Innovation and competitiveness are closely related concepts. In order for companies to be able to compete, they must listen to the needs and wishes of customers and based on that, bring new and improved products and services to the market. This paper analyzes innovation and competitiveness on the example of Zagrebačka banka d.d. and Privredna banka Zagreb d.d. By analyzing the innovations of Zagrebačka banka d.d. it was found that the bank is constantly reviewing the needs of customers and accordingly upgrading its services. Zagrebačka banka d.d. has introduced contactless cash withrawals at ATMs to make the process faster and safer for customers. It was also the first bank in 2020 to introduce the withdrawal of euro banknotes at its ATMs. To support micro and small entrepreneurs during the COVID-19 crisis, Zagrebačka banka d.d. has launched the project #prviput to promote the undiscovered beauties of Republic of Croatia. On the other hand, Privredna banka Zagreb d.d. has an online platform through which it contains various functionalities. With the help of the analysis of the financial statements of Zagrebačka banka d.d., it was determined that Zagrebačka banka d.d. is market leader with its share of assets of 27 precent, has large number of innovations that are continuously introduced to the market and for many years is a leader in the banking marker. On the other hand, in 2020 Privredna banka Zagreb d.d. had a 21 precent stake in the assets, making it the biggest competitor to Zagrebačka banka d.d. As the two largest and leading banks on the Croatian banking market, Zagrebačka banka d.d. and Privredna banka Zagreb d.d. they have received various awards and recognitions for their work since their existence.