FINTECH REVOLUTION: A SYSTEMATIC REVIEW OF AI AND BLOCKCHAIN INTEGRATION IN MODERN FINANCIAL SYSTEMS IN BANKING SECTOR

Abstract

The FinTech revolution is changing the way banks work around the world by combining blockchain and artificial intelligence (AI) to make safe, efficient, and customer-focused financial environments. A systematic review of AI blockchain convergence in modern banking, emphasizing its transformative impact on security, operational efficiency, and financial innovation. AI enables intelligent decision-making through applications such as fraud detection, credit risk assessment, algorithmic trading, and predictive analytics, while blockchain provides decentralized, tamper-resistant, and auditable transaction infrastructure. Digital currencies, asset tokenization, decentralized finance (DeFi), smart contracts, and automated regulatory compliance are some of the new FinTech applications driven by their synergy. This integration also supports Environmental, Social, and Governance (ESG) by facilitating real-time fund allocation, sustainable investment tracking, and transparent auditing. Despite its significant potential persisting, including regulatory ambiguity, scalability limitations, cybersecurity risks, and data privacy concerns, which limit large-scale adoption in banking systems. By synthesizing and analyzing key technological trends, the current capabilities of AI–blockchain integration in FinTech that the synergistic convergence of AI, blockchain, and financial technologies is a critical enabler for next-generation digital banking, promoting financial inclusion, resilience, and sustainable economic growth