Author(s): Thompson Aneyire Kubaje, Abdul-Razak Borawa Haruna, Francis Tagoe, Desmond Aboagye
Financial Innovation and Financial Technology (FinTech) have transformed corporate finance, revolutionizing traditional financial processes and services. The purpose of this paper is to provide a comprehensive analysis of the interplay between financial innovation and FinTech within the corporate finance domain. Through a systematic review of literature and empirical studies, we trace the historical evolution of financial innovations, from early joint-stock companies to modern electronic trading systems and complex financial instruments. The study examines the scope and drivers of the FinTech revolution, evaluating its disruptive impact on traditional banking models. The study analyses key FinTech solutions in corporate finance, including digital payment systems, robo-advisors, blockchain technology, and peer-to-peer lending platforms. The benefits of these innovations for corporations are assessed, encompassing enhanced efficiency, expanded access to capital, and improved risk management. However, we also critically examine the challenges and criticisms associated with these developments, such as regulatory concerns, security and privacy issues, and potential market disruptions. The paper further explores future trends and emerging technologies, including decentralised finance, artificial intelligence in financial processes, quantum computing, and advanced biometrics. We conclude by offering evidence-based recommendations for businesses, regulators, and consumers to navigate this evolving landscape effectively. The originality of this paper stems from its novel assessment of the holistic understanding of how financial innovation and FinTech are reshaping corporate finance and how Financial Innovation and Financial Technology (FinTech) have transformed corporate finance, revolutionizing traditional financial processes and services and the interplay between financial innovation and FinTech within the corporate finance domain