This article is published by Impulse4Women in collaboration with FINE (Fintech Investor Network & Ecosystem)
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Unpredictability in the economy and rapid technological innovation are forces that often seem to counterbalance each other. However, they both represent the daily challenges banks must navigate. The financial sector is undergoing forced evolution as technology increasingly influences competition within banking organizations.
To remain competitive, banks must adopt technologies like artificial intelligence (AI) to enhance their banking operations and payment services. Additionally, when discussing the technological advancements of financial institutions, one must not forget the ethical and moral duty to foster a more inclusive financial ecosystem. This article explores how modern financial institutions can leverage technological advancements to improve their services and promote financial inclusion.
Banks that want to maintain relevance with their customer base are those willing to meet the demands and expectations of those they serve. Roman Zomko, CEO of Impress IT, in his article, “Emerging Trends in Digital Banking for 2025,” stated that reliable institutions are required to not only meet, but to exceed these expectations by predicting the needs of consumers (Zomko, 2025). Minimal effort in managing their accounts and intuitive services are at the forefront of customers’ preferences.
Thanks to technological innovation, clients are increasingly using their mobile phones to access their bank accounts. This means that online banking should be user-friendly, funds are trusted to be kept safe via cybersecurity, and the needs of the consumers are efficiently met. Additionally, Zomko elaborates that the personalization and tailoring of services to align with life stages and needs of banking customers allows for the institutions to demonstrate integrity. To stay in competition, banks must not only provide exceptional online banking services, but also prioritize customer-centric solutions in an increasing digital world.
Taking advantage of AI within digital banking is a key component of keeping up with competition. AI is a powerful technological tool that can power internal banking operations by improving customer service, detecting fraud, and managing money and investment (O’Brien & Downie, 2024). Digital transformation initiatives are reshaping industries and have been increasingly embraced since the advent of AI technologies.
If traditional banks don’t begin to innovate themselves by utilizing artificial intelligence, they won't be able to stay in competition with emerging banking startups. O’Brien and Downie emphasize that customers want digital banking experiences, for example: apps that teach them about provided services, quick interaction with people or virtual assistants, and easy financial management. Technological advances provide customers with a user-centric approach that allows for this smooth finance management and reassurance that their money is kept safe (O’Brien & Downie, 2024).
Artificial intelligence should be integrated among banking institutions to enhance their digital banking processes and make them more helpful and appealing to their target customer base. The authors also elaborated on robotic process automation (RPA) to validate customer data to know your customer (KYC), for anti-money laundering (AML), and customer due diligence (CDD) restrictions (O’Brien & Downie, 2024). Artificial intelligence is a technological innovation that enhances digital banking services to promote financial inclusion.
Financial inclusion is defined as people and businesses having access to affordable financial resources. There are regions of the world where populations are either underserved or not served at all in regards to access to financial education and financial institutions. The World Bank states that the responsible and sustainable delivery of financial services “fosters economic growth and employment, promotes economic empowerment of women, and contributes to eliminating poverty” (“Financial Inclusion,” 2025).
Financial inclusion works to reduce poverty and boost prosperity by improving the accessibility of financial services. Rather than going to in-person banking facilities, people can access their finances through digital banking or mobile money accounts. A mobile money account is an electronic wallet service used as an alternative to a bank account.
In a 2024 figure entitled, “Active mobile money accounts,” it’s shown that Sub-Saharan Africa makes up over 50% of the portion of the 600 million active mobile money accounts globally, showcasing that mobile money found a way to penetrate the market in the absence of traditional banks (“Active mobile money accounts”, 2024). An example of one of the most successful African mobile money businesses is M-PESA.
Launched over 17 years ago in Kenya, M-PESA has expanded its reach to 51 million customers and 7 African markets, totalling over $314 billion in transactions every year, and is continuing to grow (“M-PESA”). M-PESA provides easy access to financial services without needing a bank account, allowing individuals to send and receive money from family and friends across the continent, or simply access their paychecks online.
This provides evidence that since more underdeveloped regions aren’t able to access financial infrastructure or digital banking, mobile money will allow financial inclusion to flourish. As regions continue to adopt alternative forms of electronic wallet services, a larger customer base will be able to have their financial needs met.
Traditional banking has become less convenient as the world moves more forcefully into the digital sphere. World Bank Group President, David Malpass, said, “The digital revolution has catalyzed increases in the access and use of financial services across the world, transforming ways in which people make and receive payments, borrow, and save” (“Is mobile banking taking over traditional banks?”, 2023). It’s questionable whether online banking has the possibility of taking over traditional banks.
However, Vincenzo Capizzi, SDA Professor of Banking and Insurance, told International Finance that mobile banking cannot take over traditional banking as it fails to build customer relationships. Although digital banking can provide quick, customer-centric services, this type of banking lacks the in-person, one-on-one interaction that allows for authentic connection and communication. Mobile banking allows for more customers to be able to access financial services, facilitating financial inclusion globally.
Recent years have seen an improvement in financial education and access for those historically underserved by institutions. Financial technology fosters a general well-being that extends beyond the mere monetary gains and empowers individuals to make sustainable choices (Schurr, 2023). These sustainable and responsible choices are key components that make up financial inclusion for people and businesses alike.
Perumalla advises, “The opportunity for fintech to reach the unbanked and underbanked promises to unlock their economic potential and reduce financial inequality” (Perumalla, 2024). Financial technology serves as a gateway to include those not effectively served by traditional financial institutions. Financial inclusion is beneficial for both people and businesses alike, so its enhancement is a priority. This inclusion is an opportunity for banks to attract and retain more customers as they meet their needs through affordable financial services.
The economy can be unpredictable, and with the evolution of technological innovation, traditional banks face both challenges and new opportunities. As a result, banks need to stay in competition with other institutions by welcoming the improvement of digital banking and financial inclusion tactics. Customers want their banking experiences to be personalized, smooth, and secure, so it is essential for banks to prioritize these expectations to remain key players in the ecosystem.
Financial inclusion is a key ethical part of this banking transformation, as digital banking and alternative electronic wallet services can provide access to financial resources for those in underserved areas. The future of banking depends on how effectively institutions can innovate with technology while also focusing on customer-centric solutions. As financial institutions adopt digital banking improvements and financial inclusion strategies, they’ll begin to sustainably enhance the lives of people and businesses.
About FINE:
The Fintech Investor Network and Ecosystem under the European Commission build stronger connections among fintech networks, both locally and internationally.
FINE encourages investors to collaborate and invest together in fintech start-ups. Our approach creates a more vibrant investment environment, fostering European-wide innovation, and helping companies grow across borders.
Works Cited
- International Finance. (2023). Is mobile banking taking over traditional banks? https://internationalfinance.com/magazine/banking-and-finance-magazine/is-mobile-bankin g-taking-over-traditional-banks/
- (n.d.). M-PESA. Vodafone Group, https://www.vodafone.com/about-vodafone/what-we-do/m-pesa.
- O’Brien, Keith, & Downie, Amanda. (2024). What is AI in banking? IBM. https://www.ibm.com/think/topics/ai-in-banking.
- Our World in Data. (2024). Active mobile money accounts. https://ourworldindata.org/grapher/active-mobile-money-accounts
- Perumalla, Sri P.T. (2024). How Innovation and Technology Are the Keys to Improving Financial Inclusion. Fintech Weekly. https://www.fintechweekly.com/magazine/articles/how-innovation-and-technology-are -the-keys-to-improving-financial-inclusion.
- Schurr, Eric. (2023). How fintech can support a holistic view of consumer needs. FinTech Magazine. https://fintechmagazine.com/articles/how-fintech-can-support-a-holistic-vie w-of-consumer-needs.
- World Bank Group. (2025). Financial inclusion. https://www.worldbank.org/en/topic/financialinclusion/overview
- Zomko, Roman. (2025). Emerging Trends in Digital Banking for 2025. Impress IT. https://impressit.io/blog/digital-banking-trends.
