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BANKING IN THE ERA OF ARTIFICIAL INTELLIGENCE

Tran Thi Hang* 1
1 Thanh Do University, Hanoi, Vietnam.
(*E-mail: hanghavkt@gmail.com)

ABSTRACT
This article examines the landmark shift of the financial sector from traditional
models to Cognitive Banking and Invisible Banking ecosystems. In the era of Artificial
Intelligence (AI), banking is no longer defined by fixed physical locations but has evolved
into an intelligent service layer—present everywhere yet directly invisible (Bank 4.0).
Through qualitative research methods and case study analysis in Vietnam, this study
demonstrates that AI and embedded finance have comprehensively restructured
operational efficiency and risk management. Empirical evidence indicates that the
application of next-generation AI and embedded finance has fully transformed these
frameworks. Real-world examples in Vietnam show that TPBank optimized its Cost-to-
Income Ratio (CIR) to a record low of 33-35% via Robotic Process Automation (RPA); MB
rapidly reached the 30-million-customer milestone through a platform banking model;
while Techcombank utilized a "data brain" to maintain non-performing loans (NPL) below
1% despite market volatility. Furthermore, the paper analyzes challenges concerning
security, data vulnerabilities, and algorithmic ethics. The author emphasizes the
philosophy of "Digital Humanism," asserting that banks in the AI era are self-learning
entities that understand and unconditionally serve the practical needs of customers.
Keywords: Artificial Intelligence (AI); cognitive banking; digital humanism;
embedded finance; invisible banking.

1. Introduction
1.1. Opening
In the context of the Fourth Industrial Revolution and the rise of Artificial
Intelligence (AI), the banking industry is undergoing a comprehensive overhaul. This
transformation ranges from shifting operational models through automation and
optimizing risk management with machine learning to redefining customer satisfaction via
Generative AI (GenAI). This represents an inevitable developmental roadmap that
financial institutions worldwide, and specifically in Vietnam, must pursue to maintain
their competitive edge.
This transition transcends mere process digitization; it represents a fundamental
shift in business models: from traditional banking to cognitive banking ecosystems and
invisible banking. In this era, banking is no longer confined to fixed physical locations but
has evolved into an intelligent service layer, omnipresent and deeply "embedded" within
every user context (Bank 4.0). Despite extensive global research on AI in finance,
empirical studies evaluating the practical impact of GenAI within the specific context of
Vietnamese commercial banks during the 2024–2025 period remain limited. Recognizing
this significance, the author has chosen the topic “Banking in the Age of Artificial
Intelligence” to provide an in-depth analysis of the industry's fluctuations and prospects.
1.2. Research objectives and scope
The article focuses on analyzing how AI disrupts traditional barriers to reshape
the landscape of the modern banking system through five core pillars: (1) Smart

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