The development of e-business has led to the emergence of contemporary financial innovations that are applicable in the banking industry, but also beyond. Such a business model has proved very useful due to its application. Namely, banks are certainly facilitated by operations due to the reduced amount of documentation, as well as accelerated business actions. On the other hand, users of financial services are given greater availability of the necessary information and easier performance of transactions and other services. The traditional instruments used in banking have been replaced by financial innovations, which continue to be constantly developed to create new products and services that meet the needs of the market / clients. The thesis will present and define financial innovations that are used in modern banking operations. Financial innovations can be divided into financial products, distribution channels and new banking concepts. Financial innovations that will be more closely researched and processed in this thesis are securitization, reverse mortgage and technological banking innovations (mobile banking, Internet banking and payment cards). The practical application of financial innovations will be shown on the examples of PayPal and Google Pay in payment transactions and on the example of Bitcoin and Ethereum when it comes to payments with cryptocurrencies. The research was conducted by means of a survey questionnaire on a sample of 305 respondents, and the thesis aims to show the extent to which financial innovations are used and how they affect modern banking operations.