Digital technology has helped to transform the financial services industry, altering how we save, borrow, invest, and purchase goods.

Also, large banks contantly to invest in mobile banking, FinTech companies such as Stripe help small businesses with online payments, and investment broker Robinhood wants to democratise investing and finance. These innovations have expanded the pool of financial providers available to consumers, borrowers, and businesses.

In the following section, we will explain some content about financial innovation in the emerging market for students to better understand the concept and make wise decisions when choosing a dissertation topic. Also, students can Pay For Dissertation to get good grades.

Understanding Financial Innovation

Financial innovation is a broad term that can be classified into specific categories based on changes to various aspects of the financial system. While the list below is not comprehensive, major financial innovations include equity capital raising, remittances, and mobile banking.

Investment Crowdfunding

Investment crowdfunding has begun to open the process of raising equity capital. While investing in early and growth-stage companies was previously limited to a select few (mainly institutional investors), new infrastructure and regulations have enabled individual retail investors to invest in projects they are passionate about and have other connections to for a small sum. Individuals receive shares in the new company proportional to the amount they have invested.

FundersClub and SeedInvest are two popular equity crowdfunding platforms. Furthermore, micro-lending platforms like LendingClub and Prosper offer debt financing similar to crowdfunding. Individuals in this asset class become creditors and receive regular interest payments until the loan is fully repaid. Furthermore, P2P lending marketplaces allow both individuals and businesses to purchase whole or partial loans.

Remittances

Remittances are another area where financial innovation is transforming. Remittances are funds sent back to the country of origin by wire, mail, or online transfer. Given the volume of these transfers globally, remittances are economically significant for many of the countries that receive them.

In the early 2000s, the World Bank created a database that allowed people to compare the prices of various transfer services. The Gates Foundation began tracking remittances in 2011. Western Union and Moneygram once dominated remittances, but in recent years, startups like Transferwise and Wave have competed with lower-cost apps.

Mobile Banking

Finally, mobile banking has introduced significant innovations for retail customers. Today, many banks, such as T.D. Bank, provides comprehensive apps that allow you to deposit checks, pay for merchandise, transfer money to a friend, or find an ATM instantly. It is still essential for customers to establish a secure connection before logging into a mobile banking app to avoid their personal information being compromised.

Innovative financial instruments:

Financial instruments can be considered both assets and bundles of capital for trading purposes. However, they are classified as tradable assets. The vast majority of financial instruments improve the rapid and efficient transfer of capital among the world's investors. This category includes assets such as cash, a contractual right to deliver or receive cash or another type of financial instrument, and evidence of ownership in an entity. The term "financial instrument" refers to a physical or digital document that represents a legally binding contract with monetary value. 

Equity-based financial instruments are used to represent asset ownership. Debt-based financial instruments are similar to loans that an investor makes to the asset's owner to purchase the asset. The third and most distinct category of financial instrument is form up of foreign exchange instruments. Each type of instrument has many subcategories, such as preferred share equity and common share equity.

Types of financial instruments: 

Financial instruments fall into two categories: cash instruments and derivative instruments.

Cash Instruments: 

Markets directly influence and find the value of cash instruments. These can be easily transferable securities, such as stocks or bonds.

Other types of cash instruments include pre-arranged deposits and loans between borrowers and lenders.

Types of financial instruments: 

Derivative instruments are based on their underlying components, such as assets, interest rates, or indices, which determine their value and characteristics.

The value of an equity options contract, for example, is determined by the underlying stock. This converts the equity options contract into a derivative. The option grants the right, but not the obligation, to buy or sell the stock on a specific date and at a predetermined price. The value of an option fluctuates in line with the price of the underlying stock, though not always by the same percentage. However, this correlation is not always valid.

In the next section, you will explore the list of finance dissertation topics for the MBA dissertation Online!

List of Advanced Finance Dissertation Topics

• Impact of remote work trends on financial market operations and efficiency.
• Market response to central bank interventions during and after the pandemic.
• The Effectiveness of Microfinance in Promoting Rural Development: Evidence from a Specific Region.
• Analysing the Relationship between Microfinance and Entrepreneurial Success: A Longitudinal Study.
• Customer Adoption of Internet Banking: An Empirical Study on Factors Influencing Usage.
• Enhancing Security in Internet Banking: Exploring Biometric Authentication Technologies.
• The Impact of Mobile Banking Applications on Customer Engagement and Satisfaction.
• Evaluating the Efficiency and Effectiveness of Internet Banking Services in Emerging Markets.
• The Impact of Microfinance on Poverty Alleviation: A Comparative Study of Different Models.
• Exploring the Role of Microfinance in Empowering Women Entrepreneurs.
• Assessing the Financial Sustainability of Microfinance Institutions in Developing Countries.
• The Role of Social Media in Shaping Customer Perception and Adoption of Internet Banking.
• Fraud and Identity Theft are Accomplished via Internet Banking.
• Credit rating agencies and their influence on bond market dynamics.
• Market reactions to geopolitical events: case studies from the last decade.
• Examining the impact of trade wars on global financial markets.
• Evaluating the performance persistence of mutual funds in different market conditions.
• Role of institutional investors in corporate governance and market stability.
• Technological innovations and disruptions in financial markets.

Conclusion:

Hope you understand the foundation of innovative financial instruments in emerging markets. Basically, financial instruments can be viewed as both assets and bundles of capital for trading purposes. However, they are classified as tradable assets. The vast majority of financial instruments help the rapid and effective transfer of capital among the world's investors. In addition, the list of dissertation topics provided above will assist you in selecting the best topic!