Innovations in financial services and the benefits of their implementation
In the context of globalization of the world space for the banking system, the task of forming its innovative potential is becoming increasingly important. However, the crisis state encourages financial and credit institutions to pay increased attention to the development of their financial potential.
The financial potential of a bank is understood as its ability to improve the efficiency of using available financial resources (own or attracted) to finance innovations (banking products, services, technologies) in order to maximally meet consumer requirements for services and to receive profits on this basis.
In order to study the possibility of using the financial potential of a bank to introduce innovations, it is advisable to consider the interpretation of the essence of the notion “banking innovation”, which is associated with the notion of a banking product and banking services, on the interpretation of which there are also certain differences.
Banking service is defined as the activity of a bank, which is aimed at meeting the needs of customers for growth and obtaining additional resources, carrying out settlements, storage and information support.
The concept of “banking service” and “banking operation” are interrelated, since it is as a result of performing a complex of various operations that commercial banks meet the needs of customers for banking services. By “banking service” is meant the final result of a banking institution's activities, which implies the implementation of certain operations and is aimed at meeting the needs of customers.
Analysis of scientific publications allowed us to form such signs of innovative banking product (services):
- novelty of the introduced product, service and technology;
- the presence of a product or service more attractive consumer properties;
- the ability to meet the unmet needs of a potential buyer;
- commercial effectiveness of banking innovations;
- the pleasure of market demand, the use of sophisticated technology to create innovation;
- improving the quality and improvement of an existing product or service.
Banking institutions will work actively to attract people who use debt receipts to conduct financial transactions on their side and offer them their services.
It should be noted that in the conditions of low solvency of consumers of financial services, the innovative potential of a bank should be aimed at introducing socially-oriented services, based on strengthening financial potential as a component of innovation.
Summarizing the above, it should be noted that the formation, use and evaluation of the financial potential of the bank is considered from the position of sufficiency of the financial resources of the bank for the implementation of innovative projects.
Thus, the assessment of the financial innovative potential of the bank is one of the key elements in the overall assessment of the innovative potential of a financial institution, since the results of such analysis enable the bank's management to make informed management decisions on the implementation of innovative projects. In addition, the formation of certain financial resources at the disposal of the bank from different sources or can be obtained by it in the long term, followed by the direction of innovation, is a source of increasing financial potential, which allows for more efficient redistribution of funds for financing innovative activities -oriented banking services.