Page 131 - "Green Investments and financial technologies: opportunities and challenges for Uzbekistan" International Scientific and Practical Conference

“Yashil investitsiyalar va moliyaviy texnologiyalar: O‘zbekiston uchun imkoniyatlar va muammolar” mavzusida xalqaro
ilmiy-amaliy anjuman materiallari to‘plami (Toshkent, JIDU, 2025-yil 7-may)

Here, transformation is understood as a profound and deliberate shift. In the
case of banks, it means they take up fully cloud-enabled AI, robotic process
automation (RPA), blockchain, and predictive analytics not just as standalone
projects, but as foundational pieces of their integrated enterprise strategies.

The origins of digital banking date back to the development of Automated
Teller Machines (ATMs), telephonic banking, and initial online portals in the latter
parts of the 20th century. However, it was not until the 2010s, which saw a boom in
smartphone technology, internet accessibility, and a heightened need for financial
services that could be accessed remotely, that the pace of digital transformation
picked up substantially. Banking, which is traditionally known for being
exceptionally cautious when it comes to adopting new technologies due to their
highly regulated and risk-averse nature, started becoming receptive to change due to
the surge in demand for effortless and tailored experiences from consumers. The
2008 financial crisis also contributed to this shift by creating a need for more
streamlined and transparent operations—these goals are well aligned with initiatives
aimed at digital transformation.
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Drivers of Digital Change in Banking
Some banking digitalization factors include:

• Changing Customer Expectations: The new-age customers demand 24/7
access, seamless digital experience, and real-time service.
• Technology Advancements: Such swift transformations in AI, IoT, and cloud
computing have made things possible.
• Competitive Pressure: With the proliferation of nimble FinTech startups, the
incumbents have had to move quickly to keep up or risk losing market
positions.
• Cost Efficiency and Profitability: Use of digital tools improves operational
efficiency and reduces human errors and transaction costs.

• Regulatory Push: Some governments and financial regulators have
encouraged pushing the digital transformation to meet compliance, security,
and consumer protection issues.

Combined, these drivers have forced banks to make digital transformation a
strategic imperative rather than a technological upgrade.

Artificial Intelligence (AI) is revolutionizing the banking sector by
automating decision-making, enhancing risk assessment, and enabling smarter

109 Godolja, M., & Domi, L. (2024). Evolution of Artificial Intelligence in the Banking Sector: A Systematic
Literature Review. EMAN Conference Proceedings, 131–145.
This systematic literature review explores the evolution of AI applications in banking, highlighting technological
advancements, implementation challenges, and future directions.

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