Innovation and invention
Innovation and invention generally refer to the development of new strategies or practices that help in product improvement. Innovation is, therefore, interpreted as the integration of new business models that facilitate the improvement of products and services in terms of quality as well as the quantity produced. Innovation also incorporates the use of practical skills and techniques that add value to the final product or service offered to the company. Since innovation is primarily based on value addition, the changes integrated are consumer-oriented. Innovations depend largely on the customers as well as the region, thus the need to analyze the business ecosystem before making decisions on an innovation strategy. This paper analyzes the financial technology (Fintech) as an innovation model that can be introduced in the GCC countries to facilitate improvements as well as show the concept of an ecosystem in relation to innovation and location.
Financial technology is a new innovative business model that addresses the financial market through the provision of customer printed systems that are more efficient and tailored towards improving customer experience. The financial technology model is a service that improves the economy by facilitating economic outlets for individuals with creative business ideas. Currently, countries under the Gulf Cooperation Council have not integrated fintech systems due to inadequacy in resources. Fintech integrates an ecosystem that is based on four primary factors, namely; market access, capital availability, government support and regulation, and financial expertise*. Introduction of the FinTech ecosystem, especially in the UAE, through the introduction of innovation hubs and enterprise development programs that fund creative business models to facilitate entrepreneurship. The provision of mobile applications that link banking and funding services to consumers from the comfort of their devices is a new innovative model that can be implemented in the UAE to support upcoming small businesses and thus improving consumer interaction while also facilitating the growth of the financial technology ecosystem. The ecosystem provides growth opportunities for different sectors such as data analytics, mobile banking, algorithm asset management systems, and payment platforms*.
Technological entrepreneurship covers a broad sector characterized by numerous practices that are determined by both location and ecosystem. Although technology has been fully embraced in the UAE, the region has not expanded in the use of financial technology to facilitate business progress and in customer-oriented mechanisms. The integration of an application service that offers banking, lending, and saving programs from a client’s form opens up a new market that is focused on wealth and job creation*. Since this industry is knowledge-based, it facilitates the transformation of existing financial products through the integration of an efficient and effective improvement strategy. The financial technology ecosystem supports entrepreneurship by involving both the government and contribution from the private sector, thus making it a community-oriented model*. In order to implement this program effectively, it is essential to incorporate best practices from other nations that have integration of technological innovations in the finance industry efficiently.
Mobile banking and borrowing platforms, though encompassed in the FinTech ecosystem, are also influenced by other factors, including the location and culture of consumers. UAE is one of the countries whose largest income emanates from the exploitation of natural resources, thus the need to expand the digital economy. A financial technology ecosystem addresses the transformation of fundamental economic structures aimed at reinforcing competition, resource cultivation, and entrepreneurship in the presented ecosystem*. The introduction of a monetary technological innovation that facilitates economic transactions from the comfort of one’s phone provides a viable innovative structure that covers the desired progress in economics and financial marketing. This model is applicable in the UAE because the highest percentage of the population is young people needing sources of employment*. Therefore the introduction of the mobile finance application facilitates job creation and economic elevation among citizens making it customer-oriented.
The mobile application financial technology is anew area of innovation that has been introduced in the market to facilitate effective banking and financing innovative entrepreneurial ideas. Among the steps involved in this sector is the mobile wallet technology, which is facilitated by banking and mobile provider companies*. The creation of a mobile wallet allows customers to access banking services from a remote location because they offer saving options, withdrawal, loan services, bill payment, and shopping from the application. These are steps that can be integrated into the application introduced where funds offered should be in the form of low interest loan to facilitate entrepreneurship, especially among the youth. This innovation is expected to have a positive impact on society because it helps in the provision of funds for entrepreneurship and supports creative business ideas. The UAE follows Islamic banking and finance policies, and thus the programs developed have to be in line with these policies.
The mobile financial service applications such as the mobile wallet are based on convenience and increased profits. However, the Islamic system prohibits soliciting as well as paying any form of interest, thus the need to align with this rule*. The mobile wallet provides a borrowing platform with fewer restrictions, and that also follows sharia laws, thus its lucrativeness to small business owners. This is a strategy that is expected to facilitate lending, borrowing, and innovation, thus supporting increased entrepreneurial culture in the region*. Another major influence in the community promoted by the adoption of this innovative idea is the promotion of social justice. According to sharia laws on lending and borrowing, both the lender and borrower have to share both losses and benefits from the operation in an equitable manner*. This will, therefore, facilitate economic growth among both the rich and the poor as it supports social justice, thus increased cohesion and development in the area. Lastly, another effect expected from this innovation is growth in the economy and improved living standards in the community. Since the innovative idea makes funds more accessible to small scale businesses and promotes entrepreneurship, it will facilitate growth in the economy by further bridging the gap between the rich and the poor*.
The innovative plan presented above is in line with my chosen career field because it influences financial institutions as well as social development. The financial market is constantly changing due to technological developments that have revolutionized the industry. As an aspiring financial adviser, changes in the entrepreneurial ecosystem, as well as the financial technology ecosystem, greatly influence the market and thus affecting careers in the sector. Innovations that facilitate full automation would be detrimental to the professionals in this sector as it would make their duties obsolete and thus has a major impact in the industry. This innovation would lead to retrenchment of employees and loss of jobs in the financial sector.