Management Of Innovative Financial Product Development Under Uncertainty

Increasing global competition makes the lines between financial service sectors blurring. The industry deregulation, the increasing competition, the quickening pace of technological change and rapidly shifting customer needs all are fueling the drive to develop innovative financial products and stay ahead of the competition. But the new products development is at highly failure risk dues to the uncertainty of technology and market. How to increase the probability of success in such development program is an attractive study issue, and the relevant study will be carried out in this paper.Firstly, we will make clear the conception related to innovative financial products, and then analyze the domestic and abroad development practice. To identify the critical success factors is a vital step during the development program. Unless this job is well done, the development strategy can be formulated effectively. We get the data through questionnaires and determine the critical factors with description statistic and factor analysis.Secondly, we try to design the development process, which consists of structure development process, gate, review group and realization group, under considering the property of financial products. This process is based on the former researches and would satisfy the critical success factors, therefore, it makes sense to the development program.Thirdly, we analyze the decision management of development program under uncertainty. We price the options of development\commercialization phase by real option analysis, make mathematic simulation, and put forward decision model for the critical gates at idea screen\ development\ commercialization phase, which is a useful reference to increase the efficiency of deciding under uncertainty.Finally, we apply this development process to credit asset transfer trust financial products development combined with the domestic financial products market, and then make suggestions for improve the efficiency of domestic financial innovative products development from the views of financial supervision, financial market and financial entities.