| Summary: | “Everybody talks about financial innovation, but (almost) nobody empirically tests
hypotheses about it”
- William Frame & Lawrence White, Academics, 2004
Financial Innovation (FI) has an extensive history of success, providing a broad range of benefits to both the industry itself, and to the wider economy and society (Wyman, 2012). Often seen as the “central force driving the financial system towards greater economic efficiency” (Merton 1997, P4), FI has regularly been cited as critical to the development of the New Economy (Greenspan, 2004). However, with FI standing accused of playing a significantly causal role in the occurrence of the 2007 Financial Crisis (Allen and Yago, 2010) many have been forced to reassess their perceptions of, and attitudes towards, the phenomenon (The Economist, 2010). This dissertation seeks to highlight the determinants of FI and thereby consider the impacts that the current post-crisis environment may have upon it. In doing so, employee-perspective insights into the meaning of FI, and their conceptions of “successful” and “deficient” FI, will also be examined.
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