A critical review of determinants of financial innovation in global perspective

Financial innovation is the widely accepted process across the globe. ‘What forces drive the financial innovation?’ is the research question since long. Many studies were conducted in the past to answer and each study identified some or other factors that prominently driving financial innovation landscape in their respective economy. The present study critically review existing Literatures to suggest a comprehensive list of determinants. The study uses descriptive research design. A sample of 54 literatures focusing on financial innovation and it’s determinants during the time period 1983 to 2018 is included in the study. Further, content analysis and descriptive statistics are used to explore the determinants. The study identified 23 different determinants of financial innovation and classify those under two bases. First, on the basis of influencing power and second on the basis of nature of the determinant. The study found that technological development, competition, firm size and regulations are the major sources of financial innovation from different categories. The study also raised the research agenda to study determinants of financial innovation in Asian context, as there are scanty literature covering Asian economies.