Desk report: As financial institutions worldwide accelerate their shift toward digital ecosystems, a new scholarly contribution by Mosa Sumaiya Khatun Munira—a banking professional with over 13 years of experience and a current MBA Student at Indiana State University—offers critical insights into the technologies, trends, and systemic challenges shaping the future of banking.
Published in the January 2025 issue of Strategic Data Management and Innovation, Munira’s article, Digital Transformation in Banking: A Systematic Review of Trends, Technologies, and Challenges, provides a meticulously organized synthesis of 150 peer-reviewed studies conducted between 2015 and 2025. Her research underscores how innovations such as artificial intelligence (AI), machine learning (ML), blockchain, and cloud computing are redefining operational models, customer expectations, and regulatory frameworks in the financial sector.
Technological Evolution Meets Strategic Imperative
The study identifies a profound industry shift toward customer-centric, data-enabled service delivery. With over 70% of customers preferring digital banking interactions over traditional branch visits, banks are increasingly leveraging AI-driven solutions to enhance personalization, automate risk assessment, and strengthen fraud detection systems.
“AI and ML have moved beyond experimental use,” Munira notes. “They are now embedded in core banking functions, from credit scoring to client engagement.”
Blockchain, often associated with cryptocurrency, emerges in her analysis as a pivotal tool for improving transaction transparency, reducing cross-border settlement friction, and enabling decentralized identity verification. The review highlights how institutions like Ripple and initiatives such as Sovrin and Marco Polo are leading the application of distributed ledger technologies (DLT) to improve trust, efficiency, and compliance in both retail and commercial banking.
Operational Efficiencies and Institutional Challenges
Beyond innovation, Munira’s research provides a grounded perspective on the complex realities of implementation. Digital transformation demands not only significant capital investment, but also cultural and operational reengineering. Legacy systems, cybersecurity vulnerabilities, and regulatory ambiguities remain persistent barriers—particularly in markets with limited digital infrastructure.
“Technology is advancing faster than regulation in many jurisdictions,” she writes. “This gap exposes financial institutions to legal and reputational risks, especially in areas such as data privacy, cross-border compliance, and anti-money laundering.”
The review also notes the growing reliance on cloud computing to achieve scalability and reduce infrastructure costs. However, as banks migrate to cloud-based environments, new risk vectors around data sovereignty and third-party dependency emerge—requiring robust governance protocols and cross-functional risk assessments.
Digital Inclusion and Emerging Markets
The study devotes significant attention to financial inclusion in developing economies. Munira presents case studies from Kenya, India, and Rwanda, where mobile banking platforms such as M-Pesa and Aadhaar-enabled services have significantly expanded access to credit, savings, and remittance tools. However, she cautions that digital adoption in many low-income regions is still constrained by limited internet connectivity, digital literacy, and high implementation costs.
Her findings emphasize that targeted policy interventions, public-private partnerships, and infrastructure investments are essential to bridge this divide and unlock the full socio-economic potential of digital finance.
Sustainability in the Digital Banking Age
In a forward-looking section of the review, Munira examines the environmental implications of digitized banking ecosystems. While digitalization reduces the industry’s carbon footprint by minimizing paper usage and physical infrastructure, the energy consumption of data centers and blockchain protocols poses new sustainability challenges.
Her work advocates for the integration of green banking practices—such as AI-driven environmental impact assessments and blockchain-based carbon credit tracking—as a dual path to innovation and ecological responsibility.
A Blueprint for Financial Transformation
With an academic lens grounded in real-world experience, Munira’s contribution stands out as both a scholarly resource and a practical guide. Her insights offer banking leaders, fintech entrepreneurs, and policymakers a balanced framework for aligning digital innovation with operational resilience, regulatory compliance, and long-term sustainability.
As the global financial system undergoes rapid digital reconfiguration, the stakes are high. Munira’s research underscores that institutions willing to invest in secure, inclusive, and adaptive digital strategies will be best positioned to lead in the next era of banking.
Probas Bangla Voice /Dhaka/ 13 May 2025 /MM
