Banking in the Age of Industry 5.0: Charting a Path to Technological Transformation

Technological developments are closely linked to the future course of the banking industry, as are political and economic considerations. Banking managers must quickly identify technology trends to make strategic decisions and fully use the opportunities presented to them. The innovative paradigm for contemporary banking, known as Industry 5.0, appears, signaling a revolutionary development in the field. After a thorough review of the literature, crucial indicators are identified—which are further divided into three categories: negligible, critical, and essential—have been determined to be crucial for the adoption of Industry 5.0. The book chapter focuses on the vital indicators that are crucial for the integration of banking Industry 5.0. More specifically, the study explores the application of new technologies in the banking sector during Industry 5.0, clarifying the complex influence of these factors on the industry's transformation. In the ongoing narrative of technological advancement, the banking sector is at the center of innovation and change. It is of the utmost significance to consider the historical trajectory of industrial evolution as we approach Industry 5.0. Industry 5.0 ushers in a new era of collaborative synergy between humans and machines, much as the previous industrial revolutions—marked by mechanization, mass production, digitization, and smart manufacturing—reshaped the structure of industries. Considering this, Banking in the Age of Industry 5.0 stands out as a crucial examination of how the banking industry manages the fusion of innovative technology and human creativity. The chapter aims to understand the complex relationship between past industrial revolutions and the transformative potential of Industry 5.0 in the banking sector by following the path from task mechanization to process digitization and the approaching era of human-centric collaboration.