System evaluation demonstrates rapid verification and tamper-proof auditing in digital banking, suggesting improved security and reduced fraud.
The banking sector has undergone a rapid transition from paper-based, manual operations to fully digitalized financial services. However, this digitalization introduces a significant "trust gap" by removing the human element from customer onboarding and document verification, leading to operational inefficiencies and increased vulnerability to sophisticated fraud attempts. This paper proposes a comprehensive "Smart Banking Ecosystem" designed to bridge the gap between the high-speed user experience of modern neobanks and the rigorous on-premise security of traditional financial institutions. The proposed solution relies on a microservices-oriented architecture that physically and logically separates public-facing components from administrative tools. At its core, the system integrates a Dual-Validation algorithm: an Artificial Intelligence (AI) layer acts as an intelligent validator for automated Know Your Customer (KYC) identity checks and credit scoring, while a private, permissioned blockchain acts as an immutable anchor for digital contracts. Extensive performance testing indicates that the system can perform complex biometric processing and text extraction in an average of 2.35 seconds, execute machine learning credit predictions in 112 milliseconds, and anchor cryptographic hashes in 34 milliseconds. The results demonstrate that integrating AI for automated decision-making and blockchain for cryptographic data immutability successfully addresses challenges related to transparency, verification, and data integrity in digital banking platforms.
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Raul-Anton Jac (2026) studied this question.
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