The role of education in enhancing innovation in banks

The modern banking sector faces dynamic changes driven by globalization, technological advancements, and the increasing demands of financial service users. In this context, education plays a pivotal role in fostering innovation, which represents a critical prerequisite for achieving competitive advantage. Education enables employees to adopt new work methods, effectively solve business challenges, and actively participate in the development of new products and services. This paper examines the impact of education on innovation through parameters such as the application of contemporary work methods, recognition and reward for innovative solutions, and the promotion of employees' professional development. The research was conducted on a sample of 667 employees from four banks with branches in Belgrade, employing descriptive statistics, contingency tables, and the chi-square test. The primary hypothesis posits that education positively influences the innovativeness and competitiveness of banking institutions, while the auxiliary hypothesis highlights the impact of employees' socio-economic characteristics on innovative activities. The findings indicate that modern training programs and continuous professional development significantly contribute to the adoption and implementation of innovations, thereby enhancing banks' competitiveness through the continuous improvement of products and services. This study emphasizes the importance of integrating education and innovation into the development strategies of the banking sector.