Comparative Analysis of Banking Financial Innovations in Russia and Kazakhstan

Banking financial innovations are a crucial factor influencing the demand for banking services by both individuals and corporations. However, due to heterogeneity arising from economic and legal differences, banking innovations are implemented variably across countries. The aim of this study is to compare banking financial innovations in Russia and Kazakhstan and to analyze their impact on the net profit of banks in these countries. For this purpose, the author compiled a database including the entire populations of banks in both countries and calculated the innovation index for Kazakhstani banks for the first time. A comparative analysis of banking innovations in the two countries was conducted, both graphically and statistically. Subsequently, a regression analysis was performed, where the dependent variable was the bank’s net profit, and the independent variables included financial indicators and the bank's innovation index. The statistical analysis results suggest that the innovative activity is similar in both countries; however, there is a more active engagement with "digital services" in Kazakhstan. The regression analysis indicates that while the effects of financial indicators on net profit are similar in both countries, the marginal effects of innovation implementation differ between Russia and Kazakhstan.