Innovation changes and the traditional financial sector

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.