Page 34 - Banking Finance August 2025

ARTICLE

Beyond the Vault:

AI's takeover of

Modern Banking

Amit Chauhan
Chief Manager (Faculty)
Union Bank Knowledge Centre
Bengaluru

Artificial Intelligence (AI) plays a vital role in the digital transformation of modern businesses. In
simple terms, AI refers to a computer's ability to perform tasks and make decisions without constant
human instructions. In today's tech-driven world, where everything is becoming smart-from phones
to homes-AI is also making banking smarter.

I n the financial sector today, the definition of banking has cryptocurrencies has opened a new chapter in the banking
world. These technologies challenge traditional concepts of
moved just far beyond brick-and-mortar establishments.
Modern banking is now known for its performance in
benefits to using technology in modern banking, there are
digital and online platforms which has become one of the im- money and transaction processing. While there are many
portant parameters of success. This shift clearly shows how also some challenges. With the increasing use of digital
the sector is responding to rapid technological advancement transactions, cybersecurity concerns have become more
and changing consumer preferences. Technology has brought serious. Additionally, as global economies become more
a major transformation in the way how previously banking connected, banking systems must deal with uncertainties
services has been delivered to the fast and convenient way, and complex regulations.
which has created a more comfortable experience for the
customers who are using the services daily. However, with challenges comes the opportunities. The fu-
ture of the modern banking sector lies in its ability to adapt,
Today's banking is now known as digital banking, where innovate, and meet the evolving needs of consumers and
technology is used to make customer service smoother and businesses. One of the important current development in
more secure. Digital banking is a part of the fintech revolu- banking sector is use of Artificial intelligence in providing
tion, which refers to the use of electronic platforms to per- services to the customers and preventing frauds in day to
form banking tasks. It includes everything from online bank- day transactions.
ing websites to mobile apps. With these, customers can do
everything-from checking their balance to transferring The Role of Artificial Intelligence in Mod-
money internationally-right at their fingertips.
ern Banking
Moreover, the rise of blockchain technology and Artificial Intelligence (AI) plays a vital role in the digital trans-

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