Product innovation as a way of non-price competition in the banking sector

Abstract:

The article summarizing a vast innovative experience of Russian and foreign banks describes the origin of innovation and estimates product differentiation in the banking sector. The changes in the price competition role and increased sophistication and complexity of non-price control are scrutinized, also the effectiveness of different forms of innovation bank activities are analyzed. Based on the analysis of innovative products of modern banks’ competitiveness and their recommendations for improving the efficiency of innovation activities of commercial banks and shows the actual role of the social-psychological and communication methods of competition in the market.