Bachelor Thesis from the year 2023 in the subject Economics - Finance, grade: 100, University of Applied Sciences Bern (Bern university of applied sciences), course: Digital Business Management, language: English, abstract: The financial sector is undergoing a profound transformation driven by digitalization and technological advancements. In this dynamic landscape, financial institutions are reassessing their strategies to stay competitive.

The integration of smart technologies and the pursuit of customer-centric business models are key elements in this transformative journey. As technology reshapes traditional paradigms, the financial industry experiences a seismic shift towards digital transformation.

Fintech's emergence and the importance of smart services redefine operations, challenge business models, and create avenues for innovation. This literature review explores the theoretical framework of digital transformation, dissecting definitions, and explaining its impact on finance.

The review investigates future business models in finance, emphasizing their digital aspects and the delicate balance between replication and innovation. Shifting focus to customers, it explores the evolving concept of customer-centricity and the role of customers as co-creators in business models.

Integration of customers with smart technology becomes a critical aspect, examining technology acceptance and the role of empathic AI. Methodologically, the review outlines a systematic approach, including the identification of relevant research databases, search keywords, and meticulous study selection.

The results section uncovers gaps, perspectives, and recommendations in existing literature, providing a foundation for discussion. The discussion navigates barriers hindering customer acceptance of smart technology, explores factors in implementing customer-centric business models, and delves into building trust in the digital era.

The paper concludes by outlining future research direc. .