From Legacy To Digital: Quantifying The Impact Of Artificial Intelligence, Big Data, And Cloud Computing On Banking Operational Efficiency

Abstract

The rapid evolution of digital technologies is fundamentally reshaping the operational landscape of commercial banking. This paper investigates the extent to which digital banking platforms, artificial intelligence (AI), Big Data analytics, cloud computing, customer relationship management (CRM) systems, and online banking services contribute to the reduction of operational costs in commercial banks. Drawing on a systematic review of peer-reviewed literature and aggregated industry data from 2018 to 2024, the study reveals that institutions embracing comprehensive digital transformation achieve measurable cost efficiencies ranging from 20% to 45% compared to traditionally operated counterparts. The findings underscore the strategic necessity of technology investment in banking and offer practical recommendations for institutions at varying stages of digitalization.