Role of Innovations in Increase in Efficiency of Bank Activity

Abstract

Financial innovations should be considered from the point of view of their financial nature and potential uses: banks and non-bank credit organizations. In our opinion, financial innovations, according to their financial nature, are the result of innovation activity, which is based on money and its movement, as well as monetary relations. Banking innovation activity is understood as the degree of innovative banking products diffusion into the daily activities of economic entities in the region. At the same time, we believe that the higher the rate of diffusion of innovations in the banking sector of the region's economy, that is, the faster innovations in the banking services market are adopted, assimilated and distributed, the more stable and competitive the banking system of the region in the long term. Financial innovations should be considered from the point of view of their financial nature and potential uses: banks and non-bank credit organizations. Financial innovations, following their economic nature, are the result of innovation, which is based on money and its movement, as well as monetary relations. The role of credit institutions, and directly banks in the innovation services market, should be assessed highly enough, as banks not only fund innovation activities in the Russian Federation, but also work as active partner in the innovation services market, by means of offering their own innovative products that are in high demand among individuals and businesses. Banks credit products serve as the basis for innovative growth, and provide prospects for the development of the economy, which suggests their active role in stimulating innovative projects of clients. Keywords—innovations, banking services, credit organizations, diffusion, scoring, financial product, resource, customer, risks, credit