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Innovative financial instruments act as a driving force for economic development. In the modern economy, the role of innovative financial instruments has grown significantly. With the application of financial innovations, it is almost possible to obtain high profits, minimize costs, develop new markets, and create competitive products with a high degree of novelty. So, in the market economy, innovative financial instruments are an effective means of competitive struggle, as they lead to the creation of new needs, a reduction in the cost of products, an inflow of investments, and an increase in the image of the manufacturer of new products, to the attraction of new customers. This article aims to define the essence of innovative financial instruments, drawing on an analysis of existing definitions of the concept of 'financial innovation' in contemporary Ukrainian scientific literature. Building on the reviewed material, this article presents an analysis of the types of innovative financial instruments put forth by Ukrainian scientists. L. B. Kolinets offers a classification that includes innovations related to equity instruments and debt instruments. Another group of scientists, S. V. Radinsky and O. D. Dyachun, identify financing instruments, hedging instruments, and special financial services as innovative financial instruments. The article also references other types of innovative financial instruments explored in the works of contemporary Ukrainian scientists. We analyzed statistical data on the development of derivatives and fintech and implemented business projects in Ukraine with the help of the «Big Idea». The expediency of using innovative financial instruments has been determined. The main advantages of using innovative financial instruments are that they accelerate business development, expand access to capital, and support the development of new products and services. In conclusion, ways were suggested to contribute to developing innovative financial instruments. Keywords: financial instruments, financial innovations, derivatives, crowdfunding platforms, cryptocurrency, blockchain technologies, fintech, payment system.
Kondrat et al. (Wed,) studied this question.