Paper Contents
Abstract
The global banking and trade sectors are undergoing a fundamental digital transformation that extends beyond technological upgrades to a restructuring of business models, competitive landscapes, and regulatory frameworks. This study synthesizes academic and industry literature to examine the technological enablers of this shift—artificial intelligence (AI), distributed ledger technology (DLT), cloud computing, and open banking—and their strategic impacts on financial institutions and trade finance. Evidence from case studies and macro-level data demonstrates how digital solutions enhance efficiency, transparency, and customer experience, while simultaneously creating new risks related to cybersecurity, interoperability, and regulatory fragmentation. The findings highlight a dual trend of “unbundling” services by fintech innovators and “re-bundling” through large financial and technology platforms, resulting in a barbell-shaped market structure. The analysis underscores the urgency for incumbents to adapt culturally and strategically to avoid displacement, while policymakers must balance innovation, stability, and consumer protection. The paper concludes that the future of global finance and trade will be shaped by intelligent ecosystems, platform-based models, and harmonized regulatory approaches. Keywords: Digital Transformation, Banking Innovation, Trade Finance, Artificial Intelligence (AI), Distributed Ledger Technology (DLT), Open Banking.
Copyright
Copyright © 2026 Dr. Billakanti Ravinder. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
