Issues and Challenges of Digital Banking System

The evolution of digital banking, significantly propelled by recent technological advancements and the COVID-19 pandemic, marks a transformative era in the financial sector. This paper delves into the ways digital innovations such as AI, big data, and cloud computing are revolutionizing banking by enhancing efficiency, security, and accessibility, thereby fostering financial inclusion and economic reform. It navigates through various challenges including security risks, service availability, customer support, and regulatory compliance, while also examining the integration and impact of emerging technologies. A comparative analysis of the adoption and challenges of digital banking in both developed and developing economies is presented, with a focus on the effectiveness of multiple criteria decision-making (MCDM) techniques in refining banking services. The findings offer crucial insights for banking sector managers and policymakers, highlighting the importance of adaptive strategies for the secure and inclusive growth of digital banking in a constantly evolving global landscape.