International Journal of Science, Engineering and TechnologyAuthors: Research Scholar Megha Joshi
Abstract: A digital transformation is the up-gradation of prevailing progressions or primer of new ways of resonant out professional activities using digital technologies that augment a customer’s experience and leads to higher conversion rates for the banks. The pandemic has completely reformed the way people accomplish things in their life, right from shopping & working to banking specifically. Many evolutionary vicissitudes are anticipated to come in the future of digital banking. Some consumers will expect completely sovereign banking progressions due to deficiency of time and acquaintance whereas a few will still vouch for high-level involvement. As the time conceded the traditional banking has enthused forward and welcomed numerous vicissitudes and technologies for affluence of Banking for everyone but meanwhile as the technology entered the banking sector the cyber-criminal also got access in the entire banking system. Here is the introduction of Artificial Intelligence grabbed a step forward. Banking has become cashless, faceless for customer expediency. This thesis explores the evolution, applications, and impact of AI, particularly in the banking and financial sectors. It provides a historical overview of AI, highlighting key milestones, deep learning, and robotics. showcasing its potential to enhance efficiency and security. A key focus of this research is the Indian banking sector, where AI is increasingly utilized for fraud detection, risk assessment, customer service, and operational automation. The study analyses major financial fraud cases, including cyber fraud, insider fraud, credit and debit card fraud, loan fraud, and money laundering, to understand the vulnerabilities in traditional banking systems. Through detailed survey studies, it demonstrates how AI-powered tools such as fraud detection algorithms, biometric authentication, and predictive analytics help mitigate risks and prevent fraudulent activities. By providing a comprehensive analysis of AI applications, it underscores the significance of AI in strengthening the banking ecosystem. It concludes recommendations on leveraging AI for improved fraud prevention, regulatory compliant sustainable financial growth, ensuring a secure and resilient banking infrastructure.
DOI: https://doi.org/10.5281/zenodo.15798162
