Page 6 - Special Issue Modern Trends in Scientific Research and Development, Case of Asia

International Journal of Trend in Scientific Research and Development (IJTSRD)
Special Issue on Modern Trends in Scientific Research and Development, Case of Asia
Available Online: www.ijtsrd.com e-ISSN: 2456 – 6470

The Role of Financial Technologies in the Global Economy

Taniev A. B PhD
Samarkand State University, Samarkand, Uzbekistan

ABSTRACT The concept of fintech has matured greatly since its
The article analyses the global trends in the development of inception. Early innovation area such as payments and
financial technologies, and their role in the development of lending have seen strong maturation, with more established
global economy. We tried to research the existing trends in fintechs (businesses applying new financial technologies)
the development of financial sector and highlight the nature now looking to move beyond niche markets to offer adjacent
of the new-coming innovations. services and, in some cases, full stack solutions. For example,

Europe has seen a number of fintechs (e.g. Klarna, Zopa and
KEYWORDS: financial technologies, innovations, venture Revolut) apply for banking licenses in order to expand their
funds, angel investors, global economy product offerings. Meanwhile, countries such as Australia
and the US are mulling the introduction of fintech-focused
INTRODUCTION banking licenses, which could spur investment over time
Today the role of innovation is enormous in the rapid should they move forward . The Financial Services industry
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economic development. Especially, services sector is thirsty is transforming with the emergence of innovative new
for new ideas. Even though services are increasingly products, channels and business models. This wave of
dominating the world economy, contributing over 70% of change is primarily driven by evolving customer
employment in OECD countries and 58% of worldwide gross expectations, digitalization, as well as continued regulatory
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national product , relatively small number of systematic and cost pressures.
research work has been carried out on service innovations.
In general, innovation is seen as a persuasive avenue for In recent years the rise of fintech in the developing countries
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organizations to create value and competitive advantage . has contributed to the faster expansion of digitalization and
With the growth of services in organizations and economy, development of financial system. If we look into the situation
attention has been focused on innovation in the context of in former Soviet republics, we can observe attempts to
services over the last two decades .One of the leading service leapfrog into innovational economy. Crowdfunding has
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innovator -the Catalan restaurant El Bulli, named for several already gained significant traction in a growing number of
years amongst the world best restaurants and famed as a emerging economies, including in some African countries
radical innovator in the sector, developed over time as one where credit constraints are particularly severe. These early
component of a broader platform of activities which included successes suggest that there could be considerable potential
upstream collaborations with the science base as well as for fintech to enable these economies to leapfrog to a
downstream interactions, amongst others, with food financial system where entrepreneurship and innovation
manufacturers and the hospitality sector . may thrive . It has become obvious that without resilient and
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effective financial system, it is hard to imagine creating
The process of economic digitalization further enables world national innovation system. The experience of China, India
economy to expand through service innovations. Here the and Singapore shows that balanced growth of financial
role of emerging financial technologies (fintech) is crucial as services with industrial growth, R&D, development of
they have the potential to enhance economic productivity education system and other areas may create opportunity to
and ultimately foster a more inclusive and resilient financial foster national innovation system.
system. Policymakers may play a key role in unlocking the
benefits of financial innovation, while seeking to safeguard a Literature Review
level playing field for market participants, consumer and Interestingly, a service approach to business is not limited to
investor confidence, trust and overall resilience in the subsectors of the economy that are classified as services in
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financial system . standard industry statistics. Services are also economic
activities that can be performed by product-based
businesses. Several manufacturing firms are significantly
expanding the range of services they provide in combination
1 Baltacioglu T, Ada E, Kaplan MD, Yurt O, Kaplan YC (2007) A
new framework for service supply chains. Serv Ind J 27(2):105– with their core products as a way to enhance value creation
124 and customer retention opportunities. Companies such as
2 Pitelis CN (2009) The co-evolution of organizational value IBM, Xerox, and Rolls Royce now derive growing shares of
capture, value creation and sustainable advantage. Org Stud their total revenues from service activities, although they are
30(10):1115–1139 not considered as service businesses, and they often develop
3 Chan A, Go FM, Pine R (1998) Service innovation in hong kong:
attitudes and practice. Serv Indus J 18(2):112–124
4 Chesbrough, H., 2011. Open Service Innovation: Rethinking
Your Business to Growand Compete in a New Era. Jossey Bass,
San Francisco, CA. 6 The Pulse of Fintech Q4 2017. Global analyses of investment in
5 G20/OECD High-Level Principles on SME Financing, fintech. P.5
https://www.oecd.org/finance/ G20-OECD-High-Level- 7 L.Casanova, P.K.Cornelius, S.Dutta –“Financing entrepreneurship
%20Principles-on-SME-Financing.pdf. and innovation in Emerging Markets”. P.22

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