Future of Banking in the Digital Era: A Systematic Literature Review
DOI:
https://doi.org/10.55829/1vg7wy62Keywords:
Digital transformation, FinTech, Artificial intelligence, Financial inclusion and Bank efficiencyAbstract
This paper provides an overview of the analysis of an SLR on how digital transformation and financial technologies (FinTech) are modifying the structure, functioning, and inclusiveness of the global banking sector. The study primarily aims to consolidate existing knowledge on the effect of digital innovations on financial institutions’ operational efficiency, customer interaction quality, and socio-economic growth. A systematic search was conducted in the Scopus and Google Scholar databases following the PRISMA framework for peer-reviewed articles published between 2015 and 2025. Inclusion criteria included English-language, full-text original articles that directly studied banking digital services and technologies. Information was retrieved and analyzed thematically to identify trends, patterns of events, and research gaps. The study results indicate that AI/machine learning has changed banking operations by automation, fraud detection, and customization of financial services, sufficiently enhancing capability and productivity. FinTech products, mobile money, and digital lending in particular have improved access to finance with benefits to small and medium-sized enterprises as well as financial inclusion in developing markets. Yet the review also notes ongoing barriers, including cyber threats, high implementation costs, and inconsistent regulations that pose a risk to the sustainable uptake of systems. In addition, although digital transformation increases operational performances and customer satisfaction, it initially reduces profitability due to technological cost. It also recommends that sustainable digital transformation must balance the innovation with investment in human capital, ethical governance, and regulatory frameworks.
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