The thesis will research the impact of financial innovations on the emergence of the global financial crisis of 2007/2008. Namely, the excessive use of financial innovations has contributed to the emergence of the global financial crisis, which led to inflation, volatile interest rates, stronger competition and regulated legislation. The use of financial innovations in different business sectors, their representation in certain parts of the world and their impact on the stability of the banking system and the economy will also be analyzed. Contemporary financial innovations appear in response to the accelerating development of digital technology to which it is necessary to adapt in the financial sector. Accordingly, these are relatively new financial products that modern financial institutions have been using more and more recently to be recognized in the market and to better adapt to the needs of their clients. Such innovations thus occur in response to changes in supply and demand and in the form of tax evasion, with the most prominent being financial derivatives, securitization of placements and reverse mortgages. Financial innovations are also used in various business sectors, primarily in payment operations, financing and insurance, which are closely followed by internet banking, virtual banks, electronic money, cryptocurrencies and others. An example of this is FinTech and InsurTech companies around the world, including the Republic of Croatia. Financial innovations are extremely present in the banking sector because, among other things, they contribute to its stability and economic progress. Despite the fact that financial innovations are considered to have contributed to the crisis, their contemporary potential is great. Also, it is assumed that digital technology will not completely eliminate physical outlets, but will become part of the day-to-day business of the capital market.