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According to the grey uncertainty and the connotation of different types weights, the purpose of this paper is to establish the pattern of multi-dimensional grey fuzzy decision making with feedback based on weight vector and weight matrix, and applies this pattern to evaluate the regional financial innovation ability.

At first, this paper analyzes the connotation of financial innovation ability and establishes the evaluation system of regional financial innovation ability. Second, the formula of computing the multi-objective weighted comprehensive value based on weight vector and weight matrix is put forward. In view of the object function with supervised factor and stability coefficient, this paper gives the formulas to compute weight vector and weight matrix. Moreover, the algorithm of the multi-dimensional grey fuzzy decision making pattern with feedback based on weight vector and weight matrix is expressed. At last, this paper uses the presented pattern to evaluate the financial innovation ability of thirty-one provinces in China.

The results are convincing: the development of regional financial innovation is not balanced in China, having obvious spatial clustering feature. The comparisons of evaluation results based on different forms of weights show that the calculating convergence speed of the pattern presented in this paper is fast. The pattern enhances the rationality of the demarcation point between categories, and the convergence within categories, making the evaluation more reasonable.

The method exposed in the paper can be used at evaluating the regional financial innovation ability and even for other similar evaluation problem.

The paper succeeds in realising both the pattern of multi-dimensional grey fuzzy decision making with feedback and evaluating the regional financial innovation ability by using the newest developed theories: weighted grey and fuzzy recognition theory based on weight vector and weight matrix.

The purpose of this paper is to argue that strategic responsiveness is of paramount importance for effective risk management outcomes and to introduce an empirical study to demonstrate this.

Real options logic is adopted to explain how effective risk management capabilities improve performance and how innovation and financial slack enhance this effect. The propositions are examined across 896 companies using two‐stage least square regressions.

The study reveals that risk management effectiveness combines both the ability to exploit opportunities and avoid adverse economic impacts, and has a significant positive relationship to performance. This effect is moderated favorably by investment in innovation and lower financial leverage.

The analysis is based on a sample of large firms, which may affect the generalizability of results. Nonetheless, the study shows that effective risk management capabilities differentiate the firms and determine success and failure. It further underscores the importance of combined innovation policy and capital structure decisions as firms deal effectively with risk and uncertainty.

The findings indicate that corporate management must consider commitments for innovation and financial slack to enhance positive risk management effects. This result is in dire contrast to traditional beliefs that tighter resource management and higher financial leverage lead to better economies.

This is one of few studies to explicitly consider strategic responsiveness as instrumental for effective risk management outcomes while investigating the economic effects associated with the ability to combine generation of upside gains and downside loss avoidance.

The purpose of this paper is to map the existing patterns in the development of services innovations in financial institutions.

The data come from a dedicated survey of banks located in Luxembourg. Executives and innovation managers reported on banks’ innovation processes for the period of 2010-2012.

The study unveils four patterns of new service development (NSD) processes. The problem-driven pattern starts with problem definition and represents a bank’s response to an issue. The proactivity-driven pattern commences with idea generation to explore a variety of alternatives. The market-driven pattern emphasises a profit rationale and starts with a business analysis. The strategy-driven pattern frames idea generation within the scope of business goals and starts with the development of a service concept. Most banks keep a balance between being open and closed to cooperation with external partners in the innovation process. Service concept development is the stage most open to the cooperation for innovation, while introduction to a market is the opposite.

The national context and small sample size are the limitations of this study. Promising research avenues include the extension of findings to other settings and understanding of the effects of NSD patterns.

Banks adopt different approaches to the innovation process in order to pursue their innovation goals. Practitioners may use this knowledge in order to re-think the way they innovate.

The unveiled mapping of NSD processes contributes to the understanding of the innovation in financial services. The findings will be valuable for innovation managers, scholars, and students.

To summarize developments by the US Consumer Financial Protection Bureau (“CFPB”), the US Office of the Comptroller of the Currency (“OCC”), and the UK Financial Conduct Authority (“FCA”) in their respective efforts to facilitate responsible financial innovation, and to predict what the financial services industry may expect in coming months.

This article summarizes financial marketplace developments of particular interest to the CFPB based on the CFPB’s report on its initiative to support responsible financial innovation and CFPB Director Richard Cordray’s speech at the Money 20/20 conference. The article also discusses the OCC’s release of a framework for its “Innovation Initiative”, providing insight to how the agency intends to engage with the fintech industry. Finally, this article explains how the FCA has identified the first cohort of firms to participate in its regulatory sandbox to test new financial products and services as part of the FCA’s wider “Project Innovate” initiative.

Financial technology innovators should closely monitor the agencies’ recent regulatory and policy developments to facilitate responsible financial innovation to be aware of new opportunities and regulatory consequences.

This article provides practical advice for fintech companies and other financial innovators on regulatory and policy updates from experienced financial services lawyers.

In 1971, the patent for the Automated Teller Machine was awarded to David Wetzel. While possibly not the first application of financial technology, since 1971 time, the innovation in the financial industry has grown beyond expectations. However, most studies in innovation ignore the financial sector altogether. In this study, the authors investigate financial technology firms and innovation. After identifying firms that are considered financial technology, the authors collect innovation outcomes such as patents and data breaches associated with those firms. The authors show that patent activity has enjoyed modest growth year over year; however, firms still have challenges to overcome such as market risk and data security. This study serves as a perspective on financial technology.

This paper views the housing and credit bubble 2001–2008 as a sequence starting with a financial innovation in 2001 followed by the superimposition of other financial innovations leading to the prevalence of uncertainty in Knight's sense and ending in the last quarter of 2008 with both market failure and regulation failure. To the extent that financial innovations were an important factor in the development of the bubble, the most obvious question is whether anything can be done to prevent destabilizing innovations from entering the market. The paper outlines a policy proposal to keep pace with financial innovation and strike a balance between innovation and financial stability.

This study aims to examine and validate the impact of marketing knowledge management (MKM) (assets and capabilities) on business performance (BP) via the mediating role of the digital financial innovation in Jordanian commercial banks.

Based on a literature review, recourses-based theory, knowledge-based theory and financial innovation theory, an integrated conceptual framework has been developed to guide the study. A quantitative survey approach was used, and the data was collected from 336 managers and employees in all 13 Jordanian commercial banks using online and in hand instruments. Structural equation modeling was used to analyze and verify the study variables.

The main findings revealed that the MKM had a significant positive influence on BP. Digital financial innovation acted as a partial mediators in this relationship.

This paper contributes to theory by filling a gap in the literature regarding the role of MKM assets and capabilities in commercial banks operating in developing countries such as Jordan. It empirically examines and validates the role of digital financial innovation as mediators between MKM and BP.

The purpose of this paper is to examine the relationship among firm characteristics, innovation, financial resilience and survival of financial institutions in Uganda.

This paper employs a cross-sectional research design, and responses from 143 officers of 40 financial institutions are analyzed using Statistical Package for the Social Sciences. The authors used ordinary least squares regression in testing the hypotheses.

The authors find that firm characteristics of size, age, innovation and financial resilience have a predictive force on survival of public interest firms such as financial institutions.

The implication drawn here is that a combination of firm characteristics, firm innovation and financial resilience explains a significant contribution in the survival chances of financial institutions. However, as much as firm characteristics and financial resilience are significant, innovation explains more of the variances in financial institutions’ going concern appropriateness.

This paper adds to the limited financial institutions literature and provides the first empirical evidence of the efficacy of innovation and financial resilience on financial institutions survival. The auditing profession could consider more seriously the innovation activities and financial resilience of financial institutions in their test for the going concern assumption of such firms.

The purpose of this paper is to review and analyze the characteristics of the literature related to financial innovation, because financial technology (fintech) has been appropriately applied in academic circles as well as in the policy-making arena. The authors further estimate the implications of financial innovations for bank performance and liquidity risk.

The authors use a sample of commercial banks operating in Taiwan over the period 2010–2017 and utilize three proxies for financial innovation including R&D expenditures, financial patents (i.e. innovation applications) and financial news such as that concerning fintech (i.e. innovation intentions).

The effects of financial innovation on bank performance are mixed, with too much of R&D expenditures having the worst bank performance, whereas innovation intentions benefit their performance. The paper concludes that financial innovation does increase banks’ liquidity risk, thus supporting the innovation-fragility hypothesis.

It is an important issue in academic circles as well as in the policy-making arena to ensure that financial innovation has been appropriately applied.

The purpose of this paper is to measure how frequently innovative financial products appeared or became widely adopted in the municipal securities markets over the last two decades; and also investigate what types of issuers adopted the innovations, the relationship between yields and innovation and the patterns of diffusion within states.

Using comprehensive data on municipal securities issued from 1992 to 2015, the author searches for financial innovations as defined in the literature. The author uses issuer fixed effects models to characterize the relationship between yields and use of innovative products. Other models provide estimates of the conditional correlations between issuer characteristics and innovation usage. Finally, the author fits trend models to identify significant differences in the pace of adoption between different types of issuers.

In total, 35 security features fit one or more definitions of innovation. Extensive analysis is presented for four innovations that represent significant transfers of risk: variable rates, put options, corporate backers and derivatives. Small issuers used these innovative products, but the largest issuers adopted them to a greater extent. Usage appears to diffuse within states. Issuance of innovative securities fell during the financial crisis and has not recovered. Novel securities since the financial crisis have been created by legislation rather than by market participants.

The data appear to cover all or nearly all municipal securities, but they do not cover loans or other types of municipal borrowing.

This analysis reveals that financial innovations in municipal securities markets usually take the form of a rare practice becoming widespread rather than a never-before-seen feature appearing in the market. Changes in response to legislation are an exception.

Regulators concerned about financial stability can monitor the expansion of formerly rare securities features. This will be informative about new risks or transfers of risk in the market. They can also anticipate that expanded use of an innovation by states and high-volume issuers will be followed by adoption of the innovations by smaller, less sophisticated issuers in subsequent years.

This paper is the first attempt to empirically analyze the extent of financial innovation in municipal securities. Existing public finance literature has proposed definitions of financial innovation, qualitatively documented some specific innovations and empirically analyzed others. However, no previous study has empirically analyzed the entire municipal securities market for all possible innovations.