The Impact of Artificial Intelligence on Digital Banking Performance: Evidence from the Modern Financial Services Industry
DOI:
https://doi.org/10.47067/ramss.v8i4.653Keywords:
Artificial Intelligence, Digital Banking, Banking Performance, Financial Services Industry, Customer Satisfaction, Machine Learning, Service Quality, Financial TechnologyAbstract
The current research examines the role of Artificial Intelligence (AI) in the performance of digital banking in the present scenario of financial services. The banking landscape and customer interactions have changed with the introduction of AI systems such as chatbots, machine learning models, fraud detection systems, and automated customer service. This study aims to investigate how implementation of AI will affect the efficiency and customer satisfaction, operational performance and service quality in digital banking systems. For the collection of data quantitative research design will be used in the banking customers and staffing of the banking institutions both public and private financial institutions. The major banking sectors in the urban areas of Punjab, Pakistan will be selected using stratified random sampling and a sample of 350 respondents from the selected banking sectors will be analyzed. The data will be collected by a structured format, Likert scale 5 point and analyzed using SPSS version 26. To analyses the relationship between Artificial Intelligence and the performance of digital banking, descriptive statistics and Pearson correlation and regression analysis will be used. The results indicate a significant positive correlation between the use of AI and the performance of banking (r = .51, p < .05), which means that the use of AI technologies is beneficial in banking operational efficiency, customer interaction, accuracy in transactions and banking service innovation. The study is expected to provide significant insights to financial institutions, policy makers and technologists about the strategic application of AI to enhance the digital banking services and competitive success in the financial services industry.
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