Adoption of AI in Banking System A Case Study on Indian Banks

Abstract

The banking industry is undergoing ground-breaking reforms, with a focus on the client as the primary driver. Customers that are tech aware and often interact with cutting-edge technologies want banks to provide smooth experiences. In order to meet these expectations, banks have expanded their industrial landscape to encompass retail, IT, and telecom through the use of services like mobile banking, e-banking, and real-time money transfers. While these advancements have allowed customers to access the majority of banking services whenever they choose, they have also cost the banking sector money. The deployment of AI in banking and financial services, however, also has drawbacks, such as concern about data security and privacy, algorithmic bias, and possible job effects. It is crucial to address these issues and make sure that AI is used in an ethical and responsible way as it becomes more commonplace in banking and financial services. This research paper aims to explore the current state of AI in banking and financial services, as well as its potential impact on the industry as the banking and financial services sector has seen major operational changes as a result of the growing usage of artificial intelligence.