From Brick-and-Mortar to Digital-First Banking: Assessing the Impact of Generative AI on Legacy Banks' Service Paradigm Shift

The banking industry is transitioning from traditional brick-and-mortar models to a digital-first approach, driven by advancements in generative AI. This transformation enhances customer experience, streamlines operations, and improves decision-making. This paper examines the impact of generative AI on legacy banks, focusing on its applications in customer service, process automation, and personalized financial services. Additionally, it explores the challenges and opportunities of this transition, emphasizing the need to balance digital and physical channels while fostering a digital culture to drive innovation and agility. The findings suggest that generative AI is essential for improving operational efficiency and customer satisfaction, positioning legacy banks for sustainable growth and competitiveness in the digital era.