Abstract: “Financial innovation has transformed and restructured financial services and its impact on economies is becoming increasingly notable. The World Economic Forum (2012) postulated that the advancement in financial innovation is a driving force for broad economic growth. Despite this acknowledgement, the effect of financial innovation on economic growth in developing countries such as Zimbabwe has received little attention. The objective of the study is to explore how innovations that lie within the local financial system improve the flow of funds into the economic system for the benefit of other sectors of the economy. The ultimate goal is to evaluate the impact of financial innovation on economic growth. The study further looks at the causal relationship between financial innovation and economic growth. This was achieved by assessing the impact of increasing financial innovations on financial sector development. The study uses Zimbabwe as a case study. The motivation of the study emanat”

Keywords: FINANCIAL, INNOVATION,ECONOMIC, GROWTH, ZIMBABWE1