Systematic Review of Digital Transformation Strategies in Legacy Banking and Payments Infrastructure

This paper provides a comprehensive systematic review of the digital transformation strategies in legacy banking and payments infrastructure. As the financial services industry increasingly adopts digital technologies, traditional banking systems are being disrupted by emerging solutions such as artificial intelligence (AI), blockchain, cloud computing, and machine learning. The review explores the key drivers of this transformation, including technological advancements, regulatory pressures, and shifting customer expectations. It highlights various strategies for modernizing core banking systems, integrating fintech partnerships, and upgrading digital payment infrastructures to meet the demands of the digital age. The paper also addresses the significant challenges faced by legacy banking systems, such as outdated infrastructure, organizational resistance, and security concerns. Furthermore, it examines future trends such as the integration of quantum computing, 5G, and distributed ledger technologies, and the role of AI and automation in reshaping financial operations. The paper concludes with strategic considerations for the long-term success of digital transformation in the banking sector, emphasizing agility, scalability, and sustainability. This review provides valuable insights for financial institutions seeking to adapt to an increasingly digital landscape, ensuring their competitiveness and relevance in the future of banking.