Academy of Strategic Management Journal (Print ISSN: 1544-1458; Online ISSN: 1939-6104)



Author(s): Neha Garg

Introduction- The role of AI in banking is currently increasing as it brings the power of advanced data analytics to combat fraudulent transactions and improve compliance. AI models accomplish anti money laundering in few seconds and also analyse huge volume of data at record speed to derive valuable insights. Objective- The study aims to systematically review the diverse application of AI (Artificial Intelligence) in banking sector and understand its impact on customer service, employee productivity and bank performance. Research Methodology – This systematic literature review has been conducted in accordance with the Preferred Reporting Items for Systematic Reviews and Meta analyses (PRISMA). We studied articles from 2007 to 2022 from database such as Google scholar, Web of Science, Scopus, Science direct, Elsevier and other reputed journals while using search words like artificial intelligence, banking, emerging technology, machine learning, banking applications, bank performance, customer satisfaction. Authenticated research papers in English with full text available are included in research. Meta-analysis could not be implemented due to wide variability in design. At last, we descriptively summarised the final articles in ten tables. Result- Initially, a total of 108 titles were identified, 31 duplicate entries were found. 87 publications were considered for abstract reading after manually screening of all titles. Finally, 46 studies were included for systematic review study who met the inclusion criteria. The review data supported the findings that AI can play a crucial role in the area of finance specially banking for instance it can be used for identification of fraudulent transaction, managing customer wealth, and in managing credit risk of loan portfolio. Conclusion- Studies revealed that there are numerous artificial intelligence applications in banking boosting customer satisfaction mainly chatbot, wealth management, robo advisors, and also applications which benefited bank employees such as predictive analysis, cyber security and risk management. AI with different frameworks can help bankers to diagnose and manage frauds with greater accuracy. Banks should focus more on implementation of various AI use cases that can enhance customer retention and also add new customers. In future, artificial intelligence banking applications shall play crucial role in the growth of bank’s financial and non-financial parameters

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