Transforming Retail Banking: The Impact of Digital Innovation on Customer Experience

Dr. Anil Kumar Parihar

Abstract: The retail banking sector has undergone a profound transformation due to digital innovation, fundamentally reshaping customer experience. This research article explores how technologies such as mobile banking, artificial intelligence (AI), blockchain, and data analytics have redefined service delivery, accessibility, and personalization in retail banking. By examining the integration of these technologies, the study highlights their impact on customer satisfaction, operational efficiency, and competitive differentiation. The literature review synthesizes findings from over 20 scholarly sources, revealing that digital tools enhance convenience and trust but also introduce challenges like cybersecurity risks and digital exclusion. The discussion emphasizes the balance between technological advancement and human - centric service, noting that successful banks prioritize seamless user interfaces and inclusive access. The article concludes that digital innovation is a catalyst for elevating customer experience, provided banks address ethical and accessibility concerns. Suggestions include investing in user education, robust cybersecurity frameworks, and hybrid service models to bridge digital divides. This study contributes to the understanding of digital transformation in retail banking, offering insights for practitioners and policymakers aiming to foster customer - centric innovation.

Keywords: Retail Banking, Digital Innovation, Customer Experience, Mobile Banking, Artificial Intelligence, Blockchain, Data Analytics