The Role Of Artificial Intelligence In Shaping Customer Experiences In The Banking Sector

Abstract

  AI in banking is the use of artificial intelligence technology in the financial sector to improve operations, client experiences, and drive innovation. In our study uses a varied sample of 152 respondents to investigate customer preferences and opinions of AI in banking. Aged 26 to 35, the majority of respondents were male (66.4%), with women making up 33.6% of the sample. 60.5% of the workforce had a master's degree, and 59.9% were employed in the private sector. Of those with incomes, 48% made between INR 51,000 and INR 1,00,000. The fact that 78.9% of them had private bank accounts was an important discovery. 48.7% of respondents utilised AI-powered banking services on rare occasions, while 33.6% used them on a regular basis for basic activities such as balance enquiries. The study's Cronbach's Alpha scores demonstrated great consistency in assessing AI's function in customer service and fraud detection. Respondents praised AI for speedier customer service and personalised banking, although many preferred human interventions in areas such as fraud detection (88%) and loan services (85%). AI's involvement in risk management and fraud detection was well supported, with significant t-test findings and large confidence intervals. However, respondents were less confident of AI's effectiveness in loan and credit risk assessment, with an average score of 3.14. Despite the benefits, 43% of respondents felt uneasy about sharing personal financial information with AI systems. The main reasons for using AI were transaction speed (98%) and 24/7 availability (85.7%).