How financial innovation has impacted the perception of people in the Maltese banking industry?

Abstract

This research discusses the different factors and tools found in the banking industry, together with their consequences. It particularly focuses on all the aspects, advantages and drawbacks related to financial innovation and how they affect the banking sector. This study takes into consideration the impacts, whether positive or negative, which financial innovation leaves on people’s perception of the banking industry (i.e. how financial innovation affects people’s attitudes, reactions and behaviours). In performing this task, a simple questionnaire based on the area of banking and finance was used. It was made up of a maximum of 15 multiple-choice questions. Different opinions and feedback from all the questionnaire participants were obtained, thus enhancing people’s beliefs concerning financial innovation, as well as their familiarity with the banking industry. The achieved results show that the majority of participants were engaged within the banking industry, meaning that most of them normally make use of banking services. Furthermore, their responses to the banking questions seemed to match with the facts found in existing research. This shows that the majority of them were familiar enough with banking services. However, although many participants indicated that they were in favour of financial innovation, not all of them share the same perspective. For some, financial innovation seems to act in a particular way, while for others, it seems to act in a different way, meaning that some believe that financial innovation always works positively, while others also believe that financial innovation may sometimes act negatively. Following the research method, it seems easy enough in solving the particular case about financial innovation. Evidence shows that due to all the improvements and advantages related to financial innovation, most of its users seem to benefit in various ways. Let alone its main drawbacks, financial innovation always proves to be a helpful indicator of wealth in banking industries, always trying its best to satisfy the wants or needs of clients and shareholders.