THE ORIGINS OF FINANCIAL INNOVATION: EXPLANATORY FACTORS
The question of financial innovation is always of particular importance thanks to of its implication in the stability of contemporary economic and financial systems. Since its emergence, this phenomenon has aroused the interest of several authors. Numerous theoretical works have fed an abundant literature on the functions of financial innovation, its nature, its forms, and its characteristics. In addition to these research elements, the question of the origins of financial innovation has also aroused the interest of several researchers in finance. During our research, we noted a diversity of theoretical approaches and a lack of consensus among its adherents. Based on the analysis of these authors' approaches, we have been able to realize the existence of several factors at the origin of financial innovation. Given that several new financial products have been put in place to respond either to the economic and financial constraints encountered, or in response to the growing demand of investors, we have grouped these approaches into two lines of thought. The first focuses on explaining the supply side of innovation and the second on the demand side of agents as the essential driver of financial innovation. Thus, our article has a double objective: to compile the different theoretical approaches explaining the causes behind the emergence of financial innovation and to categorize them according to their origin, in the first place, and in the second, to propose, on our part, other key factors that appear to be at the origin of this phenomenon.
Financial Innovation, Regulation, Competition, Risks, Characteristics, Beliefs and Values.