Financial Innovation And Their Role

Abstract

Over the last twenty years, a number of countries have focused on developing innovation in variousforms. Financial innovation is one of the innovations that often presents with contradictory effectsin the perception of many people. In this article, we wanted to present what is the financialinnovation that is its effects on the banking systems of developed countries, on the quality ofcustomer service, on the economy of the country. I have put more emphasis on analyzing the useof financial products, and at the same time using the technologies on the financial market. Wehave tried to demonstrate the effects of derivatives on the efficiency of banking. As researchmethods, we used analysis, comparison, evolutionary approach, synthesis etc.