IMPROVING THE INNOVATION ACTIVITY OF COMMERCIAL BANKS IN IMPROVING BANKING SERVICES

Аннотация

This article, written based on the results of my research, is devoted to the issues of improving the management of innovative activities of commercial banks of Uzbekistan. The study analyzes the theoretical foundations of banking innovations, foreign experience, the practice of local banks, and develops proposals and recommendations for the development of innovative activities. The results of the study show that commercial banks of Uzbekistan have been paying special attention to the intensive development of innovative activities in recent years. Keywords: banking innovations, digital banking, innovation management, digital technologies, financing, human resources, security, open banking, artificial intelligence. ENTRANCE Innovation is essential for banks to increase their competitiveness, provide new products and services, and meet customer needs. At the same time, effective management of innovation activities plays a crucial role in ensuring the financial stability of banks and supporting their long-term development. In the context of modernization and diversification of the economy of the Republic of Uzbekistan, improving the management of innovative activities of commercial banks is of particular relevance. In our country, large-scale measures are being implemented to reform and develop the banking system. In particular, according to Goal 50 of the Decree of the President of the Republic of Uzbekistan on the Strategy "Uzbekistan 2030", the tasks of accelerating reforms in the banking system, increasing the size of the banking services market and developing 378 “JOURNAL OF SCIENCE-INNOVATIVE RESEARCH IN UZBEKISTAN” JURNALI VOLUME 3, ISSUE 01, 2025. YANUARY ResearchBib Impact Factor: 9.654/2024 ISSN 2992-8869 competition in the sector are set. At the same time, currently, a number of problems remain in the banking system of Uzbekistan in terms of introducing modern methods and tools for managing innovative activities, strengthening interbank competition, developing new banking products and services and implementing them in practice. To eliminate these problems, it is necessary to improve the management of innovative activities of commercial banks, study advanced foreign experience and adapt them to the national banking system. Many foreign and domestic scientists have conducted research on the topic of managing the innovative activities of commercial banks. These studies cover the essence of innovative activities, the theoretical foundations of its management, and the practical aspects of introducing innovations in the banking system. There are different approaches to the essence and content of the concept of innovative activity. Schumpeter (2020) defines innovation as the main driving force of economic growth. According to him, innovation brings about structural changes in the economy by introducing new products, production methods, markets, sources of raw materials and organizational structures. Furthermore, Drucker (2019) considers innovation as an integral part of entrepreneurship. He defines innovation activity as a process aimed at directing resources to create new opportunities. Drucker also emphasizes the need for a systematic approach to innovation management. There are specific features of innovative activity in the banking sector. Mishkin (2020) defines banking innovation as the introduction of new financial instruments, technologies, and institutions. He emphasizes the importance of innovation in improving the quality of banking services, reducing costs, and creating new sources of income 1. Mention (2021) also examines banking innovation in the context of digital transformation in the financial services industry. He argues that digital technologies are fundamentally changing the traditional banking business and creating a need to introduce new innovative solutions. A number of studies have also been conducted in Uzbekistan on the development of innovations in the banking system. Jumaev (2022) analyzed the trends in the development of innovation processes in the banking system of 379 “JOURNAL OF SCIENCE-INNOVATIVE RESEARCH IN UZBEKISTAN” JURNALI VOLUME 3, ISSUE 01, 2025. YANUARY ResearchBib Impact Factor: 9.654/2024 ISSN 2992-8869 Uzbekistan. He emphasizes the need to improve the legal framework for the implementation of banking innovations in our country, expand the use of digital technologies, and increase the innovative potential of banking specialists. Abdullaeva (2023) studied the current issues of financing the innovative activities of commercial banks. In her opinion, the introduction of new mechanisms for financing innovative projects, including the use of venture financing and crowdfunding, is of great importance in stimulating banking innovations. ANALYSIS AND RESULTS Today, the banking system of our country is in a stage of rapid development, and banks are striving to increase the efficiency of their activities through the introduction of digital technologies, financial innovations,