A Study on Using AI-Enabled Banking Services by Accelerating Digital Financial Inclusion

Abstract

This investigation focuses on preparing India for the future by analyzing how AI-enabled banking services can speed up digital financial inclusion in the nation. Financial inclusion acts as an equalizer, allowing all citizens to both benefit from and contribute to economic prosperity. When India first introduced financial inclusion by nationalizing its banks in the middle of 1969 and then developing a number of regulations to make it operable. A combination of accomplishments and failures make up the track record. Even with advancements, inclusion is hampered, especially in rural regions, by issues like the digital divide and the constraints of conventional banking methods. According to the study, banking services powered by AI have the potential to revolutionize the industry. AI can increase security, improve creditworthiness evaluations for marginalized groups, and personalize financial goods. India can strengthen its place as the global financial leader, empower its people, and encourage financial literacy by utilizing AI. The report also examines the possible advantages and difficulties of integrating AI in the Indian banking industry, taking user adoption, infrastructure needs, and regulatory frameworks into account. The study investigates how AI can help overcome current obstacles and suggests methods for using AI sensibly and morally to promote equitable financial growth. The purpose of the article is to further the current discussion on using AI to strengthen all Indians and accomplish sustainable economic growth. This study evaluated the effect of AI on the inclusion of digital finances using survey data and a review of the literature as key sources of information. The current study found that AI significantly affects the inclusion of digital finances in domains like customer happiness, service effectiveness, and behavioral finance.