AI-driven banking services: the next frontier for a personalised experience in the emerging market

Abstract

PurposeArtificial intelligence (AI) is used by banking services primarily to automate systems; however, this ecosystem does not work in emerging markets because human intervention is needed, and there are concerns related to infrastructure. There is plenty of research on AI-mediated banking services, but the existing discussions are cumbersome, and studies on AI's service features in banking for emerging markets are limited. Furthermore, the ongoing discussions are centred on developed markets where automation in banking services is noteworthy and accepted. Through this paper, the authors emphasise the relevance of AI mediation in emerging markets and the possible role of strategising AI in banking services for personalised experiences.Design/methodology/approachThe authors' article followed an exploratory, inductive approach through in-depth interviews and thematic analysis. In total, 36 financial experts were interviewed, and the relevant perspectives were analysed to develop the research process and framework for a personalised banking experience.FindingsThe authors' paper introduced five key themes and presented those themes accordingly. The first theme details the importance of AI-mediated banking and the skills necessary for operational capacity. The second theme is on the relevance of AI-mediated banking awareness amongst users. The third is about channelling the importance of AI-driven interfaces through managers and employees. Fourth, the authors emphasised the relevance of human intervention due to users' demographic patterns. The fifth theme led to a discussion on personalised AI-mediated banking services.Research limitations/implicationsThe authors recommend that managers understand the relevance of quality service amongst users. The authors' paper discusses the relevance of AI and human intervention in banking services; however, the process for seamless, personalised banking experiences is not provided. Thus, this paper encourages managers to build a banking ecosystem that delivers a seamless banking experience through AI.Originality/valueThe authors' paper highlights the importance of human intervention in AI-driven banking by introducing personalised service experience elements and highlighting the role of customer experience in AI-driven banking services in emerging markets.

Redefining banks in the digital era: a typology of banks and their research, managerial and policy implications

“…In a separate study, Mogaji and Nguyen (2022a, b) explored the integration of AI in financial services marketing, providing insights into how banks are utilizing AI-driven strategies to enhance their marketing efforts. Furthermore, Sheth et al (2022) delved into the use of fintech by traditional banks to deliver personalized banking experiences, highlighting the transformative potential of fintech in shaping the customer journey within the banking industry. These studies collectively contribute to our understanding of how fintech is being adopted by traditional banks to drive innovation and improve customer experiences in the financial sector.…”

Digitalization and bank profitability: evidence from an emerging country

“…(2023) indicate that digitalized banks establish more online sale channels that helps to facilitate banks’ revenues by cross-selling bank services. Sheth et al. (2022) add that effective AI integration in banking business enhances banking processes and fosters service exclusivity.…”

“…Consistent with these arguments, Oikonomou et al (2023) indicate that digitalized banks establish more online sale channels that helps to facilitate banks' revenues by cross-selling bank services. Sheth et al (2022) add that effective AI integration in banking business enhances banking processes and fosters service exclusivity. Kwan et al (2021) suggest that during COVID-19 pandemic, customers are more likely to move to better IT-intensive banks.…”

Guest editorial: Artificial intelligence in financial services marketing

“…This special issue includes nine articles, and it is structured as follows: (1) the intersect of AI and political ideology in financial services marketing (Riedel et al , 2022; Cui, 2022), (2) financial robo-advisors (Bouhia et al , 2022; Northey et al , 2022), (3) developing AI for financial services marketing in emerging countries (Ghazwani et al , 2022; Omoge et al , 2022; Mogaji et al , 2021; Sheth et al , 2022) and (4) new theoretical and empirical approaches (Hentzen et al , 2021). Papers in each theme are subsequently discussed.…”

“…Furthermore, the authors establish that technology downtime acts as a boundary condition on technology usage, consumer buying behavior and customer satisfaction in a Nigerian banking context. Furthermore, Sheth et al (2022) explored AI-driven banking services for a personalized experience in an emerging market, and they emphasized the relevance of AI mediation in emerging markets. In addition, they reiterate the importance of human intervention in AIdriven banking by introducing personalized service experience elements and highlighting the role of customer experience in AI-driven banking services.…”