Concept of Banking Innovation and Their Classification

Abstract

In the framework of this article the concept and role of banking innovations and the author’s judgment of this concept are discussed. We will identify the main reasons for the need for innovations in banks and present the significance of the classification of banking innovations and their brief description. Banking innovations include a product, services, and technology, the introduction of which leads to a qualitative change in banking activity and usually brings profit to the bank. Moreover, it is necessary to classify the banking innovation, as innovative processes should not proceed spontaneously. Through the classification the effectiveness of the implemented change can be calculated more accurately, therefore, it is necessary to create an innovative strategy, which is needed for a specific credit organization, because the effectiveness and competitiveness of a bank’s work in the market depends on the introduction of new banking products, technologies and processes. The introduction of innovations in the banking sector is characterized by a higher customer service quality, which contributes to the improvement and acceleration of the customer service quality and the smooth operation of the bank’s internal work process. Keywords: Banking innovations; classification; Credit organization; Complex banking services;