System for password-based bank authentication and AI-driven payment processing

Abstract

A system for password-based bank authentication and AI-driven payment transactions, wherein the system (100) comprises: a module (1) for registering and managing password credentials, configured to generate, register, and manage a bank user's device-bound password using public-key cryptography; a device-bound module (2) for biometric / local verification, configured to verify the bank user locally on a user device without transmitting biometric credentials to a bank server; a cryptographic challenge-response module (3) for bank authentication, configured to authenticate a bank session by validating a digitally signed authentication challenge generated between the user device and the bank server;a computer-driven transaction risk assessment engine (4) configured to analyze payment transaction parameters, user behavior, device attributes, geolocation, transaction history, and the merchant's risk profile to generate a real-time risk assessment; an adaptive payment authorization and routing module (5) configured to approve, restrict, withhold, reject, or redirect a payment transaction based on the real-time risk assessment and predefined banking policies; a secure transaction signing and immutable audit trail creation module (6) configured to cryptographically link the authenticated user, transaction data, timestamp, and device identity into a signed transaction record;and a module (7) for regulatory compliance, alerts and recovery, configured to generate compliance logs, fraud alerts, user notifications and secure account recovery workflows.