Chapter 2: The Evolution of AI in Finance and Banking: Transforming Services and Security: A Paradox Perspective Available to Purchase

The financial landscape is undergoing a significant transformation, with Artificial Intelligence (AI) and financial technology (FinTech) emerging as the driving forces behind unprecedented change in banking institutions. FinTech start-ups and the deployment of AI technologies have revolutionized the way financial services are offered, consumed and regulated. This chapter will explore the disruptive influence of AI and AI-powered FinTech in changing traditional banking and financial services. This chapter will also examine the implications for the future of finance, highlighting how paradoxes emerge in the broader financial ecosystem, identifying interrelationships and capturing their synergistic potential. This chapter will use a systematic content analysis approach to examine, analyze and synthesize relevant literature publications and existing research. This chapter aims to improve understanding of the revolutionary potential of AI in the financial sector by synthesizing previous research and highlighting significant trends and challenges. The findings of this research draw attention to the paradoxical nature of the various attempts to integrate AI in FinTech, thereby providing practical insights for the banking and financial services industry stakeholders. Financial institutions can use insights from this research on how to navigate the FinTech revolution and the paradoxical nature of AI advancements to inform their AI strategies, data privacy, financial inclusion and key practices for risk management. Policymakers and regulators can gain significant insight into the regulatory issues and opportunities presented by AI-powered FinTech developments. As a result, this study will contribute to the growing body of literature on responsible AI deployment in the financial sector.