Banking Accounting Transformation in the Digital Era: Data Analytics, Cyber Risk, and ESG Reporting
DOI:
https://doi.org/10.59890/mjst.v3i6.254Keywords:
Banking Accounting, Digital Accounting, Expected Credit Loss, Big Data, Artificial Intelligence, Cyber Risk, ESG, Risk GovernanceAbstract
This article discusses the transformation of banking accounting in the digital era by emphasizing the interconnection between technological innovation, changes in reporting standards, risk management, and sustainability demands. Through a qualitative literature review method, this article synthesizes academic literature since 2020 on digital banking, digital accounting, big data, artificial intelligence, blockchain, cyber risks, as well as environmental, social, and governance (ESG) reporting. The discussion results indicate that the main trend in banking accounting is moving from historical recording functions to strategic information systems that are real-time, predictive, and integrated with risk governance. However, this transformation raises challenges in terms of data quality, model interpretability, regulatory compliance, privacy protection, human resource readiness, technology investment costs, and consistency of sustainability disclosures. This article asserts that modern banking accounting cannot be understood merely as the process of preparing financial statements, but rather as a governance infrastructure that connects bank stability, market transparency, customer protection, and sustainability agendas. In practical terms, banks need to develop a robust data architecture, technology-based internal controls, digital accountant competencies, and auditable ESG governance. The article also presents a future research agenda regarding the integration of financial and non-financial reporting, audits of AI models, and the impact of ESG implementation on banking behavior in Indonesia
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