The Evolution of Banking Industry in India: Past, Present, and Future with Special Emphasis on the Impact of AI on Banking Operations

Abstract

Purpose: The purpose of this scholarly paper is to thoroughly investigate the evolution of the banking industry in India, analyzing its historical progression, regulatory environment, and technological innovations, particularly emphasizing the transformative role of artificial intelligence (AI) in contemporary banking operations. By employing systematic frameworks such as SWOC, ABCD, and PESTLE, the study aims to identify key factors shaping current practices, assess market positioning, evaluate stakeholder perspectives, and forecast future trends and opportunities. Ultimately, the paper intends to provide actionable insights and strategic recommendations for policymakers, financial institutions, and investors to effectively navigate and leverage technological advancements, fostering sustained growth and resilience within India's dynamic banking landscape.

Methodology: This study employs an exploratory qualitative research approach to gather and analyze relevant data. The information is sourced through keyword-based searches using Google Search, Google Scholar, and AI-driven GPT models. The collected data is then systematically analyzed and interpreted in alignment with the study's objectives.

Results/Discussion: The article applies multiple industry analysis frameworks, including SWOC (Strengths, Weaknesses, Opportunities, and Challenges) to assess market positioning, ABCD (Advantages, Benefits, Constraints, and Disadvantages) for performance evaluation, and PESTLE (Political, Economic, Social, Technological, Legal, and Environmental) to understand macroeconomic influences.

Novelty/Values: The paper presents strategic recommendations for stakeholders, including policymakers, financial institutions, and investors, to enhance growth, resilience, and innovation in the Indian banking sector.

Type of Paper: Exploratory Research Case Study.