Connected Intelligence in Banking Systems: From Digital Banking to Cognitive Finance in the GCC
DOI:
https://doi.org/10.63503/aisem.51Keywords:
Financial inclusion, Digital banking access, Digital transaction intensity, Connected intelligence, Cognitive finance, Artificial intelligenceAbstract
The focus of this research is on the role of connected intelligence in banking systems in enhancing financial inclusion in the Gulf Cooperation Council (GCC) countries. The aim is to investigate whether digital banking access, digital transaction intensity, the connected intelligence index, and AI/cognitive finance readiness contribute to financial inclusion in Bahrain, Kuwait, Oman, Saudi Arabia, the UAE, and Qatar. The paper notes the rapid digital transformation of GCC banking systems and the subsequent shift towards intelligent financial services from 2018 to 2024. Country-level panel data is utilized in the quantitative research design, which relies on secondary data. The research indicates that financial inclusion in GCC countries is positively influenced by access to digital banking, digital transaction intensity, the connected intelligence index, and AI/cognitive finance readiness. Based on these findings, the region's financial inclusion is likely to be enhanced by expanding digital access, intensifying use of digital financial services, strengthening integration across banking systems, and increasing readiness for AI-driven financial capabilities. This is unique because it merges traditional digital banking variables with broader connected intelligence and cognitive-finance readiness in a single GCC-focused structure. Not only digital access but also active digital use, system-level integration, and responsible development of AI-enabled financial services are deemed crucial by policymakers and banks. A new regional model in the GCC is characterized by its integration of banking transformation, connected intelligence, cognitive-finance readiness, and financial inclusion.
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