FinTech and Artificial Intelligence in Relationship Banking and Computer Technology

Abstract

Banks cannot afford to be complacent in their operations. Due to the dramatic changes brought about by improvements in computer technology (IT) as well as competitive intensity from FinTech businesses, they must re-evaluate their competing advantages. A major point of emphasis in this essay is that banks must not abandon relationship banking that encourages direct interaction with bank clients. Orienting relationship banking on the long term simplifies incentives while also supporting bank clients' long-term requirements and objectives. However, because to the availability of IT-driven economy of scale as well as rivalry by FinTech start-ups and IT corporations, banks may be tempted to enter the transaction banking business. In this context, the paper evaluates the importance of distance, AI, and behavioural inclinations in the decision-making process. The suggestions for banking stability are analyzed in detail. The authors believe that relationship banking has the potential to reduce its disadvantages, but it should conform to the newer facts to flourish.

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