Development Of Financial Innovation Research Articles

Financial innovations for economic growth

The article examines the impact of financial innovations to ensure economic growth. The authors attempt to reveal the essence of financial innovations. The directions in which the work on innovation for development is currently focused are considered. For the development of the Russian economy under sanctions, it is proposed to create a convenient and independent international settlement tool that will help reduce the damage from restrictions. One of the ways to solve this problem is the development and implementation of projects related to digital financial assets, such as the use of gold-backed stablecoins for international settlements. Other innovations in the financial sector are also being considered. The further introduction and development of financial innovations in Russia contributes to the renewal of the financial system, increasing the level of financial security and creating favorable conditions for economic growth. These steps can help mitigate the negative effects of sanctions and contribute to the sustainable development of the country's economy in the face of external pressure.

Transforming Financial Systems: The Role of Time Banking in Promoting Community Collaboration and Equitable Wealth Distribution

The existing global multi-crises have generated significant transformations in the architecture of financial systems, impacting local communities. Furthermore, the digital era has created a conducive environment for the development of financial innovations that can generate financial instruments supporting financial inclusion. Our research aims to identify and develop innovative financial instruments that foster closer collaboration within communities and promote a more equitable distribution of wealth and resources, directly impacting financial inclusion and well-being. The methodology used in our study is based on existing empirical research in the specialized scientific literature, as well as on identifying variables within existing models. Additionally, the use of bibliometric analyses and research tools based on artificial intelligence allows us to structure the innovative financial instruments found in the scientific databases. Building on the existence of innovative financial instruments, our paper specifically explores the concept of time banking as an innovative financial instrument, offering a new approach to economic exchange and the construction of financial mechanisms at the local community level. By using technology, especially in digital and ecological eras, time banks can be efficiently managed through online platforms where individuals can register their contributed hours and access the services they need. This study’s conclusions emphasize that time banks have the potential to serve as innovative financial instruments. Furthermore, through the analysis conducted in this study and the identified models, this study contributes to redefining the concept of time banking as an innovative financial instrument. Time banks focus on the productivity and efficiency of local community activities, with direct implications for reducing dependence on traditional currency and promoting an equitable distribution of labor. This innovative approach is promising, especially in an increasingly digitized financial landscape. Our paper seeks to capture this transformative potential and highlight our personal contributions to redefining the time bank as an innovative financial instrument.

The role of financial innovation in carbon intensity reduction: perspectives from energy structure transition and fiscal policies.

Carbon emissions are important factors causing global warming, which requires global efforts to deal with. In this paper, we investigate the mechanism of financial innovation on reducing carbon emissions in China by constructing a financial innovation development index with factors of green finance as well as fintech development. Empirical results show that financial innovation contributes to reduce carbon intensity by promoting energy structure transition as well as public fiscal expenditure on energy conservation and environmental protection. Moreover, heterogeneity exists in the effect of financial innovation on carbon emission reduction. Financial innovation has a significant role in reducing carbon intensity in eastern regions, but has a relatively small influence on central and western regions. Furthermore, financial innovation has a lag effect on reducing carbon intensity.

Financial Innovations in Czechia: Considerations for Establishment of Regulatory Sandbox

The regulatory sandbox has been established in many EU Member States as well as developer non-EU countries as a tool for fostering financial innovation. On the contrary, the Czech Republic has not yet prepared a sandbox. The article introduces the topic, discusses the sandbox in the European and international context, and briefly explains the history and current status of financial innovations in the Czech Republic. The authors also discuss the OECD report on recommendations for the design of the FinTech Sandbox. Recommendations of which they find to be unsuitable for implementation due to the fundamental flaws of the report and the omission of an analysis of the Czech legal system. Finally, the authors of this article elaborate on the various options and parameters for the Czech sandbox. The authors recommend implementing a legal definition of a sandbox in the Czech legal system. Also, the authors call for the establishment of a sandbox that could support the development of financial innovation as Czech consumers show a particularly supportive stance towards new technologies.

Regulatory Sandbox dan Implementasi pada Inovasi berbasis Financial Technology (Fintech)

Abstract. The development of financial innovation called "Financial Technology" has developed rapidly so far. Disruption to digital finance certainly needs to be regulated in such a way as to minimize risk and stabilize the state financial system. In an effort to regulate this innovation, regulators place limits on digital forms of finance that are widely used by the public. Today's society tends to have an instant, easy lifestyle, and use online transactions. In this era, digital finance is at the top of society, one of the most forms of fintech is application-based lending that brings together lenders and recipients/borrowers in one application. With digital financial innovation getting fast attention from competitors in the business world outside of banks, they tend to take advantage of the community and namely the rise of online loans. One of the efforts to mitigate risk by financial institutions is to issue a Regulatory Sandbox policy through Bank Indonesia Regulation Number PBI No.19/12/PBI/2017 of 2017 concerning the Implementation of Financial Technology and Financial Services Authority Regulation (POJK) Number 13/POJK.02/ 2018 of 2018 concerning Digital Financial Innovation in the Financial Services Sector (POJK 13/2018). This study intends to analyze the extent to which these regulatory issues have represented the needs of agencies and society. This legal research uses empirical legal research methods, which this research relies on applicable laws and regulations as well as other related literature. The results of this research are the ineffectiveness of current regulations among the public and regulators as well as the increasingly complex problems faced by financial institutions, especially in the field of banking.

The coordination of technological and financial innovation concepts on the marine economy and its ecological development

This study first constructs an evaluation index system based on the pressure state response model, and assigns weights through entropy method and coefficient of variation method, providing theoretical and methodological support for comprehensive measurement and evaluation. Second, the least squares decision model is introduced and the PVAR model is used to analyze the development level of China's marine economy, ecology, and technological and financial innovation. The results indicated that from 2012 to 2022, the marine economic development level, marine ecological development level, and marine technology and financial innovation development level of 9 coastal provinces in China all showed a certain growth trend. However, in terms of the level of marine ecological development, various provinces had shown a downward trend, with Hebei performing the best, with an average of 0.230. Although various regions have achieved significant development in marine economy, ecology, and technological and financial innovation, the level of development varies among regions, and some regions have relatively low levels of technological innovation. The pressure and challenges between the marine economy and ecological environment protection caused by these real environments remain significant.

Research on the Influencing Factors and Countermeasures of Cultivating Financial Innovation Talents under the Background of Big Data

Abstract The lack of high-quality financial innovation talents has become an obvious shortcoming in the development of financial innovation, and the call for the cultivation of talents to adapt to the increasingly changing new economic environment has become increasingly urgent. This study extracted the key factors affecting the cultivation of financial innovation talents by preprocessing the relevant data and eliminating the unreasonable information, and used factor analysis to remove the key factors influencing the cultivation of financial innovation talents, and used Pearson’s correlation coefficient method and correlation rule analysis algorithm to analyze the interrelationships between these factors in depth. The analysis results show that the correlation coefficients between the level of economic development and educational background and technological innovation reach 0.69 and 0.58, respectively, while the correlation coefficient between the level of human capital and the level of technological innovation is 0.46. Analyzing the level of financial innovation talent cultivation, we find that financial innovation development grows from about 22.5% to about 37.5% from 2016 to 2023. At the same time the amount of financial innovation talent grows from 490,000 to 880,000 people. However, the growth of financial innovation talent is gradually slowing down, pointing to the urgent need to develop talent. The strategies and suggestions put forward in this study provide essential references for cultivating financial innovation talents in the future, aiming to promote the sustainable development of financial innovation and the optimization of talent structure.

Green financial technologies: behavioral aspects of development

Methods. The theoretical and methodological basis of the scientific research was the results of domestic and foreign research on the creation and development of eco-projects in the context of the creation and development of financial innovations and technologies. In order to achieve the set goals, scientific provisions and conclusions in the work are based on the basic concepts of behavioral theory and institutional theory of financial market development. The main research methods were empirical methods, which allowed to investigate the development trajectories of individual Green FinTech projects, induction and deduction methods, which allowed to analyze the behavioral aspects of typical users of Green FinTech projects, products and services of the financial market. Results. The study demonstrated that there are practically no comprehensive studies on the behavioral aspects of the creation and development of Green FinTech projects and products. It was the behavioral approach that made it possible to understand, analyze and predict direct and indirect incentives for the development of such eco-projects, to find the appropriate institutional levers that will ensure the intensive spread of Green FinTech. Based on the analysis of the development trajectories of successful Green FinTech eco-projects, such behavioral aspects of financial market participants as propensity to innovation, propensity to risk, environmental awareness, appropriate financial literacy, ability and readiness to use innovative financial tools and platforms, integration into the digital space were investigated . The key obstacles to the development of Green FinTech were studied: the lack of standardized indicators for measuring the impact on the environment and the sustainability of financial products; regulatory complexities, the missing regulatory framework, technological barriers, the problem of cyber security and confidentiality of customer data, the biased attitude of some consumers towards environmental initiatives. Proposals are made to overcome them and improve the institutional structure of the financial market. Novelty. The work improved the scientific and methodological approach to the analysis of consumer behavior of Green FinTech projects on the financial market, in particular it was scientifically proven that the use of financial services in the field of Green FinTech requires a certain mental, educational and behavioral readiness from the economic subject, which, in turn, requires institutional compliance with the structure of the financial market. Practical value. The practical significance is that the established behavioral aspects, as well as the key obstacles that restrain the development of the Green FinTech field, allow for the formation of a sound strategy for the development of Green FinTech at the micro and macro level.

Financial Innovation and Restriction Hypothesis in the Banking Industry: Evidence from ASEAN- 5

This study investigates the financial innovation impact on bank market power in ASEAN banking from 2008 to 2018. It uses income diversification as a representative of financial innovation. The impact of countries’ development of financial innovation on market power is measured by the number of ATM, internet, and cellular phone users. The data panel regression model reveals that diversified banks may enjoy higher market power. This result rejects the banking restriction activity hypothesis, which states that a bank that diversifies its income stream results in increased competition. A higher number of available ATMs and more internet users lowers the percentage disparity of price and marginal cost and consequently increases the market competitiveness. Nevertheless, an increasing number of cellular users in the country increases market power. Conjecturally, more people use the online bank platform on their cellular phones, which creates a greater flow of fees to the bank.

Institutional Determinants for Developing Corporate Crowdfunding

This article focuses on the regulation of investment crowdfunding as a key criterion for the dynamic but safe development of this form of business financing. The intensive, uncontrolled development of innovation in financial markets generally leads to irregularities (fraud, abuse, crises). In turn, excessive and restrictive regulation can act as a brake on the development of financial innovation. Due to the subject matter of the study, which is the regulation of equity crowdfunding as well as equity crowdfunding itself, the methodology of the study consists primarily of research of source data available online. A literature review of the regulation of innovation in financial services was conducted. This includes the identification and review of academic articles, research reports, books, industry publications and other authoritative sources. This synthesis of information helps to define an appropriate benchmark for the regulation of European crowdfunding, identifying patterns and challenges for effective, pro-development regulation. Author presents the equity crowdfunding regulations of the US and the UK – the world’s number 1 and 2 crowdfunding markets – as a benchmark for the proposed pan-European regulations. The features of the common European rules seem to meet the requirements. And the increase of the funding amount to EUR 5 million opens up completely new possibilities for equity crowdfunding.

ІНСТИТУЦІЙНІ ДЕТЕРМІНАНТИ КОНКУРЕНТНОЇ ПОЛІТИКИ НА РИНКУ ФІНАНСОВИХ ПОСЛУГ

Проблематика інституційних детермінант конкурентної політики на ринку фінансових послуг являє собою актуальний і перспективний дослідницький напрям, важливий як у теоретичному контексті, так і в практичному вимірі. Обґрунтування напрямів реалізації конкурентної політики на ринку фінансових послуг є особливо актуальним у країнах з ринками, що формуються, до яких належить і Україна. Зроблено висновок, що протягом останніх років застосування регуляторних механізмів на ринку фінансових послуг стало основою цифрової трансформації підприємницької моделі його суб’єктів. Активізацію розвитку таких технологій обумовлено діями регуляторів, спрямованими на підвищення дієвості інструментів нагляду після фінансових криз і зростання витрат на дотримання нових нормативних вимог. Засадничими детермінантами досягнення належного рівня конкурентних відносин між суб’єктами ринку фінансових послуг є розроблення і реалізація адекватної та збалансованої конкурентної політики держави. В Україні створено законодавчу базу й сформовано організаційні засади для реалізації ефективної державної конкурентної політики, проте поглиблення ринкових перетворень постійно породжує нові проблеми у сфері конкурентної політики, які потребують удосконалених підходів до їх вирішення. Дослідження інституційних детермінант конкурентної політики на ринку фінансових послуг дозволило визначити основні, серед яких зростання залежності від екзогенних чинників, недосконалість стандартів поширення інформації та її асиметрія, порушення прав споживачів, деформація норм і практик провадження підприємницької діяльності, низький рівень довіри до суб’єктів ринку, динамічний розвиток фінансових інновацій. Інституційне середовище детермінує особливості функціонування ринку фінансових послуг, при цьому розвиток національної економіки неможливий за умов його розбалансованості. Завдання вирішення ідентифікованих проблем покладається в першу чергу на державні інститути, водночас і споживачі фінансових послуг мають брати активну участь у здійсненні постійного моніторингу діяльності суб’єктів ринку.

The economic essence of financial innovation and innovative transformation of financial services

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.

Investment platforms and their role in the development of financial innovations

Aim. The presented study aims to analytically assess the operating conditions of investment platforms and to substantiate the importance of their development as a driver for promoting financial innovations.Tasks. The authors determine the place of investment platforms in the system of factors affecting the development of financial innovations; investigate and compare the key operating conditions of investment platforms; identify the most suitable investment platforms depending on the purpose of fundraising; comparatively analyze the performance of investment platforms according to annual reports and identify leaders according to the indicators under consideration.Methods. This study uses the dialectical systems approach, systematization, comparison, logical analysis, and general scientific methods.Results. The study compares the key operating conditions of investment platforms and identifies the most suitable investment platforms depending on the purpose of fundraising. Based on data from the annual performance reports of investment platform operators, a comparative analysis is performed and leaders in terms of such indicators as the amount of loans and investment are identified. In addition, the authors determine the place of investment platform development in the system of factors affecting the development of financial innovations.Conclusions. Based on the performed analysis and trends in the development of the financial technology market, the authors conclude that the use of investment platforms offers undoubted advantages, namely: for investors – a low entry threshold, for the business – an opportunity to quickly get low-cost financing for a business project without collateral. Being an innovative way of attracting financial investment, investment platforms act as a key driver in the development of financial innovations.

INNOVATIONS IN FORMING FINANCIAL ECOSYSTEMS

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

Impact of Covid-19 Pandemic on Financial Innovation, Cashless Society, and Cyber Risk

Abstract The global pandemic, as an unprecedented event in the recent past, has significantly changed the modern world. Numerous companies and individuals have faced various challenges that are still present. The aim of this paper is to review the impact of pandemic on financial innovation, fintech companies, cryptocurrencies, the development of a cashless society, and cyber risk. It tests two already confirmed hypotheses: H1: COVID-19 pandemic has affected the development of financial innovations and cashless society; and H2: COVID-19 pandemic has led to increased cyber risk. The method applied is desk research, i.e. a review of the existing studies and their unification. The paper shows that fintech companies proved to have been resilient during the crisis since they have managed to change their business model and offer new products and services (financial innovations). It also indicates that it is obvious that the number of cashless transactions have increased due to the pandemic, but that it is still not reasonable to expect a completely cashless society in the near future. The paper highlights that cyber risks are on the rise owing to the growth of cashless transactions and digitalisation of businesses driven by the global pandemic.

Digital finance and corporate green innovation: quantity or quality?

Recently, the rapid development of digital finance in China has exerted a subtle influence on many aspects of social and economic development. However, the research on the impact of digital finance on corporate green innovation is rather lacking. In order to fill this gap, this paper uses the "Peking University Digital Finance Index" to evaluate the micro impact of financial innovation development on environmental governance from the firm level. The results show that digital finance can significantly improve the quantity and quality of corporate green innovation, and this effect still exists after considering endogeneity and a series of robustness tests. The promotion effect of digital finance on the quantity and quality of corporate green innovation is more obvious in state-owned, eastern, and mature enterprises. In addition, we find the mechanism behind the positive relationship between digital finance and corporate green innovation: digital finance makes firms more transparent and funds flow more convenient. Overall, this paper provides a micro explanation of environmental governance for the accelerated popularization of digital finance in emerging markets, which is urgently needed for most emerging economies seeking high-quality development.

Research on financial innovations: an interdisciplinary review

PurposeThe financial industry offers a unique setting to study innovations. Financial innovations have fueled the growth of economies, markets and societies. The financial industry has successfully become the breeding ground for innovative services, processes, business models and technologies. This study seeks to provide a holistic view of the literature on financial innovations, synthesize the research findings and offer future directions for research in light of three market developments that are disrupting the industry and opening up a new era for the financial services industry. Disruptions from within and outside the industry offer new generations of radically innovative services. Moreover, new generations of consumers differ from previous generations in their needs and wants and look for innovative ways to handle their financial needs. Finally, significant developments related to financial innovations have emerged in Asia and developing countries.Design/methodology/approachThis study systematically reviews the academic research literature on financial innovations in two phases. The first phase provides a quantitative review of 546 journal articles published between 1990 and 2018. In the second phase, the study synthesizes the extant research on financial innovations and maps them in five research areas: firms' introduction and adoption of FIs, financial innovation development, the outcomes of financial innovations, regulations and intellectual property, and consumers.FindingsThe analysis found that disciplines differ with regard to the employed research methodologies, the units of analysis, sources of data and the innovations they examined. A positive trend in the number of published articles during this period is observed. However, studies have primarily focused on the USA and Europe and less so on other parts of the world. The literature synthesis further identifies research gaps in the available research that highlight future research opportunities in light of the three market disruptions. The financial services industry is on the brink of a new era due to disruptions from within and outside the industry and the entrance of new generations of consumers. Moreover, the financial industry has successfully become the breeding ground for innovative services, processes and business models. Therefore, financial innovations offer promising opportunities for bridging the gap between research on product and service innovations.Research limitations/implicationsThe work provides a holistic and systematic overview of extant research on financial innovations and highlights future research opportunities in light of the three disruptive market developments. It helps researchers take advantage of the opportunities in studying financial innovations while maintaining industry relevance.Originality/valueThe study is the first to review and synthesize the academic research literature on financial innovations across marketing, finance and innovation disciplines. In addition, the study highlights three primary disruptive forces in the financial industry and identifies future research directions in light of these disruptive forces.

FINTECH MARKET DEVELOPMENT IN THE WORLD AND IN UKRAINE

Abstract. The trends of fintech development in the world and in Ukraine have been explored in the article. The COVID-19 pandemic has spurred accelerated financial innovation development and increase of investment in this area. Fintech’s payment sector has the highest investment activity and investors’ interest in such sectors as cybersecurity, regtech, cryptocurrency and blockchain is growing. Investors prefer US, UK, and German markets, as well as already developed, sustainable businesses. These investors’ interests and the concentration of investments are projected to continue in the coming years. Ukraine is characterized by a low level of development of financial technologies, but there has been an increase in investment activity in fintech, particularly in 2020 investments were increased in the early stages of business development. The development of fintech in Ukraine is expected to accelerate due to the recent positive changes that have taken place in this direction: a new law on financial monitoring has been enacted, allowing remote identification and verification of clients; the Law of Ukraine «On Virtual Assets» has been enacted, which will allow to regulate the process of circulation of cryptocurrency and development of the cryptosphere; the NBU has became the regulator of financial institutions and creating equal conditions for banking and non-banking institutions to operate on the market; the Fintech Development Strategy 2025 has been developed to stimulate innovation, improve the availability and quality of financial services, and create a strong fintech ecosystem; the Ukrainian Startup Fund has been established to promote the creation and development of technological startups. The following directions for further development of fintech in Ukraine have been defined: improving financial and digital literacy; increasing the availability and safety of non-cash transactions; developing the infrastructure of the fintech ecosystem; integration of the national fintech ecosystem into the global fintech ecosystem; accretion of the fintech market investment potential; financial services sector digitalization. It is necessary to introduce modern transparent methods of regulating the fintech market in order to stimulate financial innovation projects and consumer protection, to stimulate interaction of fintech companies and banks, other financial institutions towards the development and diffusion of financial innovations. Keywords: fintech, investments, innovations, fintech market, fintech companies. JEL Classification G20, G24 Formulas: 0; fig.: 4; tabl.: 0; bibl.: 13.

Retail Payments Strategy for the EU versus the challenges of the payment sector

Motivation: The payment services sector has become one of the main areas for the development of financial innovation and the key element of the digital economy. However, the payment services market in the European Union (called the European Payments Market) is still fragmented along national borders, insufficiently integrated, and facing several challenges. Therefore, the newly announced Retail Payments Strategy for the EU is a document of great importance for the future of the entire EU economy, and deserves in-depth study.
 Aim: The purpose of this paper is to assess whether the trends and challenges identified by the European Commission in the Retail Payments Strategy, and the general directions and proposed actions presented in this document, appropriately reflect the challenges faced by the European payment market.
 Results: A comparative analysis of the Strategy’s assumptions and proposed actions was conducted, in relation to the identified challenges of the payment sector. The empirical data were derived from a survey of 202 experts from all EU member states, and the UK, Norway and Switzerland, covering all types of bank and non-bank payment market players. The analysis confirmed that the Strategy identified the main challenges and opportunities, in line with the results of the expert survey: the need for further development of open banking; cross-border integration and development of instant payments systems; and ensuring access to the banking payment infrastructure, including contactless and NFC mobile payments. However, the proposed directions of action in selected areas have not been sufficiently rationalised, and most of the actions have been left to be specified in the future. In addition, the Strategy relies mostly on the use of regulatory tools that may limit innovativeness. Although the Commission and the surveyed experts agreed in recognising the challenges related to the increasing role of BigTechs in the payment sector, no comprehensive solution addressing the related challenges was proposed in the Strategy.

Research on Financial Innovations: An Interdisciplinary Review

The financial industry offers a unique setting to study innovations. Financial innovations (FIs) have fueled the growth of economies, markets, and societies. The financial industry has successfully become the breeding ground for innovative services, processes, business models, and technologies. Three market developments are disrupting the industry and opening up a new era for the financial services industry. Disruptions from within and outside the industry offer new generations of radically-innovative services. Moreover, new generations of consumers differ from previous generations in their needs and wants and look for innovative ways to handle their financial needs. Finally, significant developments related to financial innovations have emerged in Asia and developing countries. In light of these market disruptions, this study systematically reviews the academic research literature on FIs in two phases. The first phase provides a quantitative review of 546 journal articles published between 1990 and 2018. This analysis found that disciplines differ with regard to the employed research methodologies, the units of analysis, sources of data, and the innovations they examined. The analysis found a positive trend in the number of published articles during this period. However, studies have primarily focused on the US and Europe and less so on other parts of the world. In the second phase, the study synthesizes the extant research on FIs and maps them in five research areas: firms' introduction and adoption of FIs, financial innovation development, the outcomes of financial innovations, regulations and intellectual property, and consumers. This synthesis further identifies research gaps in the available research that highlight future research opportunities in light of the three market disruptions.