Banking Innovations in Providing of the Banks' Competitiveness

The purpose of the article is to generalize the theoretical foundations and determine the role of banking innovations in the system of ensuring the banks' competitiveness, develop a typology of banking innovations from the standpoint of the theory of competition and implement its concretization, based on the innovative developments of foreign banks in 2018-2019. The importance of banking innovations as the factor of banks' competitiveness was substantiated. The approaches to the banking innovations classification were generalized. The typology of banking innovations was developed from the perspective of a theory of competition with the definition of such classification features as: according to the level of orientation of the competitive position; by the degree of ensuring a competitive position; according to the degree of competitive advantage; in terms of focus on the development of competitive potential. The proposed typology of banking innovations was concretized in the basis of the innovative developments of foreign banks in 2018-2019. As the comparative analysis shows, along with innovative developments in traditional categories (radical financial innovations, innovative products and services, innovations in customer service channels, innovations with the effect of social and social impact, innovations for improving internal processes) the FinTech and RegTech innovation development, human capital management, business models and marketing, as well as innovative accelerators or incubators are gaining relevance. It was proved that the achievement of competitive advantages and the strengthening of competitive positions in the banking services market is facilitated by digital convergence, which allows banks to introduce innovations based on digital technologies, platform and ecosystem approaches. At the same time, banks are facing a problem of disintermediation, namely, competitive pressure from high-tech FinTech companies, which are much more flexible and quickly respond to innovative consumer needs without experiencing regulatory pressure and restrictions compared to traditional financial intermediaries. In this connection, banks should develop competitive strategies based on building effective cooperation with FinTech companies to obtain a synergistic effect for developing competitive potential in the banking services market.