The Necessity of Artificial Intelligence in Banking: A Literature Review

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@article{1706101,
      author = {Agbalaja, Kayode Eric},
      title = {The Necessity of Artificial Intelligence in Banking: A Literature Review},
      journal = {Iconic Research And Engineering Journals},
      year = {2024},
      volume = {8},
      number = {2},
      pages = {99-105},
      issn = {2456-8880},
      url = {https://www.irejournals.com/formatedpaper/1706101.pdf},
      abstract = {The manifold digital innovations and technological advancements in traditional banking came quickly due to changing customer expectations, thanks to the FinTech companies that sprung up the general digitalisation of developing and developed societies. In retrospect, the significant move to the digital economy has been a win for everyone involved: financial inclusivity, customer retention, easier fraud detection and a faster economy. Artificial Intelligence (AI) is transforming multiple industries, including banking. This paper explores the essential role of artificial intelligence (AI) in the banking industry, focusing on improving customer experience, enhancing operational efficiency, reducing risks, and promoting innovation. This study examines the current use of AI in banking and predicts future developments, emphasising AI's crucial role in influencing the banking industry's future. Artificial Intelligence (AI), from its inception, has inspired the idea of many technologies that are in place at present. In recent times, integrating artificial intelligence in banking is necessary to gain a competitive advantage over modern banks and FinTechs and avoid complacency. While AI is not a new aspect of technology, the recent 2022 boom in its use has exposed more opportunities than ever before. This makes it imperative for the banking sector to adopt some of its uses, for example, early fraud detection, 24/7 customer support, personalized banking services, unbiased credit scoring, financial advisory services, and real-time digital payment solutions. This study reviews the necessity for integrating AI in banking, focusing on possible applications, current use cases and potential risks and challenges in adopting artificial intelligence. This paper concludes that while the benefits outweigh the risks, provided measures are in place, it is essential for banks looking to adopt AI-based solutions to perform extensive research.},
      keywords = {Artificial intelligence, Banking, Digitalisation, Adoption, FinTech.},
      month = {August},
  }