Big Data and Artificial Intelligence in the Banking Industry

Yu, Tianhao; Song, Xuehu

doi:10.1142/9789811202391_0117

Cited by 17 publications

(11 citation statements)

References 0 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Good management of credit risk is inextricably connected to the improvement of banking technology, which will enable increasing decision-making; concurrently lower the price of managing credit risk. This requires a total foundation of contractors and partners (Yu & Song, 2020). Credit risk is one of the substantial chances of banks by the dynamics of their activities.…”

Section: Theoretical Literaturementioning

confidence: 99%

How Banks Can Leverage Credit Risk Evaluation to Improve Financial Performance

Isenberg

Sazu

Jahan

2022

CBR

View full text Add to dashboard Cite

The research aims to examine the impact of credit risk evaluation on the financial performance of American and European commercial banks during the period 2017-2021. A set of 37 commercial banks were selected to represent the entire banking industry of those two continents. To measure this relationship, two mathematical models were created. Research has revealed that credit risk evaluation influences the financial performance of the American and European commercial banks as represented by ROE and ROA. The study also concludes that the credit risk evaluation indicators analyzed in this study have a substantial effect on the financial performance of American and European commercial banks. The study suggests banks enhance their credit risk evaluation to generate more profits. It also cites the indicators of non-performing loans or gross loans, provision for facilities loss/net facilities, as well as the leverage ratio as significant in determining credit risk evaluation. Banks must put together strategies that will not only limit the banks' exposure to credit risk, but also enhance the banks' performance, as well as competitiveness. Further research can be conducted in developing nations to understand the impact of credit risk evaluation in such economies.

show abstract

Section: Theoretical Literaturementioning

confidence: 99%

How Banks Can Leverage Credit Risk Evaluation to Improve Financial Performance

Isenberg

Sazu

Jahan

2022

CBR

View full text Add to dashboard Cite

show abstract

“…Millions of transactions are recorded by banking sector every day so the collection and registration of huge volume of information becomes an overwhelming task for employees, hence creating vagueness about the relationship of collected data of thousands of clients (Yu & Song, 2020). Such data is collected and analyzed by AI based apps smoothly in order to improve the user's experience.…”

Section: Mobile Bankingmentioning

confidence: 99%

“…AI based monitoring and surveillance systems are quite effective against such security issues as they can analyze clients' behavior, financial habits, location and activate a security mechanism if any unusual activity is detected. Therefore, banks are rightly increasing their investments in AI and cyber security analytic programs (Yu & Song, 2020).…”

Section: Data Securitymentioning

confidence: 99%

“…Although humans are also involved in such investment decisions, AI based systems are unveiling additional opportunities through enhanced modeling and discovery. Moreover, such services like robot-advisers offered by many banks also facilitate customers in their portfolio management by providing higher quality assistance about investment decisions and accessibility according to the convenience of customers (Yu & Song, 2020).…”

Section: Automated Investment Processesmentioning

confidence: 99%

“…Therefore, it is evident that the implementation of AI based systems contributes successfully in the enhancement and up gradation of banking services, which would ultimately improve the quality of banking services as well as generate financial benefits for the banking industry. Studies including (Cavus et al, 2021;Kaur et al, 2020;Yu & Song, 2020) stated that the adoption and implementation of new technologies, such as AI helps bank in improving the quality of their services, reducing their costs and ultimately, improving revenues. Furthermore, by relying on the aforementioned findings, the study concludes that employees as well as clients of Jordanian banks have similar perspectives regarding the central role of AI in the enhancement of Jordanian banking system.…”

mentioning

confidence: 99%

See 2 more Smart Citations

Evaluating the Role of Artificial Intelligence in the Automation of the Banking Services Industry: Evidence from Jordan

Ali

Swiety²,

Mansour³

2022

View full text Add to dashboard Cite

Due to the necessity of using technology in the most of banking and financial services, the adoption of artificial intelligence (AI) has become one of the key drivers for financial institutions’ success. Financial institutions including banks implement AI based systems for the aim of meeting the needs of their clients. Although developing economies are bit slower in such adoption, however, they are still making their efforts. The current paper sheds the light on the role of AI in the enhancement of banking sector by exploring how AI based systems contribute in enhancing banking services and developing the trust of clients towards these services, so that developing economies could also adopt such advancements confidently. Consequently, after studying the Jordanian banking system through primary data, incorporating banking employees and clients, the study revealed that AI based systems conduct a central role in enhancing effective risk management, creating convenience, reducing costs and improving clients’ trust towards banking services. Moreover, the study induced that developing countries like Jordan should adopt and implement AI based systems in banking operations and services so that their banking sectors could play a more constructive part of their economies.

show abstract