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Innovation changes and the traditional financial sector
Corresponding Author(s) : Agnieszka Wójcik-Czerniawska
Humanities & Social Sciences Reviews,
Vol. 10 No. 1 (2022): January
Abstract
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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- An, H. R., Kim, S. Y., & Kim, C. K. (2018). Connectivity in global stock markets during the financial crisis. Crisis and Emergency Management: Theory and Praxis, 14(1), 193–211. https://doi.org/10.14251/crisisonomy.2018.14.1.193 DOI: https://doi.org/10.14251/crisisonomy.2018.14.1.193
- Ann Shaji, N. (2016). A survey on biometrics authentication for online transactions. International Journal of Engineering and Computer Science. https://doi.org/10.18535/ijecs/v5i11.93 DOI: https://doi.org/10.18535/ijecs/v5i11.93
- Arthur, K. N. A. (2017). Financial Innovation and its governance: Cases of two major innovations in the financial sector. Financial Innovation, 3(1). https://doi.org/10.1186/s40854-017-0060-2 DOI: https://doi.org/10.1186/s40854-017-0060-2
- Bayona, A., & LLpez, ngel L. (2018). Silent financial interests and product innovation. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3199740 DOI: https://doi.org/10.2139/ssrn.3199740
- Berlinger, E. (2017). Implicit rating: A potential new method to alert crisis on the interbank lending market. Finance Research Letters, 21, 277–283. https://doi.org/10.1016/j.frl.2016.11.010 DOI: https://doi.org/10.1016/j.frl.2016.11.010
- Changes in the financial performance of traditional intermediaries for financial Innovation. (2019). VOLUME-8 ISSUE-10, AUGUST 2019, REGULAR ISSUE, 8(10), 3723–3728. https://doi.org/10.35940/ijitee.j1052.0881019 DOI: https://doi.org/10.35940/ijitee.J1052.0881019
- Chuen, D. L. K., & Ling, C. L. S. (2020). Blockchain use cases for inclusive fintech: Scalability, privacy, and trust distribution. The Journal of FinTech, 2050003. https://doi.org/10.1142/s2705109920500030 DOI: https://doi.org/10.1142/S2705109920500030
- Cong, P. T. (2019). Creative industries, investment trends and their impact on the economy and financial sectors: A study from Vietnam. International Journal of Innovation, Creativity and Change, 31–49. https://doi.org/10.53333/ijicc2013/07504 DOI: https://doi.org/10.53333/IJICC2013/07504
- DOĞAN, M., & ÖVENÇ, G. (2021). Central bank digital currencies under blockchain technology: Discussion of digital bank runs and design principles. European Journal of Science and Technology. https://doi.org/10.31590/ejosat.916233 DOI: https://doi.org/10.31590/ejosat.916233
- E Jarrett, J. (2015). On internet banking. The Journal of Internet Banking and Commerce, 20(2). https://doi.org/10.4172/1204-5357.1000101 DOI: https://doi.org/10.4172/1204-5357.1000101
- Foianini, I., & Dragani, J. (2015). Building a Career in Reserves Estimation. The Way Ahead, 11(02), 22–24. https://doi.org/10.2118/0215-022-twa DOI: https://doi.org/10.2118/0215-022-TWA
- Hoag, C. (2016). Clearinghouse loan certificates as interbank loans in the united states, 1860–1913. Financial History Review, 23(3), 303–324. https://doi.org/10.1017/s0968565016000196 DOI: https://doi.org/10.1017/S0968565016000196
- Jacolin, L., Massil Joseph, K., & Noah, A. (2019). Informal sector and mobile financial services in developing countries: Does financial Innovation matter? SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3396046 DOI: https://doi.org/10.2139/ssrn.3396046
- Jeet, V., & Aspal, P. K. (2020). The determinant of financial performance of Indian public sector banks- A panel data approach. International Journal of Financial Research, 11(5), 285. https://doi.org/10.5430/ijfr.v11n5p285 DOI: https://doi.org/10.5430/ijfr.v11n5p285
- Kerstens, N., Dolmans, S., & Reymen, I. (2018). Initiating cross-sectoral Innovation – bringing space technology to other sectors. Academy of Management Proceedings, 2018(1), 18182. https://doi.org/ 10.5465/ambpp.2018.18182abstract DOI: https://doi.org/10.5465/AMBPP.2018.18182abstract
- Krylov, S. (2016). Applied strategic financial analysis as an innovative instrument to strategic research aspects of the organization financial activity. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.2834252 DOI: https://doi.org/10.2139/ssrn.2834252
- Leong, K. (2018). FinTech (financial technology): What is it and how to use technologies to create business value in a fintech way? International Journal of Innovation, Management and Technology, 9(2), 74–78. https://doi.org/10.18178/ijimt.2018.9.2.791 DOI: https://doi.org/10.18178/ijimt.2018.9.2.791
- Messori, M. (2002). Credit and money in Schumpeter's theory. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.320883 DOI: https://doi.org/10.2139/ssrn.320883
- Popadić, M. (2016). Exploratory innovation, exploitative innovation and innovation performance: the moderating role of alliance partner diversity. Economic and business review, 18(3), 293–318. https://doi.org/10.15458/85451.26 DOI: https://doi.org/10.15458/85451.26
- Pradhan, R. P., Arvin, M. B., Nair, M., Bennett, S. E., & Hall, J. H. (2018). The dynamics between energy consumption patterns, financial sector development and economic growth in financial action task force (FATF) countries. Energy, 159, 42–53. https://doi.org/10.1016/j.energy.2018.06.094 DOI: https://doi.org/10.1016/j.energy.2018.06.094
- Prentice, C. R. (2016). Why so many measures of nonprofit financial performance? Analyzing and improving the use of financial measures in nonprofit research. Nonprofit and Voluntary Sector Quarterly, 45(4), 715–740. https://doi.org/10.1177/0899764015595722 DOI: https://doi.org/10.1177/0899764015595722
- Serena, L., D’Angelo, G., & Ferretti, S. (2021). Security analysis of distributed ledgers and blockchains through agent-based simulation. Simulation Modelling Practice and Theory, 102413. https://doi.org/10.1016 /j.simpat.2021.102413 DOI: https://doi.org/10.1016/j.simpat.2021.102413
- Singh, J., Kumar, A., & Raghuvanshi, K. K. (2021). Evaluation of mobile-based digital payments and challenges. International Journal of Digital Literacy and Digital Competence, 12(1), 15–29. https://doi.org/10.4018/ijdldc.2021010102 DOI: https://doi.org/10.4018/IJDLDC.2021010102
- Wang, Z. (2021). Research on risk control strategies of consumer finance based on big data technology. Finance and Market, 6(1), 40. https://doi.org/10.18686/fm.v6i1.3173 DOI: https://doi.org/10.18686/fm.v6i1.3173
References
An, H. R., Kim, S. Y., & Kim, C. K. (2018). Connectivity in global stock markets during the financial crisis. Crisis and Emergency Management: Theory and Praxis, 14(1), 193–211. https://doi.org/10.14251/crisisonomy.2018.14.1.193 DOI: https://doi.org/10.14251/crisisonomy.2018.14.1.193
Ann Shaji, N. (2016). A survey on biometrics authentication for online transactions. International Journal of Engineering and Computer Science. https://doi.org/10.18535/ijecs/v5i11.93 DOI: https://doi.org/10.18535/ijecs/v5i11.93
Arthur, K. N. A. (2017). Financial Innovation and its governance: Cases of two major innovations in the financial sector. Financial Innovation, 3(1). https://doi.org/10.1186/s40854-017-0060-2 DOI: https://doi.org/10.1186/s40854-017-0060-2
Bayona, A., & LLpez, ngel L. (2018). Silent financial interests and product innovation. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3199740 DOI: https://doi.org/10.2139/ssrn.3199740
Berlinger, E. (2017). Implicit rating: A potential new method to alert crisis on the interbank lending market. Finance Research Letters, 21, 277–283. https://doi.org/10.1016/j.frl.2016.11.010 DOI: https://doi.org/10.1016/j.frl.2016.11.010
Changes in the financial performance of traditional intermediaries for financial Innovation. (2019). VOLUME-8 ISSUE-10, AUGUST 2019, REGULAR ISSUE, 8(10), 3723–3728. https://doi.org/10.35940/ijitee.j1052.0881019 DOI: https://doi.org/10.35940/ijitee.J1052.0881019
Chuen, D. L. K., & Ling, C. L. S. (2020). Blockchain use cases for inclusive fintech: Scalability, privacy, and trust distribution. The Journal of FinTech, 2050003. https://doi.org/10.1142/s2705109920500030 DOI: https://doi.org/10.1142/S2705109920500030
Cong, P. T. (2019). Creative industries, investment trends and their impact on the economy and financial sectors: A study from Vietnam. International Journal of Innovation, Creativity and Change, 31–49. https://doi.org/10.53333/ijicc2013/07504 DOI: https://doi.org/10.53333/IJICC2013/07504
DOĞAN, M., & ÖVENÇ, G. (2021). Central bank digital currencies under blockchain technology: Discussion of digital bank runs and design principles. European Journal of Science and Technology. https://doi.org/10.31590/ejosat.916233 DOI: https://doi.org/10.31590/ejosat.916233
E Jarrett, J. (2015). On internet banking. The Journal of Internet Banking and Commerce, 20(2). https://doi.org/10.4172/1204-5357.1000101 DOI: https://doi.org/10.4172/1204-5357.1000101
Foianini, I., & Dragani, J. (2015). Building a Career in Reserves Estimation. The Way Ahead, 11(02), 22–24. https://doi.org/10.2118/0215-022-twa DOI: https://doi.org/10.2118/0215-022-TWA
Hoag, C. (2016). Clearinghouse loan certificates as interbank loans in the united states, 1860–1913. Financial History Review, 23(3), 303–324. https://doi.org/10.1017/s0968565016000196 DOI: https://doi.org/10.1017/S0968565016000196
Jacolin, L., Massil Joseph, K., & Noah, A. (2019). Informal sector and mobile financial services in developing countries: Does financial Innovation matter? SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3396046 DOI: https://doi.org/10.2139/ssrn.3396046
Jeet, V., & Aspal, P. K. (2020). The determinant of financial performance of Indian public sector banks- A panel data approach. International Journal of Financial Research, 11(5), 285. https://doi.org/10.5430/ijfr.v11n5p285 DOI: https://doi.org/10.5430/ijfr.v11n5p285
Kerstens, N., Dolmans, S., & Reymen, I. (2018). Initiating cross-sectoral Innovation – bringing space technology to other sectors. Academy of Management Proceedings, 2018(1), 18182. https://doi.org/ 10.5465/ambpp.2018.18182abstract DOI: https://doi.org/10.5465/AMBPP.2018.18182abstract
Krylov, S. (2016). Applied strategic financial analysis as an innovative instrument to strategic research aspects of the organization financial activity. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.2834252 DOI: https://doi.org/10.2139/ssrn.2834252
Leong, K. (2018). FinTech (financial technology): What is it and how to use technologies to create business value in a fintech way? International Journal of Innovation, Management and Technology, 9(2), 74–78. https://doi.org/10.18178/ijimt.2018.9.2.791 DOI: https://doi.org/10.18178/ijimt.2018.9.2.791
Messori, M. (2002). Credit and money in Schumpeter's theory. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.320883 DOI: https://doi.org/10.2139/ssrn.320883
Popadić, M. (2016). Exploratory innovation, exploitative innovation and innovation performance: the moderating role of alliance partner diversity. Economic and business review, 18(3), 293–318. https://doi.org/10.15458/85451.26 DOI: https://doi.org/10.15458/85451.26
Pradhan, R. P., Arvin, M. B., Nair, M., Bennett, S. E., & Hall, J. H. (2018). The dynamics between energy consumption patterns, financial sector development and economic growth in financial action task force (FATF) countries. Energy, 159, 42–53. https://doi.org/10.1016/j.energy.2018.06.094 DOI: https://doi.org/10.1016/j.energy.2018.06.094
Prentice, C. R. (2016). Why so many measures of nonprofit financial performance? Analyzing and improving the use of financial measures in nonprofit research. Nonprofit and Voluntary Sector Quarterly, 45(4), 715–740. https://doi.org/10.1177/0899764015595722 DOI: https://doi.org/10.1177/0899764015595722
Serena, L., D’Angelo, G., & Ferretti, S. (2021). Security analysis of distributed ledgers and blockchains through agent-based simulation. Simulation Modelling Practice and Theory, 102413. https://doi.org/10.1016 /j.simpat.2021.102413 DOI: https://doi.org/10.1016/j.simpat.2021.102413
Singh, J., Kumar, A., & Raghuvanshi, K. K. (2021). Evaluation of mobile-based digital payments and challenges. International Journal of Digital Literacy and Digital Competence, 12(1), 15–29. https://doi.org/10.4018/ijdldc.2021010102 DOI: https://doi.org/10.4018/IJDLDC.2021010102
Wang, Z. (2021). Research on risk control strategies of consumer finance based on big data technology. Finance and Market, 6(1), 40. https://doi.org/10.18686/fm.v6i1.3173 DOI: https://doi.org/10.18686/fm.v6i1.3173