10. Tat’yana V. Nikitina, Mariya A. Gal’per, Vladislav V. Kibasov, Egor G. Chernov

Implementation and Regulation of Innovations in Global Financial Services Markets

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Tat’yana V. Nikitina

Director of the International Centre for Financial Markets Research (ICFMR), professor of the Department of Saint-Petersburg State University of Economics, Doctor of Economics

Sadovaya Str. 21, St. Petersburg, Russian Federation, 191023

Mariya A. Gal’per

Research Associate of the International Centre for Financial Markets Research (ICFMR)

Sadovaya Str. 21, St. Petersburg, Russian Federation, 191023

Vladislav V. Kibasov

Postgraduate Student of Saint-Petersburg State University of Economics

Sadovaya Str. 21, St. Petersburg, Russian Federation, 191023

Egor G. Chernov

Postgraduate Student of Saint-Petersburg State University of Economics

Sadovaya Str. 21, St. Petersburg, Russian Federation, 191023

This study is based on the global experience in the implementation and regulation of innovations in financial markets.
Aim. This study aims to present the experience of various countries in the implementation and regulation of innovations in financial markets in a structured fashion with the purpose of developing a constructive model of financial market development.
Tasks. This study provides a definition of financial innovation and determines its impact on the development of the financial market and identifies major principles of regulation in terms of facilitating harmonious development of the financial market.
Methods. This study uses general methods of scientific cognition to examine in various aspects the examples of financial innovations and principles of financial market regulation in the context of a changing environment as part of a concept of transition towards a new paradigm. Induction technique is used to determine the role of innovations in financial market development.
Results. Innovations introduced to the financial market often come not from banks and other conventional market participants, but from emerging financial institutions, which are not even subject to regulation. Such participants facilitate financial market development, but also bring about new risks. For innovations to cause national economic growth, regulators should constantly monitor the market, adjusting legislation and communicating with all market participants.
Conclusion. Innovations are a prerequisite for economic development. The principles that should guide the regulator in order to achieve a positive effect from innovations include a positive-neutral attitude to new participants with continuous monitoring of their activity and optimization of the balance between recent developments and traditional elements of the financial market.

Keywords:financial innovations, innovations in the banking business, financial market regulation, IT risks, implementation of innovations in banks, cooperation between banks and fintech companies

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