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Ekonomika preduzeća
2020, vol. 68, iss. 3-4, pp. 269-279
article language: English
document type: Preliminary Report
published on: 20/05/2020
doi: 10.5937/EKOPRE2004269M
Influence of digitalisation and technological innovations in the financial market on the development of the financial market
aUniversity of Banja Luka, Faculty of Economics, Department of Accounting and Business Finance, Banja Luka, Bosnia and Herzegovina
bManagement Company of the Pension Reserve Fund of Republic of Srpska, Banja Luka, Bosnia and Herzegovina
cKomercijalna banka a.d, Banja Luka, Bosnia and Herzegovina

Abstract

The aim of the paper is to establish a connection between the credit rating of the country and the development of the financial market on one hand, and the level of technology and innovation development across countries, on the other. The first research question is: "What is the connection, if any, between the credit rating of a country and its level of technology and innovation development?". The second research question is: "What is the connection, if any, between financial market development and the level of technology and innovation development?". The methods used in the paper are analysis and synthesis of previous research and theoretical findings, regression analysis, whereas the conclusions were made by applying the induction method. The answers to the research questions may indicate the direction of change in regulation that would have a stimulating or disincentivising effect on the development of innovations and technologies in the financial markets in developing countries. The contribution of the paper is reflected in the opportunities for developing and improving the financial market in developing countries. The research findings reveal a connection between credit rating and technology and innovation levels across countries, and a connection between financial market development and technology and innovation levels across countries. We have offered an answer to the question of whether it is rational for financial intermediaries in developing countries to change their business models and adapt them to the accelerated market changes. In addition, we have highlighted the need to adjust the regulation and reduce operational costs of financial intermediaries in developing countries. Given that we have demonstrated a cause-and-effect relationship between innovation and technological development of financial intermediaries and market development, we also emphasise the need to eliminate the constraints and other limiting factors that affect further digitalisation in the financial sector in the region.

Keywords

digitalisation; innovation; market development; 4th Industrial Revolution

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