Artificial Intelligence in Modern Banking: Revolutionizing Financial Services, Risk Management and Customer Experience

Artificial Intelligence (AI) is transforming the banking and financial services industry by streamlining operations, enhancing decision-making, and improving customer engagement. This research explores the integration of AI-driven technologies—such as machine learning, natural language processing, and predictive analytics—into key banking functions, including credit risk assessment, fraud detection, customer service automation, and financial forecasting. By processing large volumes of structured and unstructured data in real time, AI systems enable financial institutions to make faster and more informed decisions while reducing operational inefficiencies. The study also highlights the increasing use of AI in regulatory technology (RegTech), where automated compliance checks, anomaly detection, and document analysis have significantly reduced human error and enhanced transparency. In addition, AI-powered personalization engines and chat bots are reshaping customer experiences, offering tailored financial advice, and improving service availability across digital channels. However, the adoption of AI also raises challenges related to data privacy, algorithmic bias, and explain ability, which are critical in a highly regulated environment. Through case studies and a review of recent advancements, this research provides a framework for responsible AI implementation in banking—balancing innovation with ethical considerations and regulatory compliance. The study concludes that AI will continue to be a driving force in building more efficient, inclusive, and customer-focused financial systems.

Authors

Publication Details

Journal
World Journal of Advanced Engineering Technology and Sciences
Published
2025-08-21
DOI
https://doi.org/10.30574/wjaets.2025.16.2.1289
Primary Topic
Insurance and Financial Risk Management
Type
article
Field-Weighted Citation Impact
0.00
Controls
|||
ALL TIME
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
article

Artificial Intelligence in Modern Banking: Revolutionizing Financial Services, Risk Management and Customer Experience

M. Sarkar, S.H. Taufiq El Rahman
World Journal of Advanced Engineering Technology and Sciences
Insurance and Financial Risk Management
article

Artificial Intelligence in Modern Banking: Revolutionizing Financial Services, Risk Management and Customer Experience

M. Sarkar, S.H. Taufiq El Rahman
article en

Abstract

Artificial Intelligence (AI) is transforming the banking and financial services industry by streamlining operations, enhancing decision-making, and improving customer engagement. This research explores the integration of AI-driven technologies—such as machine learning, natural language processing, and predictive analytics—into key banking functions, including credit risk assessment, fraud detection, customer service automation, and financial forecasting. By processing large volumes of structured and unstructured data in real time, AI systems enable financial institutions to make faster and more informed decisions while reducing operational inefficiencies. The study also highlights the increasing use of AI in regulatory technology (RegTech), where automated compliance checks, anomaly detection, and document analysis have significantly reduced human error and enhanced transparency. In addition, AI-powered personalization engines and chat bots are reshaping customer experiences, offering tailored financial advice, and improving service availability across digital channels. However, the adoption of AI also raises challenges related to data privacy, algorithmic bias, and explain ability, which are critical in a highly regulated environment. Through case studies and a review of recent advancements, this research provides a framework for responsible AI implementation in banking—balancing innovation with ethical considerations and regulatory compliance. The study concludes that AI will continue to be a driving force in building more efficient, inclusive, and customer-focused financial systems.

World Journal of Advanced Engineering Technology and SciencesVol. 16(2)
Openalex Percentile: Top 71%
Insurance and Financial Risk Management
AI Navigator

Ask Laika to Summarize, Analyze, and Connect papers live on the map.

Summarize Papers & Methodologies

Extract key findings, datasets, and comparative methods across publications.

Benchmark Rankings & Visual Analytics

Rank top research institutions, authors, funders, topics, and journals by Field-Weighted Citation Impact (FWCI) and paper volume with instant charts.

Connect Distant Disciplines

Bridge topological clusters on the map to find hidden collaborative intersections.