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

2021 ◽  
Vol 172 ◽  
pp. 121033
Author(s):  
Leo Van Hove
Keyword(s):  
Financial Innovations ◽  
Retail Payments

Role of Financial Innovations in Proliferation of Economic Instability

2011 ◽  
pp. 56-64
Author(s):  
I. Strelets ◽  
M. Stolbov
Keyword(s):  
Financial Market ◽  
Business Processes ◽  
New Drugs ◽  
Social Progress ◽  
Economic Stability ◽  
Economic Issues ◽  
Financial Innovations ◽  
Financial Products ◽  
The Impact

The authors consider the impact of financial innovations on the macroeconomic situation. The increasing complexity of financial market instruments is the way to decrease its transparency and, consequently, the overall economic stability. The global crisis of 2008-2009 demonstrated the relevance of this problem. However, the authors believe that the nations can take advantage of new financial products, technologies and business processes if the regulators manage to fully track and timely offset the accompanying risks. It is important that execution of the financial innovations correspond with the structure of the funding companies and banks. It is concluded that adequate regulation of financial innovation will allow better use of their potential in order to address a number of important economic issues. In particular, it may help to accelerate the development and introduction of new drugs, to the implementation of environmental projects, the financing of social progress in the developing countries for achieving the Millennium Goals proclaimed by the UN in 2000.

The Federal Reserve and retail payments: a historical review

2018 ◽  
Vol 26 (1) ◽  
pp. 58-71
Author(s):  
Ashish Lall
Keyword(s):  
Federal Reserve ◽  
Historical Review ◽  
Content Type ◽  
Electronic Payments ◽  
The Public ◽  
Visible Hand ◽  
The Usa ◽  
Future Strategy ◽  
Retail Payments

Purpose The purpose of this paper is to provide a comprehensive historical review of the role of the Federal Reserve in retail payments in the USA. Design/methodology/approach It reviews the literature on the role of the Federal Reserve and assessments of its involvement. Findings In addition to its oversight and operational role, the Federal Reserve has conducted R&D and facilitated technology adoption. It has provided effective competition to the private sector without subsidies. Research limitations/implications The Federal Reserve has served the public interest and private networks have benefited from the “visible hand” of government. Practical implications Migration to electronic payments will likely change its role from an operator to setting standards for safety and security. Originality/value The historical review provides context against which the future strategy of the Federal Reserve may be assessed.

Schumpeterian economic development and financial innovations: a conflicting evolution

2014 ◽  
Vol 10 (2) ◽  
pp. 257-277 ◽  
Author(s):  
FARUK ÜLGEN
Keyword(s):  
Economic Development ◽  
Financial Markets ◽  
Regulatory Mechanisms ◽  
Economic Evolution ◽  
Destruction Process ◽  
Economic Stability ◽  
Institutional Dynamics ◽  
Financial Innovations

Abstract:Although in the Schumpeterian process of entrepreneurial innovations money and financial markets are assumed to affect economic development, Schumpeter does not explicitly study financial evolution and its effects on real dynamics. In order to fill this gap, this article suggests a Minsky-inspired interpretation of Schumpeterian institutional dynamics in monetary terms. It then develops a specific Schumpeterian analysis of the evolution of financial institutions and regulatory mechanisms in the wake of the 2007–08 crisis and points to major consequences of financial innovations on economic stability. It appears that unlike the creative destruction process of entrepreneurial innovations, in a liberalised/deregulated environment financial innovations move banks from their crucial role of financing long-term economic evolution and lead to reckless finance. Thus, financial market dynamics put economies on a destructive path. Such an evolution calls for active and tight rational regulation in order to shape capitalist finance towards more stable and welfare-enhancing strategies.

Technological Change and Financial Innovation in Banking

2019 ◽  
pp. 261-284 ◽  
Author(s):  
W. Scott Frame ◽  
Larry Wall ◽  
Lawrence J. White
Keyword(s):  
Technological Change ◽  
Financial Innovation ◽  
Empirical Literature ◽  
New Production ◽  
Financial Innovations ◽  
The Past ◽  
Modern Economy ◽  
New Organizational Forms ◽  
Recent Developments

Financial intermediation has changed dramatically over the past thirty years, due in large part to technological change. The chapter first describes the role of the financial system in a modern economy and how technological change and financial innovation can affect social welfare. We then survey the empirical literature relating to several specific financial innovations, broadly categorized as new production processes, new products or services, or new organizational forms. In each case, we also include examples of significant FinTech innovations that are transforming various aspects of banking. Drawing on the literature on innovations from the 1990s and 2000s informs what we might expect from recent developments.

scholarly journals The Role of Betting on Digital Credit Repayment, Coping Mechanisms and Welfare Outcomes: Evidence from Kenya

2021 ◽  
Vol 9 (1) ◽  
pp. 10
Author(s):  
Richard Chamboko ◽  
Sevias Guvuriro
Keyword(s):  
Coping Strategies ◽  
Emerging Economies ◽  
Financial Services ◽  
Developed Countries ◽  
Easy Access ◽  
Financial Innovations ◽  
Logistic Regressions ◽  
Financially Distressed ◽  
Using Data

Digital financial services and more importantly, mobile money, have become an important financial innovation to advance financial inclusion in developing and emerging economies. While digital financial services have improved the lives of many Kenyans, to the growing betting segment of the Kenyan population, these innovations have also brought great convenience to betting. The innovations have allowed easy access to digital credit which can be used for betting. Despite betting or gambling being a widely studied area, particularly in developed countries, little is known about its interaction with financial innovations such as digital financial services in developing and emerging economies. Using data from a 2017 digital credit survey in Kenya, this study investigates if bettors are more likely than non-bettors to be financially distressed or engage in welfare-undermining coping strategies and potentially experience inferior welfare outcomes. The study uses a representative sample of 1040 digital borrowers, of which 304 were digital bettors. Using multivariate logistic regressions, the study found that, after controlling for socio-economic and demographic factors, bettors are significantly more likely than non-bettors to be financially distressed, engage in welfare undermining coping strategies, and have inferior welfare outcomes.

scholarly journals Krise der Finanzmärkte, Krise der Risikoindividualisierung

2009 ◽  
Vol 39 (154) ◽  
pp. 141-159
Author(s):  
Beat Weber
Keyword(s):  
Financial Crisis ◽  
Financial Sector ◽  
The State ◽  
Private Pension ◽  
Household Debt ◽  
Financial Innovations ◽  
Mortgage Credit ◽  
Current Path ◽  
Recent Financial Crisis

The recent financial crisis is also a crisis of the individualisation of risk. The latter has contributed to the expansion of the financial sector by increasing household debt, mortgage credit and private pension accounts. Financial innovations, intended to transfer risk from the banking to the household sector, have led to an underestimation of risks accumulated in the financial sector. When the crisis broke out, risk which was thought to have been privatised returned to the financial sector, and later on to the state, Initial reform efforts presume that minor modifications of the rules governing the financial sector would allow a continuation of the current path of development, The future distribution of risk within society and the role of the financial sector in managing it are topics which have not been on the agenda in post crisis debates so far.

Some Recent Advances in the Theory of Financial Reporting and Disclosures

2017 ◽  
Vol 31 (3) ◽  
pp. 39-54 ◽  
Author(s):  
Ronald A. Dye
Keyword(s):  
Financial Reporting ◽  
Information Economics ◽  
Fair Value ◽  
Financial Accounting ◽  
Theoretical Research ◽  
Personal Essay ◽  
Voluntary Disclosures ◽  
Financial Innovations ◽  
Academic Assessments

SYNOPSIS This is a personal essay that contains my views on some of the recent history and evolution of the theory of financial accounting and disclosures. The essay starts by discussing how research on information economics by Hirshleifer and Akerlof combined with Demski's critique of academic assessments of accounting standards shifted theoretical research toward emphasizing the role of voluntary disclosures. Grossman's and Milgrom's “unravelling result” is reviewed, as are recent modeling efforts that provide a foundation for studying firms' incomplete voluntary disclosures. The paper also speaks to some contemporary financial reporting problems, such as fair value accounting, and also to an assessment of some recent financial innovations, such as so-called flash trading.

Financial innovations in Islamic countries: the road to perdition or salvation?

2019 ◽  
Vol 11 (6) ◽  
pp. 1579-1600
Author(s):  
Nofie Iman
Keyword(s):  
Financial Services ◽  
Design Methodology ◽  
Marketing Strategies ◽  
Content Type ◽  
The Road ◽  
Financial Innovations ◽  
Islamic Countries ◽  
The Status ◽  
Recent Developments ◽  
Retail Payments

Purpose How do financial innovations form and evolve in Islamic countries? How do nature and the organisation of innovation interact? Focussing on retail payment services, this paper aims to analyse recent developments and displays an overview of the status of financial innovation in Islamic countries. Design/methodology/approach This study uses six countries as case studies, namely, Egypt, Indonesia, Morocco, Pakistan, Turkey and the UAE. Comparison within and across those cases helps the author provide explanations of how and why such innovations have worked in particular contexts. Findings While cash remains dominant, the author found rapid growth in retail payments, but no consensus on standardisation. Several digital innovations have been introduced and begun to converge. Finally, there seems to be a disconnection between innovations and inclusions. Originality/value This research paper is, among the few, related to innovation in financial services in Islamic countries, and can be used to develop appropriate marketing strategies for capturing value in the market.

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