The rapid advancement of technologies has fundamentally transformed the financial landscape, giving rise to innovative financial instruments, platforms, and processes that challenge traditional paradigms. This paper explores the intersection of financial innovation and strategic management within the context of the digital economy. Drawing on case studies from fintech firms, digital banking, and tech-driven investment platforms, the research examines how strategic management frameworks evolving to accommodate disruption, enhance competitiveness, and drive value creation. It highlights the role of adaptive leadership, agile financial planning, and digital integration in aligning innovation with long-term corporate strategy. The findings underscore that successful firms are those that not only adopt digital tools but embed financial innovation into their strategic vision, governance structures, and organizational culture. This synthesis provides actionable insights for executives, policymakers, and researchers seeking to understand and harness the synergies between finance and management in a digital-first world.

Financial innovation in the digital economy is a force that both empowers and disrupts. Strategic management perspectives help explain why some firms turn fintech to competitive advantage while others lose ground. Firms that intentionally treat financial innovation as a strategic capability — investing in modular architectures, data governance, dynamic capabilities, and partnership governance — will be better positioned to create and capture value. Policymakers must balance enabling innovation with protecting consumers and systemic stability. The interplay among technology, strategy, and institutions will continue to be fertile ground for research and practice.

Schumpeter, J. A. — Innovation theory and creative destruction (classical foundation of innovation economics). Christensen, C. M. — On disruptive innovation and incumbent responses. Teece, D. J. — Dynamic capabilities and strategic management. Porter, M. E. — Competitive strategy and value chain analysis. Zott, C. & Amit, R. — Business model innovation and value creation in digital markets. Brynjolfsson, E. & McAfee, A. — The Second Machine Age / digital economy impacts on business. Papers and reports on fintech, open banking, and platforms from major consultancies and central banks (e.g., BIS, IMF, World Bank) for regulatory and industry-specific evidence. Recent literature on DeFi and blockchain governance (interdisciplinary).

© 2025 International Journal of Engineering and Techniques (IJET).

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