Role Of Financial Innovation Research Articles

Role of Financial Innovation in Enhancing the Meezan Bank’s Market Share: Evaluating the Perception of Regional versus Branch Level Employees

In Pakistan very few researchers have focused on targeting the element of financial innovation within the sector of Islamic banking, despite of its ongoing growth. This study therefore aims to provide the perception based analysis about the effect of Financial innovative/Fintech tools on the market share of Meezan Bank in Pakistan. The present study report the results from the questionnaire survey distributed to the 52 branch as well as regional employees of Meezan Bank in Pakistan. The analysis of survey findingsthrough multivariate regression suggest that financial innovation is positively related to the market share of Meezan bank. On the basis of Step wise regression it is suggested that among the six elements of Fintech services (Mobile banking, internet banking, telephone banking, Automated teller machines (ATMs), Point of Sale terminals (POS), and Artificial Intelligence (AI) only ATM and POS are the most significant variables. Moreover, regional employees are significantly optimistic about the influence of Fintech on the market share of the selected bank.

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.

Recent Developments in Financial Innovation Research and Sustainable Accounting Models Bibliometric Analysis approach

This study conducts a systematic bibliometric analysis to examine recent developments in financial innovation research and sustainable accounting models. The intertwining of financial innovation and sustainability reflects a significant shift in the global economic paradigm, with innovations such as green bonds and impact investing reshaping financial markets. The research aims to identify key themes, trends, and interdisciplinary connections within the literature, offering insights for academia, practitioners, policymakers, and other stakeholders. Analysis reveals a growing emphasis on the role of financial innovation in driving sustainable growth and the importance of sustainable accounting in fostering transparency and accountability. The study also highlights emerging research directions, including interdisciplinary approaches, drivers of innovation and development, microfinance impact on household economics, and the nexus between education and health. Ultimately, this research seeks to contribute to the advancement of knowledge and practices promoting both financial prosperity and environmental and social well-being.

The state of financial inclusion research on developing countries

This study proposes a research agenda on financial inclusion (FI) in developing countries based on a synthesis of the literature using a combination of structured literature review and bibliometrics. The analysis is based on 183 peer-reviewed journal articles extracted from Scopus. We found that the literature can be organized into four broad themes: (1) conceptualization and impacts of FI, (2) user perceptions and adoption, (3) role of financial innovation and private sector financial institutions, and (4) role of public institutions and public policy in FI. Further, the literature is dominated by empirical studies with little theory-focused studies. The literature is fragmented, and the evidence is mixed and contested. The social implications of FI need to be studied within specific institutional contexts and care must be exercised when applying successful models from one context to the next. The research agenda is informed by a proposed conceptual model, labelled the financial inclusion diamond.

Role of Financial Innovation in Achieving Economic Sustainability: A Review Study

Financial innovation accelerates the economic sustainability of firms by enhancing financial markets’ productivity, accelerating capital development, improving financial services, and creating more effective financial intermediation. This article, therefore, highlights the possible economic performance associated with applying different methods of financial innovation. Employing a desk study methodology, this paper discusses the effectiveness of financial innovation techniques in enhancing firms’ economic sustainability performance theoretically. In doing so, this review paper provides policymakers and practitioners with several insights into the efficiency of such strategies for businesses’ sustainable economic growth. Abstract: Economic Sustainability, Exchanged-traded funds, Financial innovation, Hedge funds, private equity, weather derivative.

The role of financial innovations the (FinTech) in enhancing the quality of banking service: An analytical study of the Iraqi banking system

يتناول البحث الحالي متغيرين على قدر عالي من الأهمية وهما الابتكارات المالية و FinTech وجودة الخدمة المصرفية وهذين المتغيرين يمثلان من الركائز الأساسية التي تساعد المصارف على تحسين ادائها والحصول على المزيد من الزبائن وبالتالي زيادة الربحية.
 يهدف البحث الى تقديم عدداً من الأساليب والأدوات لمساعدة المصارف العراقية على تطوير خدماتها المصرفية وفق أحدث الابتكارات المالية والتكنولوجية لتحقيق رضا الزبائن، وقد تضمن مجتمع الدراسة الجهاز المصرفي العراقي، وشملت الحدود الزمانية للدراسة المدة الممتدة (2017-2021) وتم الاعتماد على البيانات التي وفرها البنك المركزي العراقي إذ جرى معاملتها كمياً واحصائياً لاختبار الفرضيات الخاصة بعلاقات الارتباط والتأثير بين متغيرات الدراسة.
 وتوصلت الدراسة الى مجموعة من الاستنتاجات أهمها وجود مستويات تصاعدية لجودة الخدمة المصرفية لدى اغلب المصارف العراقية عبر مواكبتها للتطورات التي تشهدها الساحة المصرفية وفق أحدث الابتكارات التكنولوجية، اما أهم التوصيات فكانت ضرورة اهتمام السلطات الاشرافية والرقابية على المصارف العراقية في تبني المزيد من الابتكارات المالية والتكنولوجيا الحديثة وتوفير الوسائل كافة التي تساعد على تطور الجهاز المصرفي عبر تقديم خدمات مصرفية وفق أحدث الوسائل التكنولوجية المتطورة.

Financial Innovation and Financial Risks

This study examines research on the role of financial innovation in banking and its implications for a bank's financial soundness. A literature review and mathematical simulation was carried out in Excel, to examine and identify the relationships between financial performance and efficiency and stability. The simulation is divided into 4 parts: 1) the bank is not innovating, 2) the bank is innovating to reduce costs, 3) the bank is innovating to stimulate demand, 4) the bank is innovating to reduce costs and stimulate demand. The use of simulation allows you to obtain comparable data for any period.Analysis and simulation results show that innovation leads to different consequences. Cost cutting innovations help the bank to increase its equity capital faster and reduce risks. On the other hand, innovations that stimulate demand lead to an increase in income and a decrease in the share of equity capital. The study allows researchers to better assess the impact of modern innovations in the banking sector. As far as the authors know, this research format is one of the most promising areas of research in economic activity in general, and banking in particular.

TOOLS OF INNOVATIVE DEVELOPMENT OF THE FINANCIAL MARKET OF UKRAINE

Topicality. The urgency of the prospects for the development of the financial market of Ukraine through the introduction of financial innovations today is growing due to the need to build a stable financial system in modern conditions, which is a crucial factor in socio-economic development of any state. This explains the special attention to the development of the financial market, which is a key conductor of financial resources in the real sector of the economy, ensures the movement of capital in the areas most responsible for the economic security of the country.Globalization of the financial space and competition in financial markets increase the importance of tools for the formation of competitive advantages of national financial markets, creating conditions for sustainable and efficient development of the national economy. As a result, the role of financial innovations is growing, because without them it becomes impossible to develop the financial market in today's competitive environment. That is why the study of this topic is extremely relevant and extremely necessary.Aim and tasks. The aim of the article is to develop theoretical, methodological provisions and practical proposals that should justify the need for financial innovation as a major component of further development of the financial market of Ukraine by identifying problems of the state financial market, the necessary prerequisites and ways to develop in modern market conditions.Research results. Ukraine's financial sector has long been a driving force for economic growth and financial development, as well as a source of financial and economic crises. In Ukraine, the development of the financial market is possible through the introduction of radically new financial management tools that would solve the main problems. However, it is necessary to meet some preconditions for their solution, namely to make institutional and infrastructural compliance in the processes and rules of mechanisms for development, implementation and control of financial innovations, to prepare the structure of economic sectors and households to use new financial services, tools and products and pay attention to the financial culture of the population. Fulfillment of these preconditions for the development of the financial market and the introduction of innovations is necessary, they form the foundation for global changes in the country's financial system and the disclosure of financial potential.Conclusion. For Ukraine, the formation and further development of the financial market is a prerequisite for the emergence of a powerful source of investment that will be directed to sectors of the economy through the accumulation of free cash. The functioning of the financial market is impossible without the work of the financial system and the course of innovative development of the financial sector, which ensures the normal existence and development of the state. To do this, it is necessary to develop a comprehensive approach to solving existing problems, which is why further research on the financial market of Ukraine and prospects for its development through the introduction of financial innovations should be devoted.

The role of financial innovations in consumer behaviour in the Russian retail payments market: A comment on Krivosheya

Krivosheya (2020) finds that consumers’ use of financial innovations has a positive effect on the frequency with which they use a payment card at the point of sale. This comment argues that Krivosheya's results are a case of ‘correlation does not imply causation’.

The welfare cost of inflation revisited: The role of financial innovation and household heterogeneity

The money-consumption ratio increases with age and decreases with consumption, and the recent era of low interest rates has seen a large increase in the aggregate money-consumption ratio. We estimate an overlapping generations model with money for transaction purposes for the age effects and the extent of financial innovation using aggregate and household-level money holdings. We then assess the welfare cost of a 3 percentage point increase in inflation, incorporating the cost from the redistribution of non-money nominal wealth. We find that the welfare costs are 13% of one-year consumption and are borne mostly by the poor and the old.

Role of Financial Innovation in Enhancing MSMES Access to Credit: An Empirical Investigation on Tanzania

This study assesses the extent to which financial innovations contribute to improving micro small and medium enterprises (MSMEs) access to credit in Tanzania. Information was collected through interviews using a structured questionnaire administered on a sample of 318 respondents. Probit estimates were used for robustness check of the factors that influence MSMEs borrowing behavior.The findings indicate that factors, which influence MSMEs to borrow money through innovative channels, comprise the need for meeting business start-up, operational and expansion costs. Other factors are in respect of ease of access; convenience; short loan process; and a relatively high degree of control of the loan process by the borrower. In contrast to progress made in improving access to financial services by MSMEs, loan access by individuals or businesses through innovative platforms is still low. Only 28.8 percent acknowledged having received loans through innovative platforms, and coefficient on innovation variable was found to be statistically insignificant. Explaining this anomaly include unfavorable terms of loans; high lending rates, inadequate knowledge; small-size loans; and short repayment period. Meanwhile, loan process time, loan size, loan access (distance) have a higher probability of increasing loan access by MSMEs.Therefore, there is a need to intensify measures towards enhancing MSMEs access to credit, taking advantage of available innovative platform channels. Increasing efforts towards reducing credit risk will help to lower the lending rates, while moral suasion measures by financial regulators together with borrowers’ traceable business-record can as well entice loan providers to offer loans of larger size and longer maturity. Meanwhile, capacity building is imperative in enabling MSMEs to acquire requisite business management skills and inculcate record-keeping culture. Equally crucial is enhancing measures towards maintaining the country’s macro-economic stability with a view to boosting demand for credit and improving MSMEs’ loan repayment capabilities.

The Effect of Marketing Knowledge Management on Bank Performance Through Fintech Innovations: A Survey Study of Jordanian Commercial Banks

Aim/Purpose: This study aimed to examine the effect of marketing knowledge management (MKM) on bank performance via the mediating role of the Fintech innovation in Jordanian commercial banks. Background: An extensive number of studies found a significant relationship between Marketing knowledge management and bank performance (e.g., Akroush & Al-Mohammad, 2010; Hou & Chien 2010; Rezaee & Jafari, 2015; Veismoradi et al., 2013). However, there remains a lack of clarity regarding the relationship between marketing knowledge management (MKM) and bank performance (BP). Furthermore, the linkage between MKM and BP is not straightforward but, instead, includes a more complicated relationship. Therefore, it is argued that managing marketing knowledge management assets and capabilities can enhance performance via the role of financial innovation as a mediating factor on commercial banks; to date, however, there is no empirical evidence. Methodology: Based on a literature review, knowledge-based theory, and financial innovation theory, an integrated conceptual framework has been developed to guide the study. A quantitative approach was used, and the data was collected from 336 managers and employees in all 13 Jordanian commercial banks using online and in hand instruments. Structural equation modeling (SEM) was used to analyze and verify the study variables. Contribution: This article contributes to theory by filling a gap in the literature regarding the role of marketing knowledge management assets and capabilities in commercial banks operating in a developing country like Jordan. It empirically examined and validated the role of Fintech innovation as mediators between marketing knowledge management and bank performance Findings: The main findings revealed that marketing knowledge management had a significant favorable influence on bank performance. Fintech innovation acted as partial mediators in this relationship. Recommendations for Practitioners: Commercial banks should be fully aware of the importance of knowledge management practices to enhance their financial innovation and bank performance. They should also consider promoting a culture of practicing knowledge management processes among their managers and employees by motivating and training to promote innovations. Recommendation for Researchers: The result endorsed Fintech innovation’s mediating effect on the relationship between the independent variable, marketing knowledge management (assets and capabilities), and the dependent variable bank performance, which was not addressed before; thus, it needs further validation. Future Research: The current designed research model can be applied and assessed further in other sectors, including banking and industrial sectors across developed and developing countries. It would also be of interest to introduce other variables in the study model that can act as consequences of MKM capabilities, such as financial and non-financial performance measures

Rational Mispricing with Unpredictable Demand Shocks

Movements in prices depend both on innovations to cashflows and changes in investors' demands, which can be modelled as fluctuations in the cross-sectional distribution of wealth across a fixed set of investment objectives. This paper explores the risk that arises when investors do not have perfect information about the wealth distribution to accurately forecast demand shocks, and, as a result, cannot forecast prices accurately, despite having perfect information about cashflows. To take into account this risk, investors plan their consumption for all realisations of the wealth distribution that are possible according to their subjective beliefs about the wealth distribution. This makes markets highly incomplete, and derivative assets become non-redundant. Derivatives serve a dual purpose: they allow investors to adjust consumption for different realisations of the wealth distribution, and provide information required to implement optimal allocation decisions. Asset prices depend on the sensitivity of stochastic discount factor and assets' payoffs to the wealth distribution, creating differences in expected returns between assets that are unrelated to their cashflow risk. Prices of derivatives deviate from the expected cost of creating synthetic derivatives through dynamic trading, creating apparent mispricings between derivatives and primary assets. The imprecise information about the wealth distribution can also induce a demand for dynamic trading, leaving passive investment strategies no longer optimal. Our results also have implications for arbitrage activity, informational efficiency of prices, and the role of financial innovation.

Portfolio performance across genders and generations: The role of financial innovation

Using a unique dataset on the trading transaction records of private investors from Sweden, we explore the role of gender and age in the use of Exchange Traded Products (ETPs), considered to be innovative investment products, with respect to implications for portfolio performance. We show evidence that investors perform better when trading and investing in mutual funds, but younger investors may be relatively more skillful users of ETPs. We also find that older men and women trade more actively, although they also show a better investment performance, and we emphasize that age and gender are very different demographic determinants of investor behavior and performance.

Portfolio Performance Across Genders and Generations: The Role of Financial Innovation

Using a unique dataset on the trading transaction records of private investors from Sweden, we explore the role of gender and age in the use of Exchange Traded Products (ETPs), considered to be innovative investment products, with respect to implications for portfolio performance. We show evidence that investors perform better when trading and investing in mutual funds, but younger investors may be relatively more skillful users of ETPs. We also find that older men and women trade more actively, although they also show a better investment performance, and we emphasize that age and gender are very different demographic determinants of investor behavior and performance.

Bank Performance, Risk and Economic Growth: Role of Financial Innovation

The purpose of study is to examine the impact of financial innovation on bank performance, risk and economic growth in Pakistan. To test study hypotheses, bank level and country level variables are used. Time period of study is 14 years from 2000 to 2013. Data are collected from World Bank, Global Economy, State Bank of Pakistan, Bank Scope databases and Economic Survey of Pakistan. We use correlation matrix and ordinary least square techniques for evaluation. According to hypotheses, we also develop three econometric models to test relationship between depend and independent and control variables. By controlling different variable in model 1, we found positive and statistically significant impact of financial innovation on bank performance. Moreover in model 2 after controlling various bank level indicators we found that financial innovation minimize the risk of bankruptcy. Farther we utilize model 3 to evaluate the relationship between financial innovation and economic growth. Results indicate positive and statistically significant relationship between financial innovation and economic growth.

Financial innovation and economic growth in the SADC

This study empirically establishes the causal relationship between financial innovation and economic growth in the SADC. Using an Autoregressive Distributed Lag (ARDL) Model, estimated by Pooled Mean Group and Dynamic Fixed Effects, the study finds that financial innovation generally has a positive relationship with economic growth in the long run for the SADC. Introducing Mobile Banking props up the role of financial innovation in growth in the SADC. The long-run estimations show mixed effects on proxy variables other than Mobile Banking, strengthening the importance of having appropriate measures for financial innovation. Panel Granger causality tests establish that there is no causality, in any direction, between financial innovation and growth, both in the short and long run.

Model of Creation and Management of the Process of Technological Projects Development

1. Introduction In the modern world, innovations play an important role in development of economic systems. It should be noted that it requires not only the availability of innovational ideas but also their practical realization. At present, creation and management of the process of preparation of innovational technological projects are performed spontaneously in many countries, which reduces effectiveness of innovational projects and hinders their successful realization. This stipulates actuality of development of a new systemic model of creation and management of the process of preparation of innovational technological projects. The purpose of the article is to determine and describe the main principles and the model of creation of regional business accelerator on the basis of technical university for development of innovational startups. 2. Materials and method Theoretical basis of the research includes modern works by the authors in the sphere of study of theory and methodology of clustering of economy, preparation of innovational technological projects, role of financial innovations in development of the service sphere, and peculiarities of financial provision of innovational projects, among which are the works by (Klimova et al., 2015), (Pogodina et al., 2015), (Popkova et al., 2013),(Clement et al., 2015), (Laeven et al., 2015), etc. The work also uses materials of research of modern authors in the sphere of study of models of management of innovational process and building business accelerator, among which the following could be distinguished: (Pfotenhauer et al., 2016), (An & Ahn, 2016), (Shic et al., 2015), (Ooi N --competitions of open innovations of corporations; --discussion clubs, exhibitions and presentations on topical issues and leading research; --presentation of results of works of applied research laboratories, RD --review of projects of venture or seeding funds which have not been selected due to incompleteness of team or lack of business expertise, but have a potential of commercialization. Flow of high-quality technical solutions in business accelerator increases the flow of deals at output. …

Financial innovation and economic growth: evidence from Zimbabwe

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

Mortgage loan securitization and personal consumption smoothening

In this paper we examine the extent to which personal consumptions are sheltered from state-specific economic shocks because of banks’ mortgage loan securitizations. We posit that securitization contributes to personal consumption smoothening due to securitizations’ positive effect on banks’ credit supply, which reduces consumers’ consumption constraints during economic shocks. Using data for U. S. banks’ mortgage loan securitizations from 1989 to 2008, we show that personal consumption smoothening is positively related to securitization. The finding of a significant relationship between loan securitizations and consumption smoothening contributes to the continuing debate on the role of financial innovation in real economy.