Modern technology and innovations in information technology bring changes for many activities in the world, including the financial system. With the development of the Internet, new trends in banking have emerged that, until a few decades ago, were unknown. The development of technology has helped automate the process, speed up procedures and shorten the time required to perform certain actions. Innovative banking products, such as ATMs, POS devices, cashless payment instruments, the Internet and mobile banking are gaining in importance today, especially among members of Generations Y and Z. The subject of this graduate thesis is the analysis of the application of modern information technology in banking. The aim of this research is to describe the process of emergence of new phenomena in banking, to investigate how modern technology has changed the operations of banks, to present the innovations that have arisen and what their application looks like in practice, analyze of data on the use of banking innovations and describe the usage on the example of the largest three banks in the Republic of Croatia, i.e. Zagrebačka banka d.d., Privredna banka Zagreb d.d. and Erste & Steiermärkische banka d.d. In preparing this thesis, primarily will be used the domestic and foreign literature in the field of information technology and banking, publicly available domestic and foreign statistics on the use of products and services related to innovative technology and data from banks' websites.