Global trade with smart systems: The evolution of artificial intelligence-enabled financial models in international banking

This study examines the historical development of international banking, the global dimension of financial models, and the impact of digitalization on the banking sector from an integrated perspective. International banking, as a system that enables the cross-border movement of capital, foreign exchange, and financial services, has become one of the key components of global economic integration. Historically, its evolution from medieval merchant banking to the Industrial Revolution, the Bretton Woods system, and the digital era has shaped the structural transformation of the financial system. The international dimension of financial models seeks to explain the relationship between risk and return by incorporating variables such as exchange rate volatility, market integration, and information asymmetry. Models such as the Capital Asset Pricing Model (CAPM), International CAPM (ICAPM), and multifactor frameworks have become central tools for analyzing global investment behavior and portfolio performance. In contemporary finance, artificial intelligence, machine learning, and algorithmic modeling offer new paradigms that enhance predictive accuracy and analytical depth. Digitalization has fundamentally transformed the banking sector on operational, organizational, and strategic levels. Technologies such as blockchain, big data analytics, artificial intelligence, and mobile banking have redefined how financial institutions deliver services. In Turkey, the rapid adoption of digital channels, the expansion of the fintech ecosystem, and the development of Central Bank Digital Currency (CBDC) initiatives represent concrete aspects of this transformation. Nevertheless, the digitalization process introduces new challenges related to cybersecurity, data protection, financial inclusion, and regulatory compliance. In conclusion, the historical evolution of international banking, the advancement of financial modeling, and the digital transformation of finance constitute three core dimensions that define the restructuring of the global financial system. The sustainability of this transformation depends not only on technological innovation but also on strong regulatory frameworks, economic stability, and ethical responsibility.