Current trends of banking innovations

The current stage of the global banking system development takes place in an increasingly competitive environment and unstable financial markets. One of the key factors of bank's successful development is a policy of continuous innovative behavior. Nowadays innovation is a key factor of bankingnstability, competitiveness and sustainable growth. The aim of the article. The main goal of this article is to examine key trends of banking innovations and innovative in Russia. Experience in the development of new banking products, services and technologies in the Russian market is mainly based on international practice. Noteworthy is the fact that Russian banks take over not only the successful practice of new product lines, but also information technology as well as key methodological aspects of bank management and the technological aspects related the business processes. The results of the analysis. Innovative policy in the credit institution must not take place spontaneously. The positive effect of innovation can be achieved only if there is the possibility of managing the innovation process, which is not possible without a clearly highlighted definition and characteristics of banking innovation, which at least would allow distinguishing of innovation and modification. The paper describes the main aspects of the morphology of banking innovation with the detailed classification depended on the variety of attributes from its origin to the direction of action and highlights the major trends of current banking innovation, such as: development of information and cyber technology (and hence the possibility of the emergence of computational complexity and risk prediction models, the development of information security tools, etc.); implementation of customer-oriented model as the best practice; optimization of its own business processes. The article shows a number of real examples of each kind of banking innovation including the innovations in the non-traditional market segments (business insurance, financial leasing, real estate investment, trust operations), innovations of the monetary and financial markets (derivatives market), innovations on traditional segments of capital market (increasing of the efficiency of financial intermediation, certificates of deposit, bonds with floating interest rates, etc.) and tries to explane the sufficient interdependence with the IT-Sector. The paper also considers such products as Siebel CRM, FICO Score, SaS, Diasoft, internet banking, etc. Conclusions and directions of further researches. The classification and the main trends of innovations on Russian banking sector allow to see certain patterns of occurrence of innovation activity and highlights the direction of innovation strategy based on the predominance of a certain types of innovation. Further investigations will examine the diffusion process of different types of banking innovations.