FinanceInsuranceMortgageRiskThe future of banking between AI and blockchain

17 July 20230

If we were to compare traditional banking to an old essay, then artificial intelligence (AI) and blockchain would be the vibrant and innovative youngsters that are pushing this essay into a new era. Two technologies that might have seemed straight out of a science fiction novel a decade ago are now redefining the banking landscape. From reducing costs and fraud to streamlining operations and improving the customer experience, AI and blockchain are undoubtedly driving the future of banking.

The central role of AI in modern banking

The importance of AI in banking cannot be overstated. As consumer needs evolve and technological innovations increase, banks are facing a tipping point in their business models. Leveraging AI, banks are exploring new ways to engage and serve customers, ushering in the era of the “future AI bank.”

For example, AI-based systems enable split-second loan approvals, biometric authentication and virtual assistance, helping banks stay one step ahead of the competition. According to a UBS report, AI-powered ChatGPT reached 100 million active users in just two months, demonstrating how quickly people are adopting AI in their everyday lives.

Banks are also adopting this trend. For example, with the launch of IBM’s WatsonX, AI offers the financial advisory industry unique possibilities, simplifying complex financial concepts for clients. UX Strategist Alex Kreger sees the potential of AI in redefining the customer experience in banking. By understanding and generating human-like responses, AI systems like GPT-4 are transforming the way we relate to banking services.

However, for banks to take full advantage of the potential of AI, it is critical to modernize their core systems. They must embrace new trends, understand the importance of open finance, and transform their core operations through technologies such as AI and hybrid multi-cloud strategies.

Blockchain in banking

While AI is revolutionizing customer-facing aspects of banking, blockchain technology is revamping the backbone of banking operations: the security and integrity of transactions. Blockchain technology, with its decentralization and security features, has quickly become an attractive solution to many challenges facing the banking industry.

The distributed ledger system provides a secure and transparent way to record transactions, eliminating the need for intermediaries. This innovation reduces costs, speeds up transactions, and improves security and transparency, key aspects of banking services.

One example is IBM’s Blockchain World Wire, which streamlines and speeds up cross-border payments and foreign exchanges using the “Stellar protocol.” These blockchain-powered systems not only make transactions more efficient, but also open up new areas in banking services, benefiting both banks and customers.

According to CB Insights, blockchain has a “huge opportunity to disrupt and innovate the banking industry, which is worth over $5 trillion,” redefining the services offered by banks. It is therefore not surprising that Deloitte suggests that banks of the future will need to embrace emerging technologies such as blockchain to succeed.

Banks at the forefront: The forerunners of AI and blockchain.

Several banks have already begun to integrate AI and blockchain into their core operations. One such pioneer is Singapore’s DBS Bank. Recognizing the potential of blockchain, DBS Bank is leveraging this technology to ensure secure and transparent transactions.

On the AI front, financial UX design agency UXDA offers services such as conversational banking, using AI to redesign the customer experience. With the massive adoption of AI platforms such as ChatGPT, the influence of AI in banking is set to grow exponentially.

The future: AI and blockchain together

The coming together of AI and blockchain represents a revolutionary prospect for the banking industry. AI brings its predictive analytics, anomaly detection and shared learning models to improve system stability and customer experience. At the same time, blockchain provides its decentralized ledger system for secure and transparent transactions.

According to McKinsey’s report, banks that can harness the potential of these technologies will have the opportunity to be resilient and successful. The future promises deeper customer relationships, increased market share, and improved financial performance for banks ready to embrace these transformations.

It is good to remember that AI and blockchain are powerful tools, but they are only tools. The real power lies in how these tools are used. Banks must ensure that their strategies put customers at the center, take advantage of emerging technologies such as AI and blockchain, and remain flexible to adapt to evolving business models.

In fact, banks that succeed in ferrying themselves into this new era will have the opportunity to become larger, more profitable, and faster growing, which could lead to up to $20 trillion in value creation.


In conclusion, AI and blockchain are not only shaping the future of banking, they are forging it, giving it a new shape, a new direction. A future in which banking is more secure, efficient and customer-centric, which is the real heart of any business.

Brace yourselves! the future of banking, driven by AI and blockchain, has just begun!

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