Digital Transformation in the Financial Sector: AI “a blessing in disguise

Abstract

The primary aim of the present research is to provide a brief literature review (SLR) onAI in banking sector, and extract evidence about the opportunities and challenges concerning the use of Artificial Intelligence (AI) in the banking sector. The present work, however focuses on a traditional approach of explaining the concept of AI by putting forward the objectives, concepts, challenges and history etc. The introduction of AI in banking sector has definitely a blessing in disguise as it provides opportunities like personalized services, smart wallets, decision-making and problem-solving, customer satisfaction and loyalty, process automation (especially targeting repetitive tasks), transactional security and cybersecurity improvements, and promotion of digital financial inclusionetc. Although it is very evident that every technological change comes with certain challenges as well, it is the responsibility of strategy formulators in a banking sector to overcome the existing and prospect AI challenges. However, the present existing studyis descriptive in nature and based on secondary sources of data. The present work provides a detail conceptual background of AI in banking sector, and its use in making banking services more efficient. The author suggests empirical researchon the present idea to increase understanding of the opportunities and difficulties presented byAI in the banking sector.