Generative AI in banking is revolutionizing financial workflows by transforming raw data into actionable insights, aiding in fraud detection, customer personalization, and strategic decision-making. Unlike traditional AI, which relies on historical data for predictions, generative AI creates new content and personalized recommendations, enhancing customer experiences and operational efficiency. AI techniques such as neural networks, natural language processing, and computer vision are employed to improve pattern recognition, decision support, and continuous learning in banking operations. Despite the numerous benefits, including enhanced security and better decision-making, the integration of AI poses challenges like high implementation costs, data privacy risks, and talent shortages. To mitigate these, banks can adopt strategic planning, robust security measures, and talent development programs. The future of AI in banking promises smarter virtual assistants, proactive fraud prevention, and enhanced personalization, ultimately reshaping banks into more adaptive and customer-centric institutions.