Comparative Analysis between AI-Driven Banking Systems and Traditional Core Banking

Author(s)	Mr. Aryaveer Singh
Country	India
Abstract	This paper examines the comparative dynamics of AI-driven and traditional banking systems, highlighting their respective strengths, limitations, and the path toward integration. AI-powered banking excels in operational efficiency, real-time fraud detection, and personalized customer engagement, yet faces challenges of bias, cybersecurity, and explainability. Traditional systems maintain deep-rooted trust, human oversight, and regulatory compliance but struggle with inefficiencies and slower adaptability. Drawing from BIS and RBI perspectives, the study advocates a hybrid model where AI enhances scale and speed, while human judgment ensures ethical governance. Strategic alignment, infrastructure development, and talent reskilling emerge as pivotal for inclusive, secure, and sustainable banking.
Keywords	Banking, Finance, RBI, Cybersecurity, BIS
Field	Business Administration
Published In	Volume 7, Issue 4, July-August 2025
Published On	2025-08-23
DOI	https://doi.org/10.36948/ijfmr.2025.v07i04.52176

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