1.0 Introduction''Financial innovation can be defined as positive changes in financial intermediation or the financial system: in financial institutions (commercial banks, insurance companies, financial (investment and pension and investment banks) and in financial institutions. markets (stock market, debt instruments market and derivatives market). "I think it is essential to have innovation in the financial services sector for financial companies to continue to move forward, to continue to improve their services and to increase competition between companies. In this article , I will mainly talk about banks and their innovations and leave aside all other companies in the financial services sector to delve deeper into the subject. Over the last 50 years, there have been some great innovations in the financial services sector, such. than Internet banking, ATMs and debit cards These great innovations were much simpler and took less time for the bank and the customers. We can say that these changes were positive changes in the. financial system that fit the definition given above Traditionally, a bank was founded so that people could put their money away in a safe place and for those who needed a place to get a loan. all types of purposes. Nowadays a bank offers many more services than it traditionally did, which I think is the result of the increase in knowledge and especially the result of technology. Modern technologies like the Internet, debit cards, smartphones and computers have completely changed the way banks could provide their services. These modern technologies have enabled banks to innovate their traditional banking method and come up with effective and efficient tools to improve service and save money at the same time. Here are some examples: check... middle of paper ......become a community in which different financial service providers and customers come together to help the community manage its own finances. The community will have an online platform where they can connect, collaborate, participate and help each other and in which the customer will be very self-service. The online platform should also be a knowledge hub for the community. List of source references http://baselinescenario.com/2009/04/18/financial-innovation-for-beginners/ http://www.investopedia.com/ terms /s/securitization.asp http://www.brighthub.com/money/personal-finance/articles/42073.aspx http://nl.wikipedia.org/wiki/Geschiedenis_van_het_internet http://www.buzzle.com / articles/history-of-internet-banking.html http://nl.wikipedia.org/wiki/Geschiedenis_van_het_internet http://www.praxis.ee/fileadmin/tarmo/Toimetised/toimetised_06_2003.pdf