AGENTIC AND GENERATIVE AI: TRANSFORMING BANKING SERVICES FOR THE DIGITAL AGE

Abstract

The rapid evolution of artificial intelligence (AI) has introduced Agentic AI and Generative AI as major forces transforming modern banking services. Agentic AI enables autonomous decision-making, task execution, and proactive interaction, reducing operational workloads and enhancing customer support through intelligent financial assistants. Generative AI contributes significantly to fraud detection, personalized financial recommendations, document automation, and secure identity verification by leveraging advanced data synthesis and pattern analysis. Together, they elevate banking efficiency, regulatory compliance, and customer satisfaction while minimizing human error and financial risk. As banks migrate toward digital-first ecosystems, the integration of these AI systems fosters scalability, enhances cyber resilience, and supports real-time risk evaluation, empowering financial institutions to deliver secure, responsive, and innovative services. Despite these advancements, challenges remain in data privacy, ethical governance, high implementation costs, and security vulnerabilities linked to AIdriven automation. This study examines the combined role of Agentic and Generative AI in revolutionizing banking operations, highlights key benefits and risks, and provides insights into future research directions for safe and intelligent financial transformation.