Smart Banking Services for Automating and Securing Financial Processes: A Hybrid AI and Blockchain Architecture

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Authors

Publication Details

Journal
Zenodo (CERN European Organization for Nuclear Research)
Published
2026-09-11
DOI
https://doi.org/10.5281/zenodo.22711717
Primary Topic
Blockchain Technology Applications and Security
Type
preprint
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preprint

Smart Banking Services for Automating and Securing Financial Processes: A Hybrid AI and Blockchain Architecture

Raul-Anton Jac
Zenodo (CERN European Organization for Nuclear Research)
Blockchain Technology Applications and Security
preprint

Smart Banking Services for Automating and Securing Financial Processes: A Hybrid AI and Blockchain Architecture

Raul-Anton Jac
preprint en

Abstract

The banking sector has undergone a rapid transition from paper-based, manual operations to fully digitalized financial services. However, this digitalization introduces a significant "trust gap" by removing the human element from customer onboarding and document verification, leading to operational inefficiencies and increased vulnerability to sophisticated fraud attempts. This paper proposes a comprehensive "Smart Banking Ecosystem" designed to bridge the gap between the high-speed user experience of modern neobanks and the rigorous on-premise security of traditional financial institutions. The proposed solution relies on a microservices-oriented architecture that physically and logically separates public-facing components from administrative tools. At its core, the system integrates a Dual-Validation algorithm: an Artificial Intelligence (AI) layer acts as an intelligent validator for automated Know Your Customer (KYC) identity checks and credit scoring, while a private, permissioned blockchain acts as an immutable anchor for digital contracts. Extensive performance testing indicates that the system can perform complex biometric processing and text extraction in an average of 2.35 seconds, execute machine learning credit predictions in 112 milliseconds, and anchor cryptographic hashes in 34 milliseconds. The results demonstrate that integrating AI for automated decision-making and blockchain for cryptographic data immutability successfully addresses challenges related to transparency, verification, and data integrity in digital banking platforms.

Zenodo (CERN European Organization for Nuclear Research)
Peace, Justice and strong institutions
Blockchain Technology Applications and Security
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