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Positive and Negative Innovations on AI economic Perspectives in Modern Banking/Finance

In: Proceedings of the ENTRENOVA - ENTerprise REsearch InNOVAtion Conference, Hybrid Conference, Dubrovnik, Croatia, 5-7 September, 2024

Author

Listed:
  • Wójcik-Czerniawska, Agnieszka
  • Grzymala, Zbigniew

Abstract

The study reviews key findings on the impact of banking growth and innovation on economic development, particularly focusing on Asian economies where the financial sector is less developed. Using secondary data, it expands the scope of analysis to more specific elements of development. While banking innovation's theoretical effects are vast, empirical findings are often less clear, as they focus on specific businesses and channels. The study highlights the importance of understanding the current state of the financial sector when assessing its role in growth. Artificial intelligence (AI) and Big Data are increasingly used in economic forecasting, offering predictive and decision-making capabilities. The research concludes that greater economic freedom, especially in cross-border financial markets, does not always benefit companies. International financial freedom can hinder development, while domestic financial freedom may support it. As weaker banks struggle to finance startups, the study suggests that financial freedom may yield varied results for economic and business growth. In regions with underdeveloped financial markets, like Asia, banks play a crucial role in fostering growth. The article emphasizes the importance of financial technology in shaping these outcomes.

Suggested Citation

  • Wójcik-Czerniawska, Agnieszka & Grzymala, Zbigniew, 2025. "Positive and Negative Innovations on AI economic Perspectives in Modern Banking/Finance," Proceedings of the ENTRENOVA - ENTerprise REsearch InNOVAtion Conference (2024), Hybrid Conference, Dubrovnik, Croatia, in: Proceedings of the ENTRENOVA - ENTerprise REsearch InNOVAtion Conference, Hybrid Conference, Dubrovnik, Croatia, 5-7 September, 2024, pages 467-480, IRENET - Society for Advancing Innovation and Research in Economy, Zagreb.
    • Handle: RePEc:zbw:entr24:317979
    DOI: 10.54820/entrenova-2024-00036
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Positive and negative innovations; banking business; financial development; modern banking advancement;
    All these keywords.

    JEL classification:

    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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