AI to Enhance the Transactional Security in Digital Banking

Abstract

The integration of artificial intelligence (AI) has enhanced banking operations by providing improved customer service, security, and efficiency. For data privacy and security, Banks must implement robust data security measures to gain customer trust as well as comply with regulatory requirements. Therefore, this study examined whether AI-based security systems can augment transactional safety, secure pay systems, and strengthen customer trust in digital banks. Quantitative research design and stratified random sampling technique is used for data collection. Questionnaire is filled up with digital banking customers and professionals. Descriptive statistic is used to understand the demographics of respondent, Cronbach’s alpha test for reliability e and regression analysis is applied to analyze how AI can enhance the transactional security in digital banking. The findings point out that AI techniques are most influential on transaction security and customer trust, and powered security systems play an auxiliary role in securing payment systems. The digital banking platforms are also significant mediators that make both AI techniques and powered security systems more effective. AI-based security solutions, such solutions provide extensive protection against cyber threats and improve the user experience to bring about easy and hassle-free transactions with the help of different features like AI chatbots, real-time fraud alerts, and automated dispute resolution add up to make the banking environment secure and customer-friendly.

Keywords: AI techniques, transactional security, payment system security, digital banking platforms, customer trust and powered security systems.