May 26, 2010
The good financial innovations...
The North Atlantic Financial Crisis has made most people suspicious of financial innovations. In this post I list eleven good financial innovations.
Good innovations are good only if they always meet at least one need of the customer.
A tentative list of eleven good financial innovations follows:
1. Insurance (Life, Health, vehicle, crop,...)
2. ATM (although a techonology tool, it certainly deserve mention)
3. Phone banking
4. Reverse mortgage
5. Inflation indexed bonds
6. carbon credits
7. Preference shares
8. Non voting shares
9. Bank Guarantees
10. Group lending (as practised in microfinance)
11. Shanxi solution for ownership and types of shares to be issued by banks
Pl feel free to add to the list (you may even include innovations more than a century old---like "insurance", Shanxi solution,... in the above list).
Why has the "knowledge age" not delivered good financial innovations?
Is the failure to generate more financial innovation a failure of the "marketing" function in banking and financial services? If yes, who is responsible and how do we correct the problem?
WHAT DO YOU THINK?
Posted by amgodbole at 12:15 PM
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