Open Access Open Access  Restricted Access Subscription Access

Transformation Aeon : Artificial Intelligence Powered Banking


Affiliations
1 Assistant Professor, Post Graduate Department of Commerce, Immaculate College for Women, (Affiliated to Thiruvalluvar University), Cuddalore – 607 001, Tamil Nadu, India
2 Assistant Professor, Post Graduate and Research Department of Commerce, St. Joseph’s College of Arts and Science (Autonomous), (Affiliated to Thiruvalluvar University), Cuddalore – 607 001, Tamil Nadu, India
3 Associate Professor, Department of Management Studies, Karunya Institute of Technology and Sciences, Coimbatore – 641 114, Tamil Nadu, India

   Subscribe/Renew Journal


“Machine learning is the last invention that humanity will ever need to make” – Nick Bostrom. Banks are the backbone of financial system. The present technological advancement and the tremendous growth of information technology had bought a drastic transformation in the banking sector. The banking sector in India can be broadly be classified as banking companies, non-banking companies, and the regulatory institutions which regulates them. Though the automation of banking sector is at a nascent stage, the technology is observed to creep into every corner. It has been envisaged that the technological growth of banking helps in improved customer centric services, reduction of fraudulent risks, attainment of financial inclusion, and even more secured operations. Automation has facilitated a direct human involvement. Think about a virtual agent such as Siri, Alexa, Google home which helps us to get solutions instantly. Likewise, AI powered banking may enable a computer system to observe sense, interpret, evaluate, and interact as similar to humans. Thus, this paper tries to analyze the growth rate of Fintech in terms of the application of AI and proliferation of digitalization in banking which could enable relationship banking. Furthermore, the era of financial technology could be a wide opportunity of innovation and automation if AI undergoes a rapid and increased change of reality for financial institutions.

Keywords

Automation, Artificial Intelligence, Banking, Fintech, Technology.

JEL Classifications : G10, G15, M10, M20, M30.

Manuscript Received : June 2, 2021 ; Revised : July 6, 2021 ; Accepted : July 10, 2021. Date of Publication : August 5, 2021.

User
Subscription Login to verify subscription
Notifications
Font Size

  • D. Parsons, C. C. Gotlieb, and M. Denny, “Productivity and computers in Canadian banking,” in Productiv. issues in services at the micro level, Z. Griliches and J. Mairesse (Eds.). Boston, MA : USA : Kluwer, 1993.
  • J. V. D. Burgt, “Explainable AI in banking,” J. of Digital Banking, vol. 4, no. 4, 2020.
  • D. Latimore, “Artificial intelligence in banking,” Celent, 2018. [Online]. Available: https://cdn2.hubspot.net/hubfs/2392451/Marketing%20Assets/Artificial%20Intelligence%20in%20Banking%20-%20Where%20to%20Start.pdf
  • S. Goudarzi, E. Hickock, and A. Sinha, “AI in banking and finance,” The Centre for Internet and Soc., India, 2018.
  • Infosys, “Artificial Intelligence powered banking,” 2017. [Online]. Available: https://www.edgeverve.com/wp-content/uploads/2018/12/Artificial-Intelligence-Powered-Banking-PoV.pdf [6] “Banking on the future: Vision 2020,” (n.d.), Deloitte & Confederation of Indian Industry, India.
  • “Artificial Intelligence and digital banking,” Mapa, India, 2016.
  • M. Sabharwal, “The use of Artificial Intelligence (AI) based technological applications by Indian Banks,” Int. J. of Artificial Intell. and Agent Technol., vol. 2, no. 1, p. 1–5, 2014.
  • H. E. Nosratabadi, A. Nadali, and S. Pourdarab, “Credit assessment of bank customers by a fuzzy expert system based on rules extracted from association rules,” Int. J. of Mach. Learning and Computing, vol. 2, no. 5, pp. 662–666, 2012. [Online]. Available: http://www.ijmlc.org/papers/210-L323.pdf
  • P. Arora, “Where smart banking meets AI,” [Online]. Available: https://www.accenture.com/in-en/insights/banking/smart-banking-ai. Accessed on: April 21, 2020.
  • Youth Ki Awaz, “Future of Artificial Intelligence in the banking sector,” [Online]. Available: https://www.youthkiawaaz.com/2019/07/future-of-artificial-intelligence-in-banks. 2019.
  • A. R. Begum and I. Savarimuthu, “Fostering employee experience through work engagement in the epoch of Artificial Intelligence,” J. of Xidian University, vol. 14, no. 4, pp. 742–752, 2020. [Online]. Available: https://doi.org/10.37896/jxu14.4/091
  • “Success with AI in banking hinges on the human factor,” The Financial Brand, 2018. [Online]. Available: https://www.livemint.com/AI/v0Nd6Xkv0nINDG4wQ2JOvK/Artificial-Intelligence-in-Indian-banking-Challenges-and-op.html. Accessed on: April 20, 2020.
  • J. Emsley, “An intelligent future for banking processes,” [Online]. Available: https://www.bcsconsulting.com/blog/an-intelligent-future-for-banking-processes/. Accessed on: April 19, 2020.
  • A. Sundar, “How the banking industry benefits from AI,” 2018. [Online]. Available: https://dzone.com/articles/how-the-banking-industry-benefits-from-artificial

Abstract Views: 97

PDF Views: 0




  • Transformation Aeon : Artificial Intelligence Powered Banking

Abstract Views: 97  |  PDF Views: 0

Authors

A. Rucksar Begum
Assistant Professor, Post Graduate Department of Commerce, Immaculate College for Women, (Affiliated to Thiruvalluvar University), Cuddalore – 607 001, Tamil Nadu, India
R. Rajkumar
Assistant Professor, Post Graduate and Research Department of Commerce, St. Joseph’s College of Arts and Science (Autonomous), (Affiliated to Thiruvalluvar University), Cuddalore – 607 001, Tamil Nadu, India
R. Amudha
Associate Professor, Department of Management Studies, Karunya Institute of Technology and Sciences, Coimbatore – 641 114, Tamil Nadu, India

Abstract


“Machine learning is the last invention that humanity will ever need to make” – Nick Bostrom. Banks are the backbone of financial system. The present technological advancement and the tremendous growth of information technology had bought a drastic transformation in the banking sector. The banking sector in India can be broadly be classified as banking companies, non-banking companies, and the regulatory institutions which regulates them. Though the automation of banking sector is at a nascent stage, the technology is observed to creep into every corner. It has been envisaged that the technological growth of banking helps in improved customer centric services, reduction of fraudulent risks, attainment of financial inclusion, and even more secured operations. Automation has facilitated a direct human involvement. Think about a virtual agent such as Siri, Alexa, Google home which helps us to get solutions instantly. Likewise, AI powered banking may enable a computer system to observe sense, interpret, evaluate, and interact as similar to humans. Thus, this paper tries to analyze the growth rate of Fintech in terms of the application of AI and proliferation of digitalization in banking which could enable relationship banking. Furthermore, the era of financial technology could be a wide opportunity of innovation and automation if AI undergoes a rapid and increased change of reality for financial institutions.

Keywords


Automation, Artificial Intelligence, Banking, Fintech, Technology.

JEL Classifications : G10, G15, M10, M20, M30.

Manuscript Received : June 2, 2021 ; Revised : July 6, 2021 ; Accepted : July 10, 2021. Date of Publication : August 5, 2021.


References





DOI: https://doi.org/10.17010/ijcs%2F2021%2Fv6%2Fi3-4%2F165409