Democratizing Financial Services: The Role of Artificial Intelligence in Transforming Daily Banking and Personal Finance Management

Adisti Maharani Krisna; Ida Ayu Agung Paramitaswari

Authors

Adisti Maharani Krisna Finance and Banking Study Program, Denpasar Academy of Finance and Banking AKABA, Indonesia, Indonesia Author
Ida Ayu Agung Paramitaswari Finance and Banking Study Program, Denpasar Academy of Finance and Banking AKABA, Indonesia, Indonesia Author

Keywords:

Artificial Intelligence, Digital Banking, Personal Finance Management, Financial Inclusion, Robo-advisors, Fraud Detection

Abstract

The integration of artificial intelligence (AI) in banking and finance has fundamentally transformed how individuals interact with financial services in their daily lives. This study examines the democratization of financial services through the application of AI technologies, focusing on machine learning, deep learning, natural language processing, and computer vision. Through systematic analysis of recent literature (2020-2025), this research identifies six core daily-life applications: mobile banking personalization, real-time fraud detection, alternative credit scoring, robo-advisory services, conversational banking interfaces, and intelligent personal finance management. Results indicate that AI enables unprecedented accessibility, personalization, and efficiency in financial services, particularly benefiting underserved populations through the use of alternative data and 24/7 digital access. However, challenges persist regarding data privacy, algorithmic bias, explainability requirements, and regulatory compliance. The study contributes to understanding how AI-driven financial democratization impacts consumer behavior, banking operations, and financial inclusion, with implications for emerging markets seeking to leverage technology for broader economic participation. This research provides practical insights for financial institutions, policymakers, and educators in adapting to the AI-transformed financial landscape.

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