Financial innovations as a tool of acceleration of the turnover of goods and services

Abstract

The steady growth of demand for means of circulation and payment is one of the features of the modern economy. In the conditions of high rates of technological development there are possibilities of use of new forms of money on electronic carriers. But in the course of the evolution of money the general laws of the functioning of the monetary mechanism are preserved. Among the most important of them there is the flexibility of the money supply, i.e. its ability to change as the phases of the economic cycle change. Activation of product turnover is accompanied by the emergence and development of innovative financial instruments. Financial innovations are defined by various authors as actions of creation and popularization of new financial instruments as well as new financial technologies, markets and institutions. Considering more broadly financial innovations is an act of creating and then popularization of new financial instruments, technologies, institutions, markets, processes and business-models including new applications, existing ideas in a different market context [1,3]. However, the authors acknowledge that the definitions do not cover the full complexity of innovation in financial services where one new product can combine a variety of innovative functions: turnover, organizational form, marketing and other customer segments as well as the development of supporting infrastructure.