Modern Types of Financial Innovations in the Conditions of Digitalization of the Global Banking System

Abstract

This article reveals the features of the influence of innovation processes on the transformation of financial services, contains the principles of financial innovations, presents a classification of financial services in terms of provided services segments. There are highlighted problems in the functioning of banks in the modern banking ecosystem and presented the possibilities for transforming the patterns of their activities. The possible risks associated with the innovation activities of banks are detailed analyzed, and the general aspects of their regulation are presented. Keywords-innovation; banking services and products; innovative banking products; fintech; financial technologies I. The total global investment in financial technology in 2018 amounted to about 111.8 billion dollars, actually doubling compared with the previous year ("Fig. 1").

Effect of Foreign Banking Capital on the Financial Innovativeness of the Country: Evidence from Former Soviet Union and Young EU Members Countries

“…Today, there are many scientific papers exploring the role of financial innovation in the country's economic development [1, 2, 5-9], increasing business competitiveness [3,10,11], the formation of demand in the money market [12,13], the functioning and digitalization of the financial market [14][15][16][17][18][19][20][21][22][23][24][25], banking sector [26][27][28][29][30][31][32][33][34][35][36][37] and international banking [38][39][40][41][42], etc. Valuable information on these issues is also contained in the reports of the OECD 3 and Pricewaterhouse Coopers.…”