Authors: Vedala Varshith and Kuldeep Sisodiya

ABSTRACT

This study exploreshow AI chatbots are transforming digital banking by improving customer satisfaction and shaping customer trust. Chatbots are now widely used by banks to provide quick, accurate and personalised support, making banking more convenient and available 24/7. The review of existing literature shows that chatbot quality—especially usability, reliability and empathy—strongly influences how satisfied customers feel during interactions. Higher satisfaction further strengthens customer trust, particularly when chatbots provide secure, consistent and human-like responses. At the same time, concerns related to privacy, bias and lack of emotional understanding continue to affect user confidence. Different cultural and regulatory environments also create variations in how customers respond to chatbot-based services. The overall findings suggest that while AI chatbots can significantly improve digital banking experiences, their success depends on responsible design, transparent data practices and emotionally aware interactions. When implemented effectively, chatbots help banks enhance service quality and build long-term, trust-based relationships with customers.