Financial institutions, including central banks, commercial banks, savings banks and others, have an indispensable role in the financial sector. The paper analyzes changes in the banking sector caused by financial innovations. Financial innovations such as FinTech, BigTech, TechFin and blockchain have influenced the development and digitization of the financial sector. FinTech innovations include new technological approaches that enable faster and cheaper transactions, such as P2P (peer-to-peer) lending where individuals can borrow and lend money directly to each other over the Internet, instead of using traditional banks. TechFin and BigTech companies have moved away from their original business models and have expanded their operations and entered the financial sector. Their entry created intense competition and prompted banks to adapt quickly to remain competitive. The business models of banks are strongly influenced by financial innovations, and they had to form their models in order to be as interesting as possible to their clients. The paper examines the adaptations of banks, with special emphasis on examples of banks in the Republic of Croatia, including PBZ, Erste, OTP, Raiffeisen and Zagrebačka banka. The impact of financial innovations on the business models of banks was significant. Banks had to adapt to changes in the environment, offering more and more convenient, transparent and faster financial services to meet the needs of clients.