The Role of Artificial Intelligence in Optimizing Banking Services: An Analysis of Challenges and Future Opportunities
DOI:
https://doi.org/10.5281/zenodo.14563412Keywords:
Artificial Intelligence, Banking Services, Risk ManagementAbstract
Purpose – This study aims to investigate how Artificial Intelligence (AI) impacts the banking industry by increasing efficiency, customer service, revenue and competitiveness.
Design/data/methodology – In this study, a literature review was conducted, and an analytical methodology combining big data analysis and machine learning methods was employed to identify potential areas for improvement, such as analyzing financial behavior, improving risk management, and enhancing customer service through intelligent assistants. In this context, a survey was conducted with 35 participants. The data obtained were evaluated using quantitative analysis methods and supported by case studies from the banking sector.
Findings – The study highlights AI's effective role in reducing operational costs, increasing the accuracy of financial forecasts, and detecting fraud, leading to an overall improvement in the banking experience. It shows that AI represents a promising future for the banking sector but also identifies some challenges related to security and privacy, which require innovative solutions to ensure the sustainability and development of intelligent applications in this field. Despite potential risks such as the loss of some traditional jobs and cybersecurity challenges, the research demonstrates that the benefits outweigh the drawbacks when supported by appropriate infrastructure and conscious implementation.
Originality/value – This research, unlike general AI studies, focuses on its importance in banking services. The study examined how banking operations are conducted with AI, its impact on facilitating risk management, reducing costs, and increasing customer satisfaction.
References
Al Ali, A. (2021). The impact of information sharing and quality assurance on customer service at UAE banking sector. International Journal of Technology, Innovation and Management (IJTIM), 1(1), 01-17.
Al-Silmi, A. (2001). Strategic Human Resources Management. Daar Qiba'a for printing and publishing: Cairo.
Ansari, A., & Riasi, A. (2016). Modelling and evaluating customer loyalty using neural networks: Evidence from startup insurance companies. Future business journal, 2(1), 15-30. https://doi.org/10.1016/j.fbj.2016.04.001
Erdal, H. I., & Ekinci, A. (2013). A comparison of various artificial intelligence methods in the prediction of bank failures. Computational Economics, 42(2), 199-215. https://doi.org/10.1007/s10614-012-9332-0
Fernández, A. (2019). Artificial intelligence in financial services. Banco de Espana Article, 3, 19.
Future Today Institute (2017). Tech Trends annual report. (Available at: https://futuretodayinstitute.com/2017-tech-trends/)
Hussain, K. (2018). Artificial Intelligence and its Applications goal. Artificial Intelligence, 5(01), 838-841.
Isik O., Jones C., & Siorova A., (2013). Business Intelligence Success The Roles of BI Capabilities and Decision Environments. Information & Management, 50, 13- 23.
Kaya, O., Schildbach, J., AG, D. B., & Schneider, S. (2019). Artificial intelligence in banking. Artificial intelligence. EU Monitor, Global financial markets, Deutsche Bank Research.
Kshetri, N. (2021) Economics of Artificial Intelligence in Cybersecurity. IT Professional, 23, 73-77. https://doi.org/10.1109/mitp.2021.3100177
Lokeshnath, B., & Sandhya, M. (2023) .Insolvency And Bankruptcy Code: A Study of Indian Banks With Reference To Altman Z Score. EPRA International Journal of Economic and Business Review-Peer Reviewed Journal Volume, 11(8), 69-79. https://doi.org/10.36713/epra14205
McCarthy, J. (2007). What is artificial intelligence?’computer science department. Stanford University.
Mohammed, R.A.S.A. (2024). The Impact of Applying Artificial Intelligence Techniques on Operational Efficiency in Saudi Banks. Journal of University Studies for Inclusive Research, 17(35), 15682-15711.
Partanen, J., Mansouri Jajaee, S., & Cavén, O. (2017). Business Intelligence Within the Customer Relationship Management Sphere. Real-time Strategy and Business Intelligence: Digitizing Practices and Systems, 123-147.
Pilatin, A. (2024). Moderating role of big data usage in intellectual capital and innovation performance: evidence from Turkish banking sector. Journal of Intellectual Capital, 25(5/6), 891-913. 30. https://doi.org/10.1108/JIC-10-2023-0247
Rabie, D.R.M. (2023). The Future of Education with Artificial Intelligence and Machine Learning in the Arab World: A Systemat. Educational sciences,3, 1-35.
Raiter, O. (2021). Segmentation of Bank Consumers for Artificial Intelligence Marketing. International Journal of Contemporary Financial Issues, 1(1), 39-54. https://doi.org/10.17613/q0h8-m266
Russell, S. J., & Norvig, P. (2016). Artificial intelligence: a modern approach. Pearson.
Simon, (2018). A Future in Accounting without Human Intervention "A comparison of various artificial intelligence methods in the prediction of bank failures. Computational Economics, 42(2), 199-215.
Van Liebergen, B. (2017). Machine learning: a revolution in risk management and compliance? Journal of Financial Transformation, 45, 60-67.
Downloads
Published
How to Cite
Issue
Section
Categories
License
Copyright (c) 2024 SARA TABBAA
This work is licensed under a Creative Commons Attribution 4.0 International License.