IIARD International Institute of Academic Research and Development

Journal of Accounting and Financial Management (JAFM )

E-ISSN 2504-8856
P-ISSN 2695-2211
VOL. 10 NO. 8 2024
DOI: 10.56201/jafm.v10.no8.2024.pg459.476

---

Integration of Artificial Intelligence for Enhanced Personalized Banking Services

Oloto, Ngozi U.

---

Abstract

The integration of Artificial Intelligence (AI) into banking systems has been a transformative development, offering the potential to significantly enhance customer satisfaction and operational efficiency. This study explores the impact of AI-driven personalization on customer satisfaction, investigates data privacy and security challenges, and assesses the effectiveness of AI integration with existing banking infrastructure. Utilizing a survey of 133 banking professionals, the research reveals that a substantial majority of respondents experience positive outcomes from AI integration, with 71.4% noting improvements in customer satisfaction and 68.4% reporting enhanced operational efficiency. However, the study also identifies concerns regarding data security and various integration challenges, including technical compatibility issues and insufficient staff training. These findings highlight the need for banks to address these challenges through enhanced training programs, robust security measures, and strategic cost management to fully leverage the benefits of AI technologies. The results underscore the importance of continuous refinement and effective implementation strategies to maximize the positive impacts of AI while mitigating associated risks.

keywords:

AI, NLP, Personalized Banking, Machine Learning, Predictive Analytics, Chatbots & Customer Segmentation

---

References:

Angwin, J., Larson, J., Mattu, S., & Kirchner, L. (2016). Machine bias. ProPublica.
https://www.propublica.org/article/machine-bias-in-criminal-sentencing

Arner, D. W., Barberis, J., & Buckley, R. P. (2017). The evolution of fintech: A new post-crisis
paradigm? Georgetown Journal of International Law, 47(4), 1271-1319.

Arora, A., Bhardwaj, A., & Thakur, M. (2020). AI-driven personalization in financial services.
ScienceDirect. https://www.sciencedirect.com/science/article/pii/S0268401220300860
Baker, S.
(2020). Bank of America’s Erica: AI in banking. Forbes.
https://www.forbes.com/sites/bankofamerica/2020/04/15/erica-ai-in-banking/

Bauer, T., Faff, R., & Haider, J. (2022). The role of machine learning in banking. Journal of
Financial Services Research, 61(2), 181-201.

Bertino, E., & Sandhu, R. (2005). Database security – Concepts, approaches, and challenges. IEEE
Transactions on Knowledge and Data Engineering, 17(1), 1-21.

Bertsch, M., Rahn, H., & Schuster, B. (2021). AI in regulatory compliance: AML and KYC efforts.
Springer. https://link.springer.com/article/10.1007/s10203-021-00361-3

Bhattacharya, C., & Sinha, M. (2022). The role of artificial intelligence in banking for leveraging
customer experience. Australasian Accounting, Business and Finance Journal, 16(5), 89-
https://doi.org/10.14453/aabfj.v16i5.07

Black, R., & Clark, S. (2022). Data privacy in the age of artificial intelligence: Challenges and
solutions. Financial Technology Review, 12(3), 45-58.

Brown, T. (2023). The role of big data in modern banking. Journal of Financial Innovations, 8(1),
23-37.

Brynjolfsson, E., & McAfee, A. (2014). The second machine age: Work, progress, and prosperity
in a time of brilliant technologies. W.W. Norton & Company.

Chen, M., Mao, S., & Liu, Y. (2012). Big data: A survey. Mobile Networks and Applications,
19(2), 171-209.

Chui, M., Manyika, J., & Miremadi, M. (2018). The potential of AI in banking. McKinsey &
Company.
https://www.mckinsey.com/business-functions/mckinsey-digital/our-
insights/the-potential-of-ai-in-banking

Davis, J., & Green, L. (2023). Chatbots and virtual assistants: Transforming customer service in
banking. Tech Advances in Banking, 15(2), 89-104.

El-Gohary, H., Thayaseelan, A., Babatunde, S., & El-Gohary, S. (2021). An exploratory study on
the effect of artificial intelligence-enabled technology on customer experiences in the
banking sector. Journal of Technological Advancements (JTA), 1(1), 1-17.
https://dx.doi.org/10.4018/JTA.20210101.OA
Green, L., & Kim, D. (2024). The impact of AI chatbots on customer service efficiency in banking.
Journal of Banking Technology, 58(3), 122-135.

Hentzen, J. K., Hoffmann, A., Dolan, R., & Pala, E. (2022). Artificial intelligence in customer-
facing financial services: A systematic literature review and agenda for future research.
International Journal of Bank Marketing, 40(6), 1299-1336. https://doi.org/10.1108/ijbm-
09-2021-0417

Huang, G. Q., Lin, Y. J., & Wu, C. W. (2022). Artificial intelligence and personalized banking. In
Handbook of research on innovative management using AI in Industry 5.0 (pp. 74-87). IGI
Global. https://dx.doi.org/10.4018/978-1-7998-8497-2.ch005

Johnson, A., & Lee, M. (2021). AI in banking: From theory to practice. International Journal of
Banking Technology, 7(4), 112-125.

Johnson, O., & Martinez, D. (2024). AI in banking: Evaluating the effectiveness of predictive
analytics for customer insights. Financial Data Analysis, 47(2), 204-219.

Jiang, Y., Liu, Y., & Zhao, J. (2021). Algorithmic trading and AI: Market analysis and
optimization.
Science
Direct.
https://www.sciencedirect.com/science/article/pii/S0022103120301423

Joulin, A., Mikolov, T., Grave, E., Bojanowski, P., Mikolov, M., & M. (2017). Bag of tricks for
efficient text classification. arXiv preprint arXiv:1607.01759.

Malini, A., & Menon, D. G. (2017). Technological innovations in the banking sector in India: An
analysis. In 2017 International Conference on Technological Advancements in Power and Energy (TAP Energy) (pp. 1-5). IEEE.
https://doi.org/10.1109/TAPENERGY.2017.8397342

Mardanghom, R., & Sandal, H. (2019). Artificial intelligence in financial services: An analysis of
the AI technology and the potential applications, implications, and risks it may propagate
in financial services (Master’s thesis).

Miller, K. (2022). Machine learning in financial services: Applications and implications. Data
Science Review, 10(2), 76-91.

Nguyen, T., Hoang, T., & Wang, X. (2021). Predictive customer service using AI. SAGE Journals.
https://journals.sagepub.com/doi/10.1177/21582440211000506

Pfoertsch, W., & Sulaj, K. (2023). Integrating artificial intelligence with customer experience in
banking: An empirical study on how chatbots and virtual assistants enhance empathy. In
2023 International Conference on Computing, Networking, Telecommunications & Engineering Sciences Applications (CoNTESA) (pp. 69-74). IEEE.
https://doi.org/10.1109/CoNTESA61248.2023.10384979

Smith, J., & Lee, M. (2023). AI-driven personalization in retail banking: An empirical study.
International Journal of Banking Innovation, 42(1), 75-89.
Smith, R. (2022). Customer expectations and personalized banking services. Banking Trends,
11(3), 56-69.

Taylor, G. (2022). Predictive analytics and risk management in banking. Journal of Risk and
Financial Management, 14(1), 34-47.

Turner, E., & Brown, R. (2024). Enhancing customer experience through AI in banking: A
comparative study. Journal of Financial Services Research, 59(4), 311-326.

Voigt, P., & Von dem Bussche, A. (2017). The EU General Data Protection Regulation (GDPR).
Springer.

Vasarhelyi, M. A., Kogan, A., & Tuttle, B. (2020). The promise and challenges of artificial
intelligence in auditing. Journal of Information Systems, 34(3), 145-168.

White, A. (2023). Ensuring data security in AI-driven financial services. Cybersecurity and
Banking, 9(4), 25-39.

Williams, L. (2024). Operational efficiency through AI: A banking perspective. Financial
Operations Quarterly, 16(1), 42-59.

Wang, L., Zhang, L., & Zhang, H. (2021). Computer vision applications in banking: Automation
and security. IEEE. https://ieeexplore.ieee.org/document/9295163

Willcocks, L., Lacity, M., & Craig, A. (2018). Robotic process automation: The next
transformation lever for business services. Springer.
https://www.springer.com/gp/book/9781138636678

DOWNLOAD PDF

---

Back