of Financial Innovations on the Financial Performance of Commercial Banks in Kenya." International Journal of Finance and Accounting 1, no. 1 (June 2, 2016): 15. http://dx.doi.org/10.47604/ijfa.6.
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Purpose: The study sought to investigate the effect of financial innovations on financial performance of commercial banks in Kenya. The main problem was that there is an increase in the number of financial innovations, but whether the innovations in banking industry are the main determinants of financial performance is a hard to tell. Despite the significance of financial innovation, the effect of innovation on financial performance is still misunderstood.Methodology: The study adopted an explanatory research design. The population of the study was all the 43 commercial banks operating in Kenya in the study period. The study conducted a census on all the 43 commercial banks. The study used primary data. An ordinary linear regression model was used. The regressions were conducted using statistical package for social sciences (SPSS) version 20.Results: The study findings indicated that there is a negative and significant relationship between product innovation and ROA. The relationship between service innovation and ROA and also organizational innovation and ROA was found to be positive and significant. Based on the findings, the study concluded that commercial banks in Kenya in the study period had unsteady trends in ROA despite the fact that more financial innovations were taking place in the sector. The study also concluded that the relationship between product innovation and financial performance of commercial banks is negative and significant. Based on the study findings, the study also concluded that the relationship between service innovation and ROA and also organizational innovation and ROA is positive and significant.Unique contribution to theory, practice and policy: The study recommended that Commercial banks should implement effective product innovation strategies that won’t increase their operational risks which in turn affects their financial performance. The study also recommended that commercial banks should focus more and invest more in both service and organization innovation as the two will lead to better financial performance.
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KRASNOVA, Iryna, and Maksym SHCHEGLIUK. "INNOVATIONS IN FORMING FINANCIAL ECOSYSTEMS." Herald of Khmelnytskyi National University. Economic sciences 308, no. 4 (July 28, 2022): 19–25. http://dx.doi.org/10.31891/2307-5740-2022-308-4-3.
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In the rest of the world, up to 75% of GDP growth in the world’s most developed countries, the very beginning of innovations is established. The process of promoting financial innovations is shifted by the following factors: price volatility in most sectors of the market; informational asymmetry; inconsistency of the terms of the innovation process; high risk levels – political, financial, currency; lack of innovation infrastructure; unacceptability to innovation from the side of participants in the financial market; Insufficient value for the development of the system of financial law and protection of the rights of supporters of financial services. Irrespective of the importance of innovation shifts, look at the importance of technological innovations in the field of information security and communications. The result of which was the emergence of financial ecosystems, the relevance of such research is developing. In the article, the essence and determinants of the formation of financial ecosystems are identified. On the basis of the analysis of current trends in the development of financial markets, financial innovations, which are generated by these trends, have been developed. It is undeniable that the development of the digital economy is directly strategic for the development of financial innovations. The liberalization of financial funds, in the minds of the development of the digital economy, stimulated the emergence of a new type of bank development, with new business models that are based on a single platform of the financial market. It has been announced that the fintech industry is investing first for everything in the development of the financial market infrastructure, five fintech clusters have been seen. Promoted directly to the development of securitization of assets. It is emphasized that the formation of eco-system financial innovations should be set before the regulatory authorities for the promotion of such innovations and the development of digital technologies
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Radicic, Dragana. "Financial and Non-Financial Barriers to Innovation and the Degree of Radicalness." Sustainability 13, no. 4 (February 18, 2021): 2179. http://dx.doi.org/10.3390/su13042179.
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The aim of this study is to analyse the effects of barriers to innovation on firms’ propensity to engage in radical and incremental innovations. We look at innovative and potentially innovative firms and estimate the effect of three types of barriers—financial, knowledge and competition—on the propensity to radical innovation new to the world, radical innovation new to the market and incremental innovation. An empirical study has been performed, drawing on data collected from the German Mannheim Innovation Panel covering the period from 2014 to 2016. Empirical results reveal heterogeneous effects of barriers depending on the degree of radicalness. In particular, knowledge and competition barriers are an impediment to radical innovation, whereas financial and knowledge barriers reduce a probability of incremental innovation. Based on the findings, we discuss policy recommendations for mitigating barriers to innovation conditional on the degree of radicalness.
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R.C., Ejinkonye, and Okonkwo I.V. "Nexus Between Financial Innovation and Financial Intermediation in Nigeria’s Banking Sector." African Journal of Accounting and Financial Research 4, no. 3 (December 13, 2021): 162–79. http://dx.doi.org/10.52589/ajafr-vn7jrc1z.
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This study evaluated the relationship between financial innovation and financial intermediation in Nigeria. It seems that banks in Nigeria may have a problem of deposit-loan mismatch and losing customers to start-ups given increasing cost of deposits attributable to disruptive practice arising from financial innovations. The specific objectives of this study were to examine the relationship between financial innovation (value of the automated teller machine, internet banking, mobile banking, point of sale transactions) and financial intermediation (commercial banks deposit mobilization) in Nigeria for the period 2009–2018. This study was anchored on the financial innovation theory of Joseph Schumpeter, which states that technology creates opportunities for new profits and super profits as a result of increased investment by banks or financial institutions on products of innovation. The ordinary least square was used to estimate the parameters. The data used were extracted from the Central Bank of Nigeria statistical bulletin. The results showed that there is a positive and significant relationship between financial innovation (value of Automated Teller Machine) and financial intermediation (commercial banks deposit mobilization) in Nigeria; there is a positive but no significant relationship between financial innovation (internet banking) and financial intermediation (commercial banks deposit mobilization) in Nigeria; there is a positive but no significant relationship between financial innovation (mobile banking) and financial intermediation (commercial banks deposit mobilization) in Nigeria; and there is no positive and significant relationship between financial innovation (point of sale transactions) and financial intermediation (commercial banks deposit mobilization) in Nigeria. The f-test result showed that financial innovations proxies jointly related significantly to commercial banks’ deposits. The work concludes that financial innovations contributed to commercial banks’ deposits in Nigeria. The researchers recommended among others that banks should improve on the security of transactions done on their platforms, continue to improve and partner with start-ups in technological infrastructure, improve on power and network stability, deploy more innovative products, and improve on the efficiency of bank staff by regular training.
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Omollo, Lewis Otieno, Juliet Wanjira Karanu, and Moses Wafula Wekesa. "Contribution of Financial Innovations to Money Demand: A Case of Kenyan Financial Market." American Journal of Finance and Business Management 1, no. 1 (September 6, 2022): 11–25. http://dx.doi.org/10.58425/ajfbm.v1i1.21.
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Purpose: This study sought to assess how financial innovation has affected demand for money in Kenya.
Methodology: The research looked at the value of transactions made using modern innovations including ATMs, point-of-sale (POS), online banking, and phone banking. Under the cointegration, granger causality, and error correction modeling, the study used the ordinary least squares (OLS) regression methodology as the estimate method.
Findings: Financial innovation, according to the study, has an important role in growing money demand in a country by enhancing financial visibility, facilitating financial processes during trades, and enhancing financial competence. Financial system innovation in emerging nations such as Kenya indicates a potential for financial sector expansion. Financial innovation has shown to be a fundamental predictor of financial advancement, high-tech expansion, efficient financial market access, and hence better economic growth via the diversity of financial facilities.
Conclusion: Financial innovation has resulted in the development of employment opportunities in non-bank financial institutions. It has also led to integration of commercial bank, non-bank private lenders, insurance firms, and housing finance firms.
Recommendations: This study recommend the central bank of Kenya (CBK) to fine-tune its policies to ensure it is well suited to deal with the challenges posed by sophisticated financial innovations. CBK can increase its capability to predict the consequences of financial innovations and act quickly to counter any negative effect of financial innovation on the effectiveness of monetary policy. The study also recommend company and organizations managers to adopt financial innovations in order to boost service quality through efficient and quick service provision via innovations like mobile and online payment systems.
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Ndicu, Ndua Daniel. "Financial Innovations Risk, Financial Distress and Firms Value: A Critical Review of Literature." European Scientific Journal, ESJ 14, no. 10 (April 30, 2018): 99. http://dx.doi.org/10.19044/esj.2018.v14n10p99.
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Throughout history, society has always sought for ways and means of responding to life challenges and opportunities. Several scholars support the need for innovation for a firm to remain a good performer during its existence, though the level of risks associated with this kind of undertaking has not received the coveted attention. With the use of financial innovations companies can safely utilize current or go for more risky and up to date technologies that can have a drastic and positive impact on their ventures. Additionally, financial innovations have had a tremendous impact in enriching finance and enhancing the economic prosperity of many firms. However, this financial innovation may also be ruinous to the organization if it is overboard. This study thus sought to review the extant theoretical and empirical literature relating to risky financial innovations, financial distress and firm value. Specifically the study was guided by the following objectives: To review extant theoretical literature on the constructs of risky financial innovations, financial distress and firm value; to review past empirical literature on the constructs of risky financial innovations, financial distress and firm value; to identify the emerging theoretical and empirical gaps that form the basis of future research. Additionally, the study sought to propose a theoretical model to respond to the identified gaps. The study has concluded that financial innovation has positive impact on financial performance and firm value, there is direct relationship between financial innovation and financial deepening and financial innovation enhances growth of the firm.
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Molem, Sama C., Elle S. Messomo, and Tameta Serge. "The Effect of Financial Innovation on the Financial Performance of Financial Institutions in Cameroon." International Journal of Finance 9, no. 2 (April 27, 2024): 59–74. http://dx.doi.org/10.47941/ijf.1831.
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Purpose: The study sought to investigate the effect of financial innovations on financial performance of depository financial institutions in Cameroon. The specif objectives of the study were to examine the effect of product, process and institutional innovation on the financial performance of financial institutions Methodology: The study adopted a cross sectional research design. Purposive and convenience sampling methods were used to select 210 respondents from 75 financial institutions in Cameroon. Primary data was collected using a self-administered questionnaire. Data collected was sorted, coded and analyzed using the Statistical Package for Social Sciences (SPSS v22.0). Data collected was analysed descriptively with the use of mean and inferentially with the use of ordered logit regression model and Pearson correlation metrix to establish the relationship between the dependent variable and the independent variables and the results were presented in tables. Findings: The findings show that increased financial innovation through process and institutional innovation can increase financial performances. For the basic regression used to find banks’ performance, the analysis indicates that process and product innovation, measured by the ATM, POS, mobile banking and credit card, significantly influences financial performance of financial institutions. Although there is no significant effect of institutional innovation on financial performance, there is still a positive effect. Unique Contribution to Theory, Policy and Practice: The study therefore recommended that further study can be carried out on the effect of financial innovation on performance of depository financial institutions using different methods. In addition, depository financial institutions should transform banking service by adapting to process innovation so as to increase access to financial services.
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Sani, Ibrahim Abubakar, John Olu-Coris Aiyedogbon, and Obumneke Ezie. "Nexus between Financial Innovation and Financial Stability in Nigeria." East African Scholars Journal of Economics, Business and Management 7, no. 09 (September 30, 2024): 374–90. http://dx.doi.org/10.36349/easjebm.2024.v07i09.001.
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Motivated by the cashless policy drives of the Central Bank of Nigeria to digitalize the Nigerian payment system and the quest for ensuring financial stability, this paper examined the nexus between financial innovations and financial stability in Nigeria. The paper employed disaggregated and aggregated indices in measuring financial innovation and financial stability and analyzed the data using the Dynamic Ordinary Least Square (DOLS). The paper conducts robustness checks using the Autoregressive Distributed Lag (ARDL) model and by employing alternative proxies. The result indicates the presence of a long-run equilibrium relationship between disaggregated measures of financial stability and financial innovation. The outcome was consistent using alternative methods. However, the study also finds the absence of a long-run equilibrium relationship between the aggregated proxy of financial innovation and financial stability, nonetheless, other bank-base and macroeconomic indicators appear to influence financial stability. The impact of the various measures of financial innovation on financial stability appears to be mixed in both the main and robustness analysis, implying that technology-based financial products promote financial stability but are associated with a cost. Therefore, the Central Bank of Nigeria is encouraged to incentivize the use of financially innovative channels toward enhancing the stability of the Nigerian financial system, while employing appropriate prudential tools to safeguard any unsavoury consequences of innovation.
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Kombe, Victor. "Effects of Financial Innovations on Performance of Commercial Banks in Kenya." African Journal of Commercial Studies 2, no. 1 (October 21, 2023): 12–26. http://dx.doi.org/10.59413/ajocs/v2.i1.2.
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Understanding how financial innovations affect Kenya's commercial banks' performance is the main goal of the current study. The United States has long been a leader in financial innovation. However, in terms of financial innovation, China and African nations like Kenya and Nigeria have taken the lead globally. Kenya presently leads the world in mobile money services. The conflicting results of the positive and negative performance of commercial banks as a result of financial innovations served as the impetus for the current study. A literature review technique was adopted in the research. The study's overall conclusions demonstrate that financial innovations improve financial performance, as seen by an increase in transactions, the creation of convenience, and decreased maintenance costs. Banks that are incorporating financial innovations are therefore better positioned to boost their revenue and customer satisfaction, both of which are linked to increased performance. According to the report, authorities should make sure that there are laws in place that can foster an environment where banks may keep innovating.
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Arthur, Keren Naa Abeka. "Financial Innovation and its Governance." Journal of Business and Enterprise Development (JOBED) 8 (February 24, 2021): 241–78. http://dx.doi.org/10.47963/jobed.v8i0.124.
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Over the past decades, financial innovation has catalysed the development of economies in many ways. Despite this, the introduction, commercialisation and use of innovations in finance in new and unexpected ways in society has led to negative impacts globally. To this end, scholars are becoming interested in understanding how financial innovations can be managed to ensure a positive net benefit globally. Using a qualitative research design, this paper investigates the questions of how innovation takes place and how it is governed within the insurance broking industry. The study further engages in a cross-case analysis where findings from the empirical work are discussed in relation to previous empirical study conducted in the asset management and bank customer relationship management space. Findings suggest the existence of a more nuanced continuum of practices, ranging from unstructured approaches through informal to formal models where the phasing of innovation activities was clearly punctuated by decision gates.
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Carter, Michael. "Financial Innovation and Financial Fragility." Journal of Economic Issues 23, no. 3 (September 1989): 779–93. http://dx.doi.org/10.1080/00213624.1989.11504938.
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Egorov, Andrey. "Financial Innovation and Financial Risks." Procedia Computer Science 214 (2022): 441–47. http://dx.doi.org/10.1016/j.procs.2022.11.197.
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Ghanem, L. "The economic essence of financial innovation and innovative transformation of financial services." Economics and Management 28, no. 11 (November 29, 2022): 1169–80. http://dx.doi.org/10.35854/1998-1627-2022-11-1169-1180.
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Aim. The presented study aims to reveal the economic essence of financial innovation and the specific features of its evolutionary growth, which correspond to the current and innovative developments in financial services.Tasks. The authors analyze and justify the transition from the concept of innovation to the concept of financial innovation from the scientific perspective; examine the evolutionary characteristics of financial innovation that correspond to the current development of financial services; develop a mechanism that facilitates the growth and spreading of financial innovation.Methods. This study is based on the analysis of works of reputable scientists and authors devoted to defining the concept of financial innovation, its characteristics, and stages of development.Results. The complex concept of financial innovation evolves with the development of science and technology. Scientists approach the concept of financial innovation differently, which leads to the lack of a single definition of this concept. Innovation plays a key role in the efficient functioning of the financial market and economic growth. The most important characteristics of financial innovation related to continuous development are identified. Several proposals are formulated to facilitate the growth and development of financial innovation while corresponding to the innovative transformation of financial services at the present time.Conclusions. A study of financial innovations and their various characteristics makes it possible to understand the impact of current technological developments on the traditional concept of financial innovation, limited only to the banking sector, in addition to identifying shortcomings that help to form a balanced mechanism that ensures the efficient growth of financial innovation.
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Bara, Alex, and Calvin Mudzingiri. "Financial innovation and economic growth: evidence from Zimbabwe." Investment Management and Financial Innovations 13, no. 2 (June 3, 2016): 65–75. http://dx.doi.org/10.21511/imfi.13(2).2016.07.
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The role of financial innovation on economic growth in developing countries has not been actively pursued. Stemming from the finance-growth nexus, literature suggests that financial innovation has a relationship to growth, which could be either positive or negative. Implicitly, financial innovation has a good and a dark side that affects growth. This study establishes the causal relationship between financial innovation and economic growth in Zimbabwe empirically. Using the Autoregressive Distributed Lag (ARDL) bounds tests and Granger causality tests on financial time series data of Zimbabwe for the period 1980-2013, the study finds that financial innovation has a relationship to economic growth that varies depending on the variable used to measure financial innovation. A long-run, growth-driven financial innovationis confirmed, with causality running from economic growth to financial innovation. Bi-directional causality also exists after conditionally netting-off financial development. Policies that enhance economic growth inter-twined with financial innovation are essential, if developing countries, such as Zimbabwe, aim to maximize economic development
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Desalegn, Goshu, and Anita Tangl. "Forecasting green financial innovation and its implications for financial performance in Ethiopian Financial Institutions: Evidence from ARIMA and ARDL model." National Accounting Review 4, no. 2 (2022): 95–111. http://dx.doi.org/10.3934/nar.2022006.
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<abstract> <p>Green innovation is the creation of new and competitive products, services, processes, procedures and systems designed to use natural resources at a minimum level and to provide better quality of life on behalf of all that respects sustainability of the nature and of the future generations. The study objective was to examine the relationship between green innovation and financial performance. The study used an explanatory research design and a quantitative research approach to achieve the study's objective. Secondary time series data collected quarterly during the study period (2014–2020) was utilized to run the regression model. Autoregressive moving average (ARIMA) was used to forecast the growing level of green financial innovation transactions, and autoregressive distributed lag model (ARDL) was used to examine the effect of green financial innovation transactions on financial performance. According to forecasted results, on average green financial innovation transaction is expected to grow by 11 percent each quarter, and its impact on financial performance is found positive and significant in the short run. However, the long-run estimation of ARDL shows the positive and insignificant effect of green financial innovation on financial performance. Based on the study's findings, we recommend that the banking sector focuses on adopting green financial innovations to improve financial performance by taking into account both the short-run and long-run benefits of the products. At the same time, we suggest that the sector focus on those green financial innovations which have the lowest adoption and development costs compared to others since the long-run effect affects the overall financial performance of the sector. The main contribution of this study is to provide future indication on the relationship between the two variables in order to provide proper decision making in a bid to make green innovation investment.</p> </abstract>
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Mabula, Juma Buhimila, Han Dong Ping, and Moshi James. "The Impact of African Firms’ Utilization of Financial and Technology Resource on Innovation: A Simple Mediation." SAGE Open 13, no. 1 (January 2023): 215824402311530. http://dx.doi.org/10.1177/21582440231153037.
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This study aimed at analyzing the influence of the use of technology on the use of financial services and innovation of SMEs in Africa. The study further analyzes the mediating role of the use of financial services on firm use of technology-innovation relationships among SMEs in Africa. The study utilizes data retrieved from the enterprise survey portal. The analysis employs multiple regression to test the models using SPSS, and the Sobel test further examines mediation. The results reveal a significant positive association of firm use of technology on the use of financial services and innovation. Also, there is a positive association between the use of financial services and SME innovations in Africa. The study found partial mediation of the use of financial services on the use of technology-innovation relationships. The results have implications on African SMEs need to amplify the sensitization and emphasis on fostering the use of technology in innovating new products and processes. While promoting innovation, the use of technology can enhance financial inclusion resulting in wider and deeper financing options for enterprises in Africa, which are deeply hampered by financial and technological vulnerability.
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Plosser, C. I. "Financial Econometrics, Financial Innovation, and Financial Stability." Journal of Financial Econometrics 7, no. 1 (November 27, 2008): 3–11. http://dx.doi.org/10.1093/jjfinec/nbn014.
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Oluganna, Eunice, Tajudeen Lawal, and Daniya Adeiza Abdulazeez. "EFFECT OF FINANCIAL DEVELOPMENT ON FINANCIAL INNOVATION IN NIGERIA." JURNAL AKUNTANSI DAN AUDITING 15, no. 2 (October 6, 2019): 150–64. http://dx.doi.org/10.14710/jaa.15.2.150-164.
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Financial sector is crucial for the development of a well-functioning market as it facilitate capitalinflows, mobilize savings for productive investment and facilitates the conduct and growth of aneconomy in the world. Despite the importance of financial sector development in Nigeria, financialinstitution operating in financial market were confronted with drastic changes where by old waysof doing business were no longer profitable and sustainable and unable to acquire fund with theirtraditional financial instruments. Against this background, the study investigated the effect offinancial sector development on financial innovation in Nigeria. The study employed secondarydata obtained from central bank of Nigeria statistical bulletin and World Bank database between2011 and 2017. The data obtained was subjected to system General Method of Analysis (GMM)estimator. The study concluded that upward trend of process innovation significantly influence thein depth of finance. The study recommends policy makers should design policies which willpromote and enhance the relationship between financial innovation and financial development inother to increase the supply and provision of financial service.
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Smit, B., Frederik J. Mostert, and Jan Hendrik Mostert. "Financial innovation in retail banking in South Africa." Corporate Ownership and Control 13, no. 3 (2016): 393–401. http://dx.doi.org/10.22495/cocv13i3c2p11.
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Innovation in general refers to an action to do something differently. Financial innovation, which embodies the topic of this research, has therefore the creation of financial products, services and/or systems in mind in order to satisfy the needs of customers and clients and ultimately to improve the financial performance of the enterprises concerned. As the requirements of customers and clients change continuously, financial innovations are important for the survival of enterprises. Capital investments to accommodate financial innovations should be considered very carefully as they will determine the business activities of an enterprise for many years. The objective of this research focuses on the improvement of financial decision-making by executive managers in retail banking when they are engaging in financial innovations. A literature study represented the start of this research to provide a proper basis for compiling the empirical study’s questionnaire. The empirical study consisted of an opinion survey where the three pillars of financial innovation were addressed, viz.: products and services innovation, organisational innovation and distribution channel innovation. The empirical study indicated amongst others the importance of these three pillars of financial innovations as perceived by eight of the largest banks in South Africa. Furthermore, the obstacles to financial innovations also received the necessary attention. The empirical results of this research should be valuable to countries which are classified as developing economies with emerging market economies, as South Africa is a member of this group
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Yoshida, Satoru. "Japanese Financial Innovation." Japanese Economic Studies 15, no. 4 (July 1987): 67–96. http://dx.doi.org/10.2753/jes1097-203x150467.
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Naa Abeka Arthur, Keren. "The emergence of financial innovation and its governance - a historical literature review." Journal of Innovation Management 5, no. 4 (March 12, 2018): 48–73. http://dx.doi.org/10.24840/2183-0606_005.004_0005.
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This paper reviews the literature from diverse disciplines in order to trace historically, the emergence of financial innovation and its governance. It starts with a charting of the occurrence of financial innovations throughout history, followed by a chronological mapping of the introduction of mechanisms to govern these innovations. It then discusses findings from the review in order to shed light on the extent to which financial innovation governance approaches used throughout history were sufficiently robust to ensure the emergence of responsible financial innovation. Findings show changing drivers of financial innovation across history with no evidence of specific governance mechanisms for the process of financial innovation itself. What exists are mechanisms for governance of the financial sector, in the form of legal frameworks, policies and self-regulatory mechanisms that place emphasis on regulation of the products of financial innovation after these have been developed and implemented. The paper is concluded with a brief discussion on implications for theory.
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CHIU, Iris H.-Y. "A Rational Regulatory Strategy for Governing Financial Innovation." European Journal of Risk Regulation 8, no. 4 (October 3, 2017): 743–65. http://dx.doi.org/10.1017/err.2017.50.
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AbstractModern financial regulation has predominantly been economically-driven,1 progressing from addressing market failures to making markets more competitive and work better.2 The UK Financial Conduct Authority is expressly mandated to pursue regulatory objectives that maintain market integrity and protect consumers (addressing market failures) and to promote competition (making markets work better).3 Both the FCA and its sister regulator, the Prudential Regulation Authority (for banks), have recently adopted innovative regulatory initiatives to promote technologically-driven innovation, aimed at making markets work better. These initiatives are also a response to the recent explosion of technologically-led financial innovation outside of the regulatory perimeter.In promoting financial innovation, we argue that the regulators have insufficiently focused on the need to govern financial innovation more generally. Although this concern may seem premature, the regulatory innovations are increasingly extending the perimeter for regulatory oversight of financial innovations. As the regulatory innovations have the potential to develop into more mature regulatory frameworks for governing financial innovation, we argue that regulators should manage the risks of their current approach and develop a regulatory strategy framework for balancing regulatory objectives and developing regulatory policy. We propose a framework anchored in rationality, consistency and accountability in governing financial innovation.
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Mishchenko, Svitlana, Svitlana Naumenkova, Volodymyr Mishchenko, and Dmytro Dorofeiev. "Innovation risk management in financial institutions." Investment Management and Financial Innovations 18, no. 1 (February 17, 2021): 190–202. http://dx.doi.org/10.21511/imfi.18(1).2021.16.
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The extensive use of financial technologies and innovations in the provision and utilization of financial products and services causes new risks that require constant attention. The article aims to improve innovation risk management methods to increase the operational stability of financial institutions in Ukraine. By generalizing international practice, the types of innovation risks are classified, and their impact on the activities of financial institutions and consumers is characterized. The attention is drawn to the control strengthening over the impact of operational and regulatory risks, based on important theoretical provisions contained in WBG, BIS, BCBS, and FSB documents. An organizational scheme for the interaction of a financial institution and an IT company is proposed to conclude “smart contracts” based on the use of a cloud service and blockchain technology. The authors propose additional methods of insurance protection and compensation for losses caused by the implementation of risks of using ICT and innovation based on creating the Collective Risk Insurance Fund of financial institutions; offer approaches to the calculation of variable and fixed parts of the contribution to the insurance fund for certain groups of financial institutions. It is concluded that to maintain the proper operational stability of financial institutions in Ukraine, it is necessary to introduce additional collective compensation methods for the risks of innovation and the strengthening of cyber threats.
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Whitaker, Stephan David. "Financial innovations in municipal securities markets." Journal of Public Budgeting, Accounting & Financial Management 30, no. 3 (September 3, 2018): 286–314. http://dx.doi.org/10.1108/jpbafm-02-2018-0006.
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Purpose The purpose of this paper is to measure how frequently innovative financial products appeared or became widely adopted in the municipal securities markets over the last two decades; and also investigate what types of issuers adopted the innovations, the relationship between yields and innovation and the patterns of diffusion within states. Design/methodology/approach Using comprehensive data on municipal securities issued from 1992 to 2015, the author searches for financial innovations as defined in the literature. The author uses issuer fixed effects models to characterize the relationship between yields and use of innovative products. Other models provide estimates of the conditional correlations between issuer characteristics and innovation usage. Finally, the author fits trend models to identify significant differences in the pace of adoption between different types of issuers. Findings In total, 35 security features fit one or more definitions of innovation. Extensive analysis is presented for four innovations that represent significant transfers of risk: variable rates, put options, corporate backers and derivatives. Small issuers used these innovative products, but the largest issuers adopted them to a greater extent. Usage appears to diffuse within states. Issuance of innovative securities fell during the financial crisis and has not recovered. Novel securities since the financial crisis have been created by legislation rather than by market participants. Research limitations/implications The data appear to cover all or nearly all municipal securities, but they do not cover loans or other types of municipal borrowing. Practical implications This analysis reveals that financial innovations in municipal securities markets usually take the form of a rare practice becoming widespread rather than a never-before-seen feature appearing in the market. Changes in response to legislation are an exception. Social implications Regulators concerned about financial stability can monitor the expansion of formerly rare securities features. This will be informative about new risks or transfers of risk in the market. They can also anticipate that expanded use of an innovation by states and high-volume issuers will be followed by adoption of the innovations by smaller, less sophisticated issuers in subsequent years. Originality/value This paper is the first attempt to empirically analyze the extent of financial innovation in municipal securities. Existing public finance literature has proposed definitions of financial innovation, qualitatively documented some specific innovations and empirically analyzed others. However, no previous study has empirically analyzed the entire municipal securities market for all possible innovations.
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Rahayu, Rahyuni, Wana Mariska, and Muhammad Fauzan Garantjang. "E-PAYMENT INNOVATION IN IMPROVING BANK INDONESIA'S FINANCIAL PERFORMANCE." International Journal of Economics, Business and Accounting Research (IJEBAR) 6, no. 1 (March 23, 2022): 381. http://dx.doi.org/10.29040/ijebar.v6i1.4663.
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Business competition in the financial services industry keeps the banks constantly innovating in services and products. One of the innovations made by the banking industry is e-payment.This study aims to determine the effect of e-payment on financial performance with moderated bank size. The population in this study is banking companies listed on the Indonesian Stock Exchange (IDX) in 2014-2016 as many as 43 banks. Sample selection method used is purposive sampling, so that obtained the number of samples of 10 banks. The data obtained were analyzed using Moderated Regression Analysis (MRA). The results of this study indicate that e-payment has a significant positive effect on financial performance and bank size strengthen the relationship between e-payment to financial performance. The results indicate that innovation in adopting e-payment can improve bank financial performance. The banks need to pay attention to innovation in financial services as a competitive strategy to improve financial performance.
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Shah, Shangram Bahadur, Jirakiattikul Sopin, Kua-Anan Techato, and Bibek Kumar Mudbhari. "A Systematic Review on Nexus Between Green Finance and Climate Change: Evidence from China and India." International Journal of Energy Economics and Policy 13, no. 4 (July 9, 2023): 599–613. http://dx.doi.org/10.32479/ijeep.14331.
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The efforts of developing economies are mainly concerned with integrating different socio-economic requirements. In contrast, those economies only concentrate on the immediate impact to be resolved instead of focusing on efforts to mitigate long-run effects such as climate change: a global challenge due to long-term shifts in weather and temperature pattern. Climate change has resulted in global warming, severe storms, and increased droughts, including risks to human health, loss of biodiversity, poverty, and displacement, whereby green finance is considered a primary solution to mitigate such problems that can ensure sustainable environmental outcomes while promoting the agenda of, decarbonization, green tech innovation, green financial innovation, and green growth. This systematic review paper studies the nexus between green finance and climate change in China and India. This article follows Preferred Reporting Items for Systematic Review and Meta-Analysis (PRISMA) guidelines and reviews Scopus and Web of Science indexed peer-reviewed articles of five years published from 2018 AD to 2022 AD and 58 full-text articles were reviewed. The paper's significant findings reveal that innovation in finance and technology are the major frontiers of green financing that are critical in addressing the problems of climate change. It is environmental regulations that accentuate the process of green financial innovation and green technology innovation. However, green financial innovation is also a catalyst for green technology innovation. Green financial innovations are related to developing and innovating green financial products such as green bonds or loans, green insurance or securities, ESG rating, perception of environmental issues, and carbon drifting. On the other hand, green tech innovations are innovations in energy, transport, construction, and buildings. Innovations in technology and finance backed by environmental regulations strengthen the effort toward decarbonization. Regulatory interventions in green financing have more pronounced effects on emission reduction. Such actions are oriented towards green growth where the desired sustainable outcomes are realized regarding climate change adaptation, mitigation, or carbon neutrality.
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Agaba, Agaba Moses, and Mpirirwe Christine. "Financial Innovations And Financial Inclusion Among Commercial Banks in Uganda." International Journal of Entrepreneurship and Business Management 2, no. 1 (May 26, 2023): 43–58. http://dx.doi.org/10.54099/ijebm.v2i1.574.
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This study was carried out to ascertain the impact of financial innovations by commercial banks on financial inclusion in the Kabale district. The specific goals were to ascertain the relationship between institutional innovations and financial inclusion, examine the relationship between process innovation and financial inclusion among rural households, and examine the relationship between product innovation and financial inclusion among rural households. The studies descriptive and cross-sectional research designs combined qualitative and quantitative methods for data collecting and analysis. Using questionnaires and interviews, data was gathered from a sample of 396 respondents as well as additional important informants. Microsoft EXCEL and SPSS Version 21.0 were used to analyze the data and produce both descriptive and inferential statistic . The study's findings support the statistically significant link between commercial banks' financial innovations and rural families' access to credit. As more clients choose mobile banking, the report advises banking institutions to develop measures to improve security in the platform. The report also advises making these platforms straightforward and simple to use in order to attract more users to the business. Additionally, because mobile banking has an impact on financial inclusion, banks should make sure to support mobile banking services by incorporating mobile phone usage as one of their innovations
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Różański, Jerzy, and Nataliya Voytovych. "Financial Innovations in International Corporations. A Global Perspective." Annales Universitatis Mariae Curie-Skłodowska, sectio H – Oeconomia 57, no. 3 (December 11, 2023): 221–39. http://dx.doi.org/10.17951/h.2023.57.3.221-239.
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Theoretical background: Modernized technology and digital transformation in the economy has changed business paradigms and innovation. The prevalence of contemporary digital financial innovation makes it easier for businesses to grow. New services, processes, or business models made feasible by digital technologies are increasingly referred to as financial innovation. For many firms, the use of information technology (IT) systems and the associated software has progressed from being merely supportive to becoming a cornerstone of daily operations. Big shifts in society’s thinking accompany great innovations. The issues of financial innovations are examined in this research. We assume that financial breakthroughs will lead to a more effective use of resources, which will result in higher levels of capital productivity and economic expansion. This effect has been produced by numerous financial innovations. Purpose of the article: The main research objective of the study is to examine the effects of financial innovation on development of international corporations in connection with their national environments. Research methods: The analysis of the accounts of selected companies (case studies) was one of the research methods. We are focused on financial innovations in big Internet companies. There were conducted the macroeconomic comparison of the evolution of financial innovations over time (2010–2021) as well as correlation and regression analysis. The expenditure of financial innovation was used to gauge financial performance. In addition, cases and examples of financial innovations made by a small number of carefully chosen significant worldwide firms while taking into account the particulars of their operations were presented. We analyzed the application of several examples for our study. Main findings: The results indicate a more nuanced continuum of practices, from unstructured methods through informal to formal decisions. Our findings demonstrate that financial innovations significantly and favourably affect the financial development of international corporations such as Alibaba Group, Amazon, Alphabet, Apple, Meta, Microsoft and Samsung.
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Forrer, Acie S., and Donald A. Forrer. "Analysis Of The Relationship Between Economic Cycle Swings And Adoption Rate Models Of Financial Innovation Diffusion." Journal of Business & Economics Research (JBER) 13, no. 2 (March 19, 2015): 103. http://dx.doi.org/10.19030/jber.v13i2.9179.
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The United States financial crisis, starting with the credit boom of 2007 and ending with the failure of Lehman Brothers in September 2008, has led to a loss of confidence in the United States financial system. The Financial Crisis Inquiry Commission indicated that the financial crisis affected over 26 million Americans. Many scholars have attributed the crisis to financial innovations, such as mortgage backed securities, adjustable rate mortgages and no-income verified loans, as key innovations that led to the market collapse. Financial innovations have had both positive and negative impacts on the financial industry. Providing a framework that describes the relationship between economic cycle swings and adoption rates of innovative financial instruments can provide greater stability and predictability in financial innovation diffusion, which can lead to more stable returns for shareholders and enhance the public interest through a healthy, innovative and more stable financial industry. An abbreviated evidence-based systematic review was completed on financial innovations that led to the financial crisis of 2007. The research suggests that there is an equilibrium period of time that financial organizations can adopt innovation to avoid unintended consequences like the recent financial crisis. Providing a framework of adoption time can demonstrate where financial innovations can be absorbed to provide the organization with the ability to financially innovate during pro and counter cyclical economic periods. Through an understanding of the timing of financial innovations as they occur in economic cycles, managers of financial organizations can choose the adoption period of time more carefully which could have averted the financial crisis that affected millions of Americans.
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Chen, Ting-Hsuan, and Jin-Lung Peng. "Statistical and bibliometric analysis of financial innovation." Library Hi Tech 38, no. 2 (December 23, 2019): 308–19. http://dx.doi.org/10.1108/lht-09-2018-0140.
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Purpose The purpose of this paper is to review and analyze the characteristics of the literature related to financial innovation, because financial technology (fintech) has been appropriately applied in academic circles as well as in the policy-making arena. The authors further estimate the implications of financial innovations for bank performance and liquidity risk. Design/methodology/approach The authors use a sample of commercial banks operating in Taiwan over the period 2010–2017 and utilize three proxies for financial innovation including R&D expenditures, financial patents (i.e. innovation applications) and financial news such as that concerning fintech (i.e. innovation intentions). Findings The effects of financial innovation on bank performance are mixed, with too much of R&D expenditures having the worst bank performance, whereas innovation intentions benefit their performance. The paper concludes that financial innovation does increase banks’ liquidity risk, thus supporting the innovation-fragility hypothesis. Originality/value It is an important issue in academic circles as well as in the policy-making arena to ensure that financial innovation has been appropriately applied.
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Xiong, Xiong, Jin Zhang, Xi Jin, and Xu Feng. "Review on Financial Innovations in Big Data Era." Journal of Systems Science and Information 4, no. 6 (December 25, 2016): 489–504. http://dx.doi.org/10.21078/jssi-2016-489-16.
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AbstractThe rise of Big Data brings the financial innovation opportunities as well as challenges. This paper reviews different fields of big-data-based financial innovations as well as the scientific discoveries and theoretical breakthroughs of risk analysis with respect to these financial innovations. Based on the current research status, several key problems are put forward and their relative solutions are discussed. The three mean aspects are listed as the pricing and risk measuring for data-driven financial innovation products or services; the changes that data-driven financial innovation would bring to finance industry, which involve operation, resources allocation and ecosystem; and questions and solutions of systemic risk management based on Big Data analytics. Finally, predictions towards the hotspots frontier and developing trends for further data-driven financial innovation are proposed.
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Błach, Joanna. "Barriers to Financial Innovation—Corporate Finance Perspective." Journal of Risk and Financial Management 13, no. 11 (November 8, 2020): 273. http://dx.doi.org/10.3390/jrfm13110273.
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This paper addresses the application of financial innovations from the corporate finance perspective. The objective is to identify and prioritize the main types of barriers to the implementation of financial innovations by nonfinancial firms. The motivation behind the study lies in the importance of financial innovations for the firms’ ability to create value. As proven by the extensive literature review, comprehensive studies on financial innovation applications by nonfinancial firms are relatively rare. To cover this cognitive gap, the theoretical argumentation followed by the discussion of results of the empirical research are presented in this paper. The paper provides the results of two-stage survey research, aiming to find opinions of financial managers (end-users) and experts (creators of innovation) on the main barriers to financial innovations in Poland. According to managers, the most important are exogenous barriers, including: (1) Unclear tax and accounting regulations, (2) complex construction of financial innovations, and (3) transaction costs related to their application. On the other side, the experts from financial institutions recognized the greater importance of endogenous factors such as: (1) Lack of sufficient knowledge about financial innovations and (2) the reluctance to change observable in many firms. This study contributes to the ongoing debate on financial innovations by adding the perspective of corporate financial strategy. It also offers insights into the potential actions (at the institutional and individual level) aiming to reduce the barriers and support the implementation of financial innovations by nonfinancial firms.
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Alhassan, Tijani Forgor, Ahou Julie Kouadio, and Dadson Etse Gomado. "Financing innovative development of the African economies: the role of digitalization and financial innovations." RUDN Journal of Economics 28, no. 3 (December 15, 2020): 429–39. http://dx.doi.org/10.22363/2313-2329-2020-28-3-429-439.
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The article examines the relationship between financial innovation (mobile banking) variables in sub-Saharan Africa. Mobile banking (also known as mobile money) is one of the main financial innovations in the sub-Saharan region, and it is a system through which non-bank residents (residents without bank accounts, etc.) receive financial services. The overall importance of financial innovation in today’s digital and knowledge-based economy, and indeed, innovative development, inspired this study. Using a partial linear regression model, we analysed the International Monetary Fund data set, the World Bank’s national economic data, and mobile banking data from GSMA for the period from 2011 to 2017. A negative correlation was found between these variables and growth, as well as financial development, but a positive relationship was established between financial development and economic development. This positive relationship re-confirms the argument that financial development affects economic growth. It is recommended that policy makers develop and implement the necessary policy tools that can promote this form of financial innovation, and thus link its benefits to the national economy in general.
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Maghfuriyah, Alfi, Revita Desi Hertin, Hadi Wijaya, Febria Anjara, Feri Nugroho, Nora Listiana, and Nurul Aslamiah Istiqomah. "Green Technology Innovation and Its Impact on Financial Performance with the Moderation of Green Image and Green Subsidies in SMEs in Depok City." Journal of Environmental Economics and Sustainability 1, no. 4 (August 30, 2024): 7. http://dx.doi.org/10.47134/jees.v1i4.449.
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This study aims to explore the impact of green technology innovation on the financial performance of SMEs in Depok City, Indonesia. With a focus on green process and product innovations, the research also examines the moderating effects of green image and green subsidies. The study employs Structural Equation Modeling (SEM) to analyze data collected from 387 SMEs, offering insights into the complex relationships between these variables. The results reveal that green process innovation significantly influences green product innovation, which in turn, positively impacts financial performance. The mediating role of green product innovation underscores the importance of integrating process and product innovations for financial success. Additionally, the study finds that a strong green image enhances the positive relationship between green product innovation and financial performance, highlighting the importance of environmental branding. However, contrary to expectations, green subsidies do not significantly moderate the relationship between green product innovation and financial performance.
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Kerr, William R., and Ramana Nanda. "Financing Innovation." Annual Review of Financial Economics 7, no. 1 (December 7, 2015): 445–62. http://dx.doi.org/10.1146/annurev-financial-111914-041825.
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Zhao, Hongxin, and Li Han. "The Development Path of Financial Promotion of Science and Technology Innovation in the Context of New Quality Productivity Development." Transactions on Economics, Business and Management Research 7 (June 5, 2024): 15–24. http://dx.doi.org/10.62051/xj7ez708.
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Science and technology innovation is the kernel of developing new quality productivity, and finance has an important role in promoting science and technology innovation. Based on this, this paper studies the path of financial boosting of science and technology innovation, selects the national panel data from 2013 to 2022, adopts the entropy value method to determine the weight of each index and calculate the comprehensive value, and establishes the VAR model of financial input and science and technology innovation development. It is found that 35% of the changes in the development of science and technology innovation can be explained by financial inputs, and further puts forward suggestions to improve the breadth, depth and precision of financial services for science and technology innovation in four aspects: innovating the form of financial inputs, improving the matching precision between financial services and science and technology innovation needs, innovating the financial service system and optimizing the financial ecological environment, so as to provide reference and reference for the formation and development of the development of new-quality productivity.
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Hai, Benlu, and Haitao Li. "More Innovation, More Money?Innovation Performance, Financial Constraints, and Financial Performance." Academy of Management Proceedings 2019, no. 1 (August 1, 2019): 16815. http://dx.doi.org/10.5465/ambpp.2019.16815abstract.
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Chukwunulu, J. I., and S. N. O. Ibenta. "Financial Innovation and Efficiency of Financial Intermediation in Nigeria." African Journal of Accounting and Financial Research 4, no. 2 (June 7, 2021): 77–87. http://dx.doi.org/10.52589/ajafr-mfzizeeq.
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This study investigated the effect of financial innovation on efficiency of financial intermediation of commercial banks in Nigerian between 2008 and 2018. The study used secondary data obtained from the Annual reports and Accounts of the Central Bank of Nigeria (CBN). The explanatory variables of the study are the product innovations in the banking sector namely: volume of automated teller machine transactions (ATM), volume of point-of-sale transactions (PoS), volume of Internet banking transactions (IBT) and volume of Mobile banking transactions (MBT). The dependent variable is the financial intermediation efficiency proxied by interest rate spread, which is measured by the difference between maximum lending rate and savings rate. A multiple regression model developed for the study was analysed with the help of Ordinary Least Square (OLS) regression technique. The result from the descriptive statistics indicated that financial intermediation in Nigeria is inefficient. The results showed that ATM, IBT and MBT have insignificant positive effects on financial intermediation while PoS has negative effects on financial intermediation efficiency. Further results indicated that the 57% change in financial intermediation efficiency explained by financial innovation is not statistically significant. The study therefore concluded that financial innovation in itself is not a determinant of the efficiency of the intermediation process in Nigeria. It is then recommended that the regulatory authority among others should make policies to increase the savings rate, so that the surplus unit will be encouraged to make their funds available to the banks for lending.
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Li, Yanru, Guanglin Sun, Qiang Gao, and Changming Cheng. "Digital Financial Inclusion, Financial Efficiency and Green Innovation." Sustainability 15, no. 3 (January 18, 2023): 1879. http://dx.doi.org/10.3390/su15031879.
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The financing difficulty of green innovation projects has always been an obstacle to enterprises’ green innovation. Digital financial inclusion provides a new opportunity to solve the financing difficulty of green innovation. Based on the construction of a theoretical framework for digital financial inclusion to influence green innovation, this study empirically analyzes the impact and mechanism of digital financial inclusion on green innovation by using the provincial panel data of China from 2011 to 2020. The results show that digital financial inclusion has a significant positive impact on green innovation. The promotion effect of the development of digital financial inclusion on green innovation is mainly driven by the depth of digital financial inclusion use and the digitalization of financial inclusion. The results of the intermediary effect analysis show that digital financial inclusion can promote green innovation by alleviating capital misallocation and improving financial efficiency.
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Wójcik-Czerniawska, Agnieszka. "Innovation changes and the traditional financial sector." Humanities & Social Sciences Reviews 10, no. 1 (February 22, 2022): 24–33. http://dx.doi.org/10.18510/hssr.2022.1014.
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Purpose of the study: The main objectives of this work are to analyze the innovation process in general and financial Innovation in particular, during which potential effects will appear on the financial structures of economic units and considering the recent financial events of the crisis of the subprime discuss whether financial Innovation is a source of growth or, on the contrary, is a source of financial instability.
Methodology: The financial crisis has cast a shadow over recent financial innovations, particularly those that call for risk elimination. This research used secondary methods for innovation changes and traditional financial sectors. The secondary research method will collect data through google, websites, books, and other sources.
Main findings: The main goal of financial technologies offered by entities in this sector is to improve the efficiency and availability of financial services, both from the customer and the perspective and a financial institution. The digital economy is considered a vertical—data-focused, and connected economy to the device, with a centralized architecture and heavy technology.
Application of the study: In debates about the regulation of financial markets, the functions and social use-value of financial Innovation come under scrutiny. In developing countries, the crucial question arises of to what extent financial innovation is essential to creating the financial infrastructure necessary for industrialization, instead of simply making wealth more liquid where blockchain technology and cryptocurrencies and crypto money become more active.
Originality/Novelty of the study: In this way, new products have been created, new forms of derivatives, products that transfer risk, and so on. It should be borne in mind, in any case, that the Schumpeterian vision of the innovation process in the present case that of financial Innovation is part of a regular course in terms of an economy that seeks growth. However, the financial crisis has cast a shadow over recent financial innovations, particularly those that call for risk elimination.
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Popelo, Olha, Maksym Dubyna, and Nataliia Kholiavko. "WORLD EXPERIENCE IN THE INTRODUCTION OF MODERN INNOVATION AND INFORMATION TECHNOLOGIES IN THE FUNCTIONING OF FINANCIAL INSTITUTIONS." Baltic Journal of Economic Studies 7, no. 2 (March 26, 2021): 188–99. http://dx.doi.org/10.30525/2256-0742/2021-7-2-188-199.
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The article reveals the essence of the concept of “financial innovations” and their features. The classification of financial innovations is given. The innovative models of the Ukrainian banking business development are analysed. The innovative developments of the world’s leading banks are systematized according to the version of the annual competition for the BAI-Finance Global Banking Innovation Awards held in Las Vegas. The innovative and information technologies in the work of financial institutions in the following areas are analysed: Product and Service Financial Innovation, Channel Financial Innovation, Financial Innovation in Social and Community Impact, Financial Innovation in Internal Process Improvement. Foreign experience and features of the development of the newest innovative information technologies in the financial services market are analysed. The subject of research is theoretical and applied aspects of the development of innovations and information technologies in the functioning of world-class financial institutions. The purpose of the article is to analyse and systematize foreign experience in the development of new innovative and information technologies in the financial services market. In the research, the authors used general scientific and specific methods, including: historical-logical, dialectical, deductive, analysis and synthesis, grouping, abstraction and formalization, benchmarking, generalizations and systematization. The article concludes that in modern rapidly evolving digitalization processes, financial innovations play an extremely important role and contribute to the economic development of countries. The authors point out that banking institutions need to focus their potential as much as possible on identifying priority digital and innovative initiatives, taking into account current challenges and threats. Finally, the effective use of specific financial innovations requires in-depth knowledge of the features of their operation and careful analysis of their consequences. The authors recommend the use of a cross-functional approach, which provides flexibility and the ability to transform change over time and is an important element in the process of implementing financial innovations. Taking into account the experience of leading banking institutions that actively implement innovative developments, the authors note that along with the benefits, financial innovations can cause new challenges and threats for all participants in this process. Researchers have shown that radical innovation can displace a dominant business model or technology and create a new market. According to the results of the analysis of innovative developments of banks around the world for the period 2015-2019, the authors found that financial innovations have changed their nature and are based on the latest digital technologies.
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Kuncoro, Andreas Mahendro, Melvin Rahma Sayuga Subroto, and Eric Ohara. "THE ROLE OF INNOVATION IN ENHANCING FINANCIAL PERFORMANCE IN YOGYAKARTA'S CREATIVE INDUSTRY." TRANSEKONOMIKA: AKUNTANSI, BISNIS DAN KEUANGAN 4, no. 5 (September 9, 2024): 909–22. http://dx.doi.org/10.55047/transekonomika.v4i5.738.
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This study explores the impact of various types of innovation—organizational, process, product, and business model innovations—on the financial performance of firms in Yogyakarta's creative industry. The research employs Partial Least Squares Structural Equation Modeling (PLS-SEM) to analyze data collected from 57 creative industry firms. The findings indicate that organizational innovation significantly enhances process and business model innovations, which in turn positively affect financial performance. However, the direct impact of organizational innovation on product innovation is not significant, suggesting the need for a more integrated approach to foster product development. The study highlights the essential of innovative practices and adaptive business models in driving financial success in the creative industry. These insights are crucial for managers and policymakers aiming to boost the financial performance of creative firms through strategic innovation.
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Savchuk, Nataliia, Tetiana Bludova, Dmytro Leonov, Olena Murashko, and Nataliia Shelud’ko. "Innovation imperatives of global financial innovation and development of their matrix models." Investment Management and Financial Innovations 18, no. 3 (September 13, 2021): 312–26. http://dx.doi.org/10.21511/imfi.18(3).2021.26.
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The global financial market is undergoing transformational changes under the growing influence of innovative factors. Such changes are due, in particular, to the concentration and scaling up and diversification of the structure of financial services, the renewal of the financial sector on the basis of FinTech operations and blockchain technologies. This requires taking into account the impact of innovation factors on the transformation of the financial market in the dimension of FinTech. The study aims to identify the imperatives of global financial innovation and show ways to develop innovative models in the interpretation of S-curves for next-generation products using new technologies when key technologies on the previous S-curve become obsolete. Also, the matrix of financial innovations is presented and the synergy of its innovation models is proved.The results of the study are to prove that each of the presented models is not independent, it evolves and develops itself, as well as affects other models. This made it possible to identify prognostic pathways for the development of innovative models in their synergy in the form of two-ring motion. Thus, the study emphasizes the need for further research aimed at developing innovative models that will determine strategic decisions in the formation of innovation imperatives.
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Blahun, Semen. "FINANCIAL INNOVATIONS AS AN ELEMENT OF THE FINANCIAL SYSTEM." HERALD OF KHMELNYTSKYI NATIONAL UNIVERSITY 300, no. 6 Part 2 (December 2021): 152–57. http://dx.doi.org/10.31891/2307-5740-2021-300-6/2-25.
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The financial sector, which is an important part of the country’s economy, needs changes that will allow it to properly perform its tasks for a long time to come. Innovation and competitiveness should characterize both the financial sector as a whole and individual enterprises and institutions within it. Therefore, the question of the general impact of innovation on growth processes in a competitive economy, the division of innovation into products and processes of the linear sector, the dependence of this component on technical and organizational steps taking place throughout the economy. Thus, a number of applied studies have given rise to a new economic theory, which due to the spread will have a significant impact on the functioning of the monetary system and macroeconomic policy. In addition, financial innovation is an important element that causes a modification of the form of financial systems, and hence the conditions and potential for the functioning of financial and real actors. They affect, in particular, the general opportunities for economic development of the country, the cost of financing the activities of entities, types and amounts of economic risk that arise in socio-economic systems. The consequences can be both positive and negative, which obviously leads to discussions about the reaction of market regulators to the fact of the above and its application. The article analyzes the impact of innovations on growth processes in the economy. The author structured innovations of products and processes, investigated the consequences of such a classification for the linear sector of the economy. The impact of international agreements (Basel 1, Basel 2, Basel 3) on the security of the banking system was shown in the article. The banking of the payment system, as well as the impact of ATMs and Internet transactions on banking activities were considered in the article. Financial innovations reflect every change in existing financial products, changes in a number of financial intermediaries, their types and business models, transformations in financial markets and in the relationship between entities. The basic component of such modifications is regulatory and supervisory systems, which ensure their functioning. Despite computerization, the essence of modern banking has not been changed for many years. However, it is hard to deny that information technology has evolved significantly in recent decades. Information technology and automation have changed the methods of organization of production, design, research, medical research, administration in almost every sphere of life. In addition, information and telecommunication technologies (ITT) have created a new section of technologies for the modern use of GPT, which, of course, affect the situation in the financial sector.
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Liu, Mingxia, Liqian Liu, and Amei Feng. "The Impact of Green Innovation on Corporate Performance: An Analysis Based on Substantive and Strategic Green Innovations." Sustainability 16, no. 6 (March 21, 2024): 2588. http://dx.doi.org/10.3390/su16062588.
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Green innovation is a new approach to achieving sustainable social development. Examining whether firms can reap the rewards of this costly and risky endeavor is essential to assessing whether they can sustainably adhere to a green strategy. This study was conducted on a sample of Chinese A-share-listed firms from 2010 to 2021 and employed a two-way fixed-effects approach. We found that substantive and strategic green innovations significantly impact firms’ financial and environmental performance. Specifically, substantive green innovation leads to a significant improvement in financial performance, while strategic green innovation weakens financial performance; both types of green innovations lead to a significant improvement in environmental performance, with strategic green innovation being more effective in this regard compared to substantive green innovation. Moreover, our heterogeneity analyses showed that substantive green innovation has a weaker effect on improving financial performance in state-owned enterprises (SOEs) and in firms in regions with higher government environmental concerns; similarly, in SOEs, strategic green innovation has a weaker detrimental effect on financial performance. The findings of this study provide substantial evidence for promoting green innovation transformation and the upgrading of enterprises.
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Zeng, Fanyi. "The Impact of Financial Innovation on China's Provincial Economic Resilience." BCP Business & Management 30 (October 24, 2022): 9–18. http://dx.doi.org/10.54691/bcpbm.v30i.2253.
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Financial innovation's impact on the socio-economic resilience cannot be disregarded in the context of the ongoing pursuit of innovation. This study employs a variety of econometric models, including the moderating effect and the mediating effect, to experimentally assess the relationship between financial innovation and economic resilience. The study's findings show that: financial innovation can significantly boost a province's economic resilience; the proportion of state-owned enterprises mitigates the benefits of financial innovation for economic resilience; and improving industrial structure and market activity are two ways that financial innovation boosts economic resilience. Thus, the research in this paper promotes the understanding of the development effect of financial innovation and provides a reference for the path of economic resilience enhancement.
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Mostafavi, Ali, Dulcy Abraham, and Joseph Sinfield. "Innovation in Infrastructure Project Finance: A Typology for Conceptualization." International Journal of Innovation Science 6, no. 3 (September 1, 2014): 127–44. http://dx.doi.org/10.1260/1757-2223.6.3.127.
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Due to the growing demand for civil infrastructure, financial innovations are required to close the financing gap. However, a lack of theories has inhibited a complete understanding and, thus, creation and diffusion of financial innovation. A lack of theory about financial innovations in infrastructure is mainly due to the absence of a framework to conceptualize these innovations. A typology that enables comparison of financial systems and, hence, provide a framework to conceptualize financial innovations is missing in the existing literature. This paper defines innovation in the context of financing, funding and delivery of infrastructure projects and proposes a new typology for conceptualization of the loci and types of financial innovations in infrastructure. The loci of innovations are in risk mitigation, regulation, cash flow, contract, organizational, and capital sub-systems. Types of innovations are classified as either integrated or modular and either sustaining or disruptive. The typology was tested by mapping seven innovations created by the U. S. Federal Highway Administration and diffused into 232 transportation projects between 1994 and 2002. Qualitative comparative analysis was then used to evaluate the diffusion trends of financial innovations in the case studies and to demonstrate the capability of the proposed typology for facilitating theory building in the area of infrastructure financial innovations.
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Jelinčić, Daniela Angelina, and Sanja Tišma. "Tourism Innovation in the Adriatic-Ionian Region: Questioning the Understanding of Innovation." European Journal of Geography 13, no. 5 (December 29, 2022): 97–114. http://dx.doi.org/10.48088/ejg.d.jel.13.5.097.114.
Full textAbstract:
Today, tourism as the most important global service industry faces many challenges, which call for innovations. That includes product (new products and services), process (new ways of delivering tourist services), logistical (new ways of providing products/services to tourists), and market innovations (new marketing methods or market behaviour). To detect the number and types of tourism innovations funded by the EU in the Adriatic-Ionian region (AIR), a desk research approach and a survey was carried out between 2020 and 2022. The purpose of our work was to detect projects fostering innovations in sustainable tourism, analyse their innovation capacity and propose possible policy enhancements. The main research questions were: Firstly, are financial incentives appropriate measures to foster innovations? and secondly what is the role of governance models of the EUSAIR in fostering innovations in sustainable tourism? In total, 88 projects were detected fostering different types of innovations. The results demonstrate an uneven geographical distribution of financial incentives for innovative projects and underline the lack of a clear understanding of the concept of innovation in funded projects and in seconded national administration in the AIR. Additionally, our findings show that financial incentives, although welcome, do not always foster innovations. Rather, an effective governance should be in place to tailor the appropriate financial incentives and guide the process. Our work contributes to the development of new guidelines related to growth and innovation in sustainable tourism in the AIR.