Digital transformation in banking involves the shift to offering online and digital services as well as backend changes to support this shift. It involves integrating multiple fintech solutions to automate, optimize, and digitize processes, as well as increase data safety. This process implies large and small changes that reshape the methods and technologies used in the financial area.

Digital transformation keeps evolving in the BFSI sector and multiple technologies are integrated in it, including but not limited to :
- Big Data Analytics has helped BFSI optimize their performance and identify risky and fraudulent customers.
- AI or Cognition has enabled personalized experiences, such as Chatbots, face recognition, and image recognition.
- IOT has enabled streamlined work and better fraud detection, such as auto insurance through connected cars and home insurance through smart homes.
- Cloud computing has helped lower operational costs, scale to match demand surges, and provide a boost to online and mobile banking or insurance.

Banks must incentivize customers over their data rights, synergize digitization with green development and safeguard disadvantaged groups to improve digital transformation. Banks must also advance digital transformation by opening/sharing software solutions and regularizing digital technology applications, recognizing & mitigating risks.

There is no doubt that digitalization in banks offered enhanced customer services to their customers. This provides convenience and helps to save people time. The use of digital technology reduces human error, thus increasing customer loyalty. Today, people have access to their banks at any time of day due to digital online banking.

Many customers have switched banks for better mobile CX, according to the experts, which has led to the following trends:
- Banks are making the transition to two-way conversations on mobiles as 53% of respondents are frustrated when they can't reply to a message.
- Banks are embracing digital and AI technology to enhance the customer experience, but trust is essential.
- Financial institutions are reducing the gap between how they engage with customers and how customers would like them to, such as personalized financial advice.
- Customers appreciate the convenience of chat-bots, but still desire human connection, especially during moments of frustration.
- Banks are developing more security policies to ensure every customer experience is secure to build trust.