Innovation is an oft-used word, and sadly one that is increasingly loosely applied. And yet coming up with new and effective ways of making, saving and moving money, serving and communicating with customers, and managing risk and security are what drives the industry forward.

In launching the Innovation Showcase, we sought to highlight some of the most interesting financial technology developments over the past 12 months. What were we looking for? Newness, uniqueness and impact; clever ways of solving a problem; and projects at the leading edge of new industry trends.

As well as selecting our own highlights from Finextra's comprehensive editorial coverage of all things new in the financial industry, we also called on submissions from vendors, consultants and financial institutions to help us broaden our search for innovation.

Because innovation doesn't stand still, we plan to review the showcase every six months - with the next cut-off for entries in early July. But for now, here is Finextra's pick of industry innovators across nine broad categories:

Authentication and security

• Authentify and HSBC deploy out-of-band authentication system
• Cronto secures Commerzbank customers via mobile camera phones
• Lockstep applies PKI to EMV smartcards to tackle card-not-present fraud
• MBNA and Visa deploy cards with built-in one-time password generator

Collaboration and knowledge management

• ICE uses Jive Software to help bring merged companies together
• Lloyds TSB creates innovation stockmarket
• Scotiabank embraces business focused social networking

Energy efficiency and green IT

• Morgan Stanley to establish tidal-powered data centre
• EDS helps Bank of Queensland manage IT infrastructure carbon footprint
• Bank of America invests in green firm to help cut branch footprint

Financial markets trading

• Fidessa measures changing trading patterns in Europe
• Liquidnet delivers streaming liquidity direct to the buy-side
• London Stock Exchange combines CFD and equity order books
• Fixnetix and Skyler introduce first European consolidated direct feed ticker
• SWX first with European exchange-backed dark pool

Financial messaging and connectivity

• Bravura and eBRC provide seamless bridge between EMX and Vestima+
• Swift's Lite interface wins over low volume prospects

Payments

• NAB, Telstra and Visa merge credit card with mobile phone
• Neovia links e-wallet to virtual and physical MasterCard
• PayPal and OB10 target SMEs for e-invoicing

Retail channel delivery and management

• Barclays embraces cutting edge in flagship concept branch
• Level Four and Ascert help Barclays take a big-bang approach to ATM refresh
• Derdack provides innovative mobile messaging for Al Khaliji Bank
• Fiserv helps Ivobank open new accounts in minutes
• US banks bid for customers on MoneyAisle auction site

Risk management

• Algorithmics gives real-time view of credit and settlement exposure
• BCS brings control to Deutsche Bank's financial accounts
• Fircosoft finds new use for watch-list filtering tool
• RiskVal reacts quickly with tools to help credit markets in turmoil
• Rule Financial simplifies tri-party collateral management
• Quartet innovates in risk and the trade lifecycle

Wholesale channel delivery and management

• SEB launches social network for trade finance professionals
• Actuate uses open source to deliver flexible client reporting for HSBC
  
• eFlow takes a flexible approach to best execution and trade transparency

If you're a member of the Finextra Community, feel free to blog about or comment on the Showcase itself or any of the individual entries.