Modern Economics (Feb 2020)
The Impact of Financial Innovation on Economic Development
Abstract
Abstract. The article presents theoretical and methodical approaches to the essence of the definition of ""financial innovations"" in modern scientific literature. The features, content, forms of modern financial innovations are considered, the estimation of their influence on the development of the financial system and the economy as a whole is determined. The classification of financial innovations according to their functions, types of activities, categories, substantive forms, types of innovations, according to the novelty of the place of implementation, by their innovative role is given. Purpose. The article substantiates that today, the global financial market has a significant untapped potential, the effective use of which should become a priority task of further innovative development of the Ukrainian economy. It has been proved that in modern conditions digitalization of financial relations is a decisive element of transformation of both the financial market and the economy as a whole. Result. The article proves that in modern conditions digitalization of financial relations is a decisive element of transformation of both the financial market and the economy as a whole. Financial innovations increase the quality and efficiency of the payment system, simplify the mechanisms of investing and lending, significantly improve the mechanisms of the monetary system in the economy. Conclusion. The article determines that in the conditions of transformation of economy and financial markets the most promising directions of development and implementation of financial innovations are: money transfers and payments; alternative forms of financing, insurance and capital management of companies. Thus the global financial market today has a significant untapped potential the effective use of which should become a priority task of further innovative development of the Ukrainian economy.
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