Barriers to Financial Innovation—Corporate Finance Perspective (original) (raw)

Financial Innovations For Companies Offered By Banks: Polish Experience

2015

Financial innovations can be regarded as the cause and the effect of the evolution of the financial system. Most of financial innovations are created by various financial institutions for their own purposes and needs. However, due to their diversity, financial innovations can be also applied by various business entities (other than financial institutions). This paper focuses on the potential application of financial innovations by non-financial companies. It is assumed that financial innovations may be effectively applied in all fields of corporate financial decisions integrating financial management with the risk management process. Appropriate application of financial innovations may enhance the development of the company and increase its value by improving its financial situation and reducing the level of risk. On the other hand, misused financial innovations may become the source of extra risk for the company threatening its further operation. The main objective of the paper is ...

Fintech as a Source of Financial Innovations on the Polish Financial Services Market

Zeszyty Naukowe SGGW w Warszawie - Problemy Rolnictwa Światowego, 2019

The paper presents the definition of innovation, advancement and development of the Fintech sector on the global scale, with particular emphasis put on Poland. Fintechs, i.e. IT companies that provide increasingly more modern solutions for customers active on the financial markets are not fully described in the literature on the subject. The aim of the paper was to present a comprehensive definition of Fintech, show the scale of this type of ventures around the world and in Poland, and analyze the forms and potential of the cooperation of Fintech companies with financial services entities, in particular with the banks. The article uses a critical analysis of the literature of mainly English-language studies from the last 5 years, indicating the state of financial innovations and their importance on the global scale. The author analyzed statistical data from PWC Global Fintech Report, CitiGPS reports, Capgemini reports and KPMG, which enabled her to present the value of global invest...

Innovative Management of Finance and Marketing at Enterprises in Poland

2014

The purpose is to examine and present the possibilities and results of implementation of innovative solutions in the two functional, different from each other, but interdependent areas of management: finance and marketing management. The analysis concerns enterprises in the Polish market. The empirical investigation carried out in mid-2009 on the nation-wide sample of 608 enterprises, selected by the method of purposive sampling, taking into account the following stratification criteria: enterprise size, branch and location. The surveys were carried out by the method of direct interview with managers of top management. The article identifies the scale and range of implementation of innovative solutions in finance and marketing management as well as effects of this process for enterprises’ competitiveness. The conclusions provide knowledge that may be useful for the staff managing enterprises, interested in raising their competitiveness and improvement of management procedures, seeking knowledge on new solutions in this respect and oriented at implementation of innovative solutions in managerial processes. Recipients may also be representatives of institutions of the business environment supporting activities of enterprises as regards formation of the competitive position and optimisation of the processes of management, including proinnovative institutions. Due to the rapidly changing economic reality and the need for continuing adjustment of ever intensifying processes of competition, managers need knowledge on the use of innovations in the management processes. In the article, based on the unique findings, there are shown the possibilities of implementation of innovative solutions in the sphere of finance and marketing. There are also shown benefits that activity in this respect may yield.

THE ROLE OF INNOVATIONS ON FINANCIAL PERFORMANCE

Kenya has evolved in innovation over the years, her being the home to an early entrant form of mobile money banking with world class standards. The innovation in financial sector has propel the industry to higher heights. This thesis was to study the role of innovations in the commercial banks in Kenya and especially on KCB groups in Nairobi County. The study focused on the role of innovations on financial performance of commercial banks. The researcher was guided by the following objectives; to determine the role of product innovation, process innovations and ICT integration on financial performance of KCB bank. The scope of the study was in all KCB Group braches in Nairobi County. The sample size was 132 staffs of the target population by using the Loren Morgan formulae; the target population was 200 management staff in KCB Group branches. This research was adopted a descriptive survey design with questionnaire being the basic tool for collection of primary data. Data was collected by use of questionnaires. Data was analyzed and presented using descriptive and inferential statistical tools to determine the relationship between independent and dependent variables. In addition, advanced statistical technique was a used. SPSS (Statistical package for social sciences) version 23 model was used in data analysis. The information was displayed using tables and graphs. The study depicted that there is proper significant positive correlation on product Innovation, ICT integration, Process Innovation and Marketing Innovation to the role of innovations on financial performance of commercial banks in Nairobi County in Kenya.

Can we have a general theory of financial innovation processes? A conceptual review

Financial Innovation

Introduction: Since the financial crisis of 2008, the theory of financial innovation has been a focus at a time of re-evaluation and re-conceptualization. However, little has been done to evaluate the current state of research considering the increasing complexity of financial innovation. This paper examines the hypothesis of a general theory that encompasses increasing complexities in the financial innovation process. Methods: The paper begins with an overview of the definitions, the features, and the classification schemes of financial innovation. Additionally, the paper reviews the existing literature on the main objects of study in financial innovation and groups the findings under four main concepts. A conceptual analysis is presented that evaluates current approaches to the study of the financial innovation process and the difficulties inherent in constructing a single general theory. The paper proposes a framework based on a meta-theory of financial innovation as a better approach to understanding the inherent complexities and diversities affecting financial innovations. Discussion: (1) Financial innovations present diversities and complexities that make it infeasible to build a unifying general theory to explain their development. (2) The current state of research on financial innovation theories is limited and requires additional input. (3) A meta-theory that identifies, classifies, and connects theories of development for financial innovations is better suited to explaining the complexity of financial innovation processes.

ASSESSING THE ROLE OF FINANCIAL INNOVATIONS IN ENHANCING BUSINESS PERFORMANCE

zenith

The purpose of the study is to measure the impact of financial innovations on business performance of commercial banks. In this regard, the present study includes three important financial innovations in banking sector i.e. internet banking, mobile banking and agency banking. Two hundred managers of J&K Bank (one one branch manager and one assistant branch manager of each branch) were contacted for data collection. Census method was used to contact the managers of J&K Bank for data collection and examination. Exploratory Factor Analysis, Confirmatory Factor Analysis and SEM were used to analyse the impact of financial innovations on business performance. The study results reveal that internet banking, mobile banking and agency banking is significantly and positively related to business performance. The present study also found that internet banking is the most important financial innovation followed by mobile banking and agency banking. The study is limited to employee perception of J&K Bank only. Other stakeholder’s perception like customers and front line officers in commercial banks needs to be explored. In order to improve the business performance of commercial banks, the banks should give greater emphasis on customer satisfaction by ensuring the safety and security of customers

Effect Of Financial Innovation On Financial Performance.pdf

This study`s main objective was to investigate the effects of financial innovation on financial performance of deposit-taking SACCOs in Kajiado County. Past studies give an insight into what has already been done in the field of financial innovation and how it impacts financial performance. The researcher pinpoints the strength and weaknesses in the reviewed literature. The resultant information, however, guided this study in addressing the identified gaps in scholarship. The study adopted a descriptive research design. Forty employees of the deposit-taking SACCOs in Kajiado County formed the research sample. Stratified sampling was used to obtain a sample of respondents from whom data was collected. Primary data was collected and analyzed using quantitative and qualitative techniques and then presented using graphs and tables. A self-administered questionnaire was delivered to the respondents and collected after completion. Secondary data was obtained from annual reports, libraries and the SACCO databases. Data was analyzed by use of SPSS. It was established that product, process and organizational innovations are the critical factors that influence the performance of the financial status of deposit-taking SACCOs in Kajiado County. The study recommends that SACCOs require qualified and experienced employees who are capable of meeting new challenges of competition particularly from banks and the government should enact legislations which will protect members' savings and promote prudential supervision of the industry.

Innovation changes and the traditional financial sector

Humanities & Social Sciences Reviews, 2022

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 digi...

Financial Innovations and Financial Performance : Perceptions of Commercial Bank Executives

2019

The emergence of technology in the Ghanaian banking sector has had a huge impact in the development of financial innovative products today. The introduction of these financial innovative products has transformed and continues to revolutionize banking today, and banks in Ghana are no exception to this transformation. This study aims at examining the impact of financial innovations on the financial performance of selected banks in Ghana in terms of their income or revenue generation, efficiency, liquidity, profitability and general patronage of banking services in Ghana. This work is a survey of bank executives from universal banks in Accra and Kumasi. Questionnaires were administered to find out the opinions of bank executives on the impact of financial innovations on financial performance. From the study, it was discovered that financial innovations improve significantly the efficiency, liquidity and profitability of the banks. In addition, its recommended that corporate banks must ...

Innovative economy, and the activity of financial market institutions. Case of Poland

Journal of International Studies, 2016

Th e article presents the institutional arrangements in Poland concerning the support of innovative activity of enterprises, mainly in the scope of availability of fi nancing sources. Th e main aim of the study is to assess the activity of fi nancial market institutions in the fi eld of innovations fi nancing and the attempt to present the relations between the availability of capital and the level of economy's innovativeness. Innovativeness of the economy is the result of interrelatedness between companies, science and government, but the factor determining innovativeness is capital availability. Although the off er of funding sources of innovation is wide, it can be argued that its use is unsatisfactory. Mainly banks are responsible for such a situation, which are characterized by, in addition to certain regulatory restrictions, risk aversion. Banks, achieving fi nancial benefi ts during conducted activities, do not see, so far, a need to engage in risky ventures, that innovation fi nancing is considered.