financial innovation

Financial innovation

Design of any new financial product, such as exotic currency options and swaps.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Financial Innovation

The creation of a new investment vehicle. For example, one may structure a derivative in a way that has never been done before. Financial innovation can increase efficiency and profits for certain parties. However, it often takes time for regulation to catch up to financial innovation, which can make it risky.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

financial innovation

the development by FINANCIAL INSTITUTIONS of new financial products and processes for the transmission of money and the lending and borrowing of funds, for example, telephone banking services, direct debit systems, credit cards, etc. These developments have augmented the traditional means of transmitting money (cash, cheques) and may have served to increase the velocity of circulation of money. They have also increased the availability of CREDIT and, by creating new ‘NEAR MONEY’ assets, have served to extend the liquidity base of the economy. This has tended to make the application of MONETARY POLICY by the authorities more complex.
Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005
References in periodicals archive ?
Financial innovation has brought a new trend to the modern financial system and its importance has been widely recognized.
Nout Wellink also said that revised standards need to keep pace with financial innovation in the banking system.
As well as taking the top prize in the IFS Financial Innovation Awards, HSBC won two individual categories -best internet banking service, for its Business Internet Banking service, and most innovative e-delivery channel, for HSBC DriverQuote, which enables fleet managers and company car drivers to get quotes and order vehicles online.
Abstract: This paper reviews the extant empirical studies of financial innovation. Adopting broad criteria, the authors found just two dozen studies, over half of which (fourteen) had been conducted since 2000.
In August 2018, the DFSA, in collaboration with 11 other financial regulators and associated organisations from around the world, established a Global Financial Innovation Network (GFIN) which will seek to conduct joint policy work, share experiences of financial innovation, and enable cross border testing of innovative financial services.
Pintec Technology inked a strategic partnership agreement with Bank of Ganzhou in Jiangxi Province for cooperation in financial innovation and services, including fintech research and development, intelligent asset allocation and e-commerce.
Today the Global Financial Innovation Network (GFiN) published a report highlighting the efforts of the international community of regulators, including the Dubai Financial Services Authority (DFSA), in driving global FinTech innovation and cross-border testing of innovative ideas.
Financial innovation is already enticing deep-pocketed investors to fund solar projects around the world, from the sunniest deserts to the poorest villages.
The agencies are to collaborate to provide financial innovation and also work together on joint research projects.
'They wanted a focused platform where the interests of valuers could be adequately addressed considering among others, the challenges and opportunities being brought about by globalisation, the fourth industrial revolution and financial innovation in our liberal market economy, issues of poor regulation of the profession which threatened its viability,' revealed Mr Mengwe.
Bahrain's banking and financial services regulator said the move was a part of the Global Financial Innovation Network (GFIN).

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