Application of financial innovations in the banking sector of Serbia


  • Vera Zelenovic University of Novi Sad, Faculty of Economics Subotica, Subotica, Serbia
  • Jelena Zelenović The Research and Development Institute for Artificial Intelligence, Novi Sad Affiliation, Serbia
  • Miloš Đaković University of Novi Sad, Faculty of Economics Subotica, Subotica, Serbia
  • Milica Inđić University of Novi Sad, Faculty of Economics Subotica, Subotica, Serbia



financial innovation, bank, emerging markets, Serbia


Background: Innovations in the domain of banking services in the household sector are primarily related to easier access to a current account and new payment methods, which are practical and simple for the consumer. Financial innovation and financial development are positively related, and their impact grows over time. Constant changes in client demands, and constant pressure to reduce costs and increase efficiency leave banks with no choice but to apply modern technology.
Purpose: This is to point out the importance of financial innovations and their application in the banking market of Serbia. This is all the more so, as the level and growth of real wages in Serbia, as well as the increased inflationary pressure since the time of COVID-19, make these services for bank clients in Serbia much more expensive and inaccessible, due to differences from clients in developed markets.
Methodology/approach: Materials from scientific journals and primary sources were used in the presented research, using the method of content analysis. The presented research was done on the basis of official data available on the National Bank of Serbiа’s website, which cover a time series of five years. An appropriate statistical regression method was applied.
Findings/conclusions: The conducted research showed that financial innovations have adequate application in Serbia as a developing market. The Covid-19 pandemic forced the process of digitization and the adoption of financial innovations to accelerate, and judging by the results of the research, this process is irreversible.
Limitations/future research: Future research could address the value of the transactions made in the same period. Is the increase in the value of financial transactions due to an increase in the number of users or an increase in the volume of transactions? Another question would be whether the inflation factor is noticeable in the increase in the financial value of transactions. Certain limitations may appear in future research, related to a real reduction in wages, or even job loss, and that is to what extent are bank clients ready to continue using existing financial innovations, i.e. buy new innovations, at the expense of this reduction.