“Digitalisation and the Future of Commercial Banking” explores the profound impact of digitalisation on the banking sector. Through the lens of an extensive literature review, it reveals that digitalisation has revolutionised banking operations, services, and customer relationships.
Digitalisation has introduced new banking models, such as digital-only banks, and has reshaped traditional models. It has made banking more efficient by automating processes and reducing costs. It has also enhanced customer experience by providing 24/7 access to banking services, personalised services, and improved communication channels.
Despite these benefits, digitalisation has also brought challenges. Cybersecurity risks, data privacy concerns, and the need for substantial investment in digital infrastructure are among the most significant. Moreover, digitalisation has led to the displacement of banking jobs, creating a need for employees to reskill.
The paper also highlights the role of regulatory and supervisory authorities in managing these challenges. It underscores the importance of creating a regulatory framework that encourages innovation while ensuring financial stability and consumer protection.
Finally, it anticipates the future of banking in the digital age. It suggests that banks will continue to digitalise their operations and services, integrate with fintech companies, and develop innovative products. It also predicts that artificial intelligence, blockchain, and big data will play a pivotal role in shaping the banking industry.
Go to source article: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4737265