Technological convergence in financial services: AI, blockchain, and cloud innovation driving cost efficiency in modern banking

Harcharan, Jassal J (2025) Technological convergence in financial services: AI, blockchain, and cloud innovation driving cost efficiency in modern banking. World Journal of Advanced Engineering Technology and Sciences, 15 (3). pp. 1475-1485. ISSN 2582-8266

This article examines the technological transformation reshaping the banking and financial services industry through the convergence of artificial intelligence, blockchain, and cloud computing. It analyzes how these technologies are simultaneously driving cost efficiency and service enhancement across the sector. The article explores the evolution of AI applications from experimental implementations to comprehensive ecosystems that now underpin critical banking operations, detailing how machine learning and generative AI are revolutionizing everything from customer service to fraud detection. The article further shows blockchain's impact on transaction processing, particularly in cross-border payments, and the emergence of Banking-as-a-Service models that are fundamentally altering service delivery paradigms. Digital transformation strategies, including mobile-first approaches and real-time processing capabilities, are evaluated for their financial impact on operational efficiency and customer experience. The article concludes with an analysis of future strategic priorities, including innovation funding patterns, competitive responses to fintech disruptors, ESG integration, and personalization strategies, providing a comprehensive overview of how technological adaptation is creating substantial economic benefits throughout the banking ecosystem.