“Innovations in Financial Services”

Our economy is about ideas, exploration and experimentation-business people imagining new concepts, entrepreneurs engineering new products, and financiers strategically envisioning which innovations to back. Throughout the economy, from manufacturing to technology to education to healthcare, innovation is at the core of successful companies' focus. Academics and business professionals believe that, to be successful in this global environment, companies must continually improve and restructure products, services, and operations. To win the game of business, companies function in order to provide customers with more value, to respond to new needs with new products, and to integrate new technologies and processes into their models. This means companies must innovate. Driven by globalization, technological change, deregulation, and other forces, our economy has experienced dramatic changes in structure and competition. A well-functioning financial sector is crucial to the economy, hence it is important to understand its innovation dynamics. Financial services sector is an extremely attractive arena for organizational innovation studies due to its complexity and importance. The industry plays a critical role for business and entrepreneurial growth and also for understanding its innovative processes is essential as firms compete in this environment. Relationships between intermediaries and their customers have become increasingly important in recent years. This paper argues that the need for costly ex ante information acquisition and analysis is a major barrier to the participation of investors and firms in sophisticated markets. Long-term relationships between intermediaries and their customers, in which intermediaries provide implicit insurance to customers, can be an effective substitute for costly ex ante investigation. In this way, intermediaries allow firms and investors to reap the benefits of financial markets. In this research, researcher has used exploratory research design. The significance of the study is that innovation in financial services will help in achieving faster economic growth and development.