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Financial innovations from the past have changed our lives dramatically today. They were initially created in response to inflation, high interest rates, and regulations, but ended up making the lives of financial customers today a lot less hectic. This paper will highlight innovations, reasons behind the innovations and improvements. The method of research used required collections of previously published information from books, websites, online databases and my own knowledge as an online banker of many years. The research resulted in the finding of a vast amount of financial principles that have efficiently improved the financial industry and today’s society. Society members, including myself and businesses worldwide have already benefited from the great innovations of the past.
Financial Innovations and the Financial Industry
We, as a people, tend to think that financial institutions are here to serve us. We use financial institutions to cash our checks and hold our savings in which we are expected to earn interest. We also use banks to pay for services we use by writing checks that are issued to us free of charge, and by using our credit and debit cards which cost us nothing if used correctly and paid in full monthly. But banks are in business to make money just like any other business. In order for banks to remain in business and to increase profits, new products and services must be implemented which benefit the needs of financial institutions, the customer, and the economy. This is how financial innovations were introduced to the industry.
Demand, Supply and Regulation
Changes in the financial envi ...