The Role of Artificial Intelligence and Technological Advancements in Open Banking: Transformation in the Financial Sector

Abstract

In the banking sector, efforts to adapt to new technologies play a critical role in the transformation of financial services. While the concept of open banking is at the center of this transformation, the process of banks adapting to these new approaches is influenced by various factors. Firstly, strengthening and developing technological infrastructure is of paramount importance in banks' adaptation to new technologies. This is often a process requiring significant investments and necessitates banks to restructure and modernize their existing systems. Additionally, regulation and compliance processes are also a determining factor in banks' adaptation to new technologies. Compliance with rules set by financial regulators ensures that banks maintain security and compliance standards while utilizing innovative technologies. Collaborating with financial technology companies is another important strategy that enables banks to rapidly adapt to new technologies. These collaborations allow banks to expand their existing services and offer innovative solutions. Furthermore, customer expectations and demands also influence banks' adaptation to new technologies. As demand for digital banking services increases, banks are compelled to invest more in this area. Additionally, security concerns and data privacy measures are important factors that must be considered in banks' adaptation to new technologies. Protecting and securely processing customer data ensures that banks maintain their reliability. Considering all these factors, banks' efforts to adapt to new technologies are a complex process requiring careful planning, investment, and strategic partnerships. However, when managed properly, these efforts enhance banks' competitive advantage and enable them to provide better services to customers.