This article provides a comprehensive analysis of the innovative services offered by second-tier banks in the Republic of Kazakhstan. The aim of the study is to determine the level of implementation of modern technologies in the banking sector, their effectiveness, and their impact on the financial system. Innovative services include internet and mobile banking, digital payment systems, biometric authentication, services based on artificial intelligence, and the adoption of blockchain technology.  The financial sector is an essential part of the economy, and the stable development and modernization of the banking system directly affect the country's financial security and the quality of services provided to the population. With the advancement of modern technologies, traditional banking services are undergoing changes, giving rise to new innovative products and types of services. In particular, mobile banking, online payment systems, digital banking platforms, AI-based services, and biometric identification systems are being widely implemented.

The article explores the innovation development process of domestic banks, compares it with international experience, and analyzes the advantages and challenges of these services for both clients and the banking system. The results of the study reveal that innovation plays a crucial role in enhancing the competitiveness of second-tier banks. Additionally, the article provides recommendations for further improvement of digital transformation.