Human-centred artificial intelligence in the banking sector

• Main Authors: OBUCHETTIAR, Krishnaraj Arul, MEGARGEL, Alan @ Ali MADJELISI
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2023
• Subjects: Artificial intelligence; ethics; bias; transparency; customer experience; banking; Artificial Intelligence and Robotics; Finance and Financial Management
• Online Access: https://ink.library.smu.edu.sg/sis_research/7823; https://ink.library.smu.edu.sg/context/sis_research/article/8826/viewcontent/JDB_7_3_JDB0006_Krishnaraj_Arul_and_Megargel.pdf
• Institution: Singapore Management University

Changes in technology have shaped how corporate and retail businesses have evolved, alongside the customers’ preferences. The advent of smart digital devices and social media has shaped how consumers interact and transact with their financial institutions over the past two decades. With the rapid evolution of new technologies and customers' growing preference for digital engagement with financial institutions, organizations need to adopt and align with emerging technologies that support speed, accuracy, efficiency, and security in a user-friendly manner. Today, consumers want hyper-personalized interactions that are more frequent and proactive. Moreover, financial institutions have a growing need to cater to consumers' new demands. Financial institutions, such as banks, continuously adapt to the latest technologies to keep pace with evolving customer behaviours, needs, and experiences. One such emerging technology is Artificial Intelligence (AI). Many organizations realize the potential of AI. However, a human-centered AI system must be capable of understanding human characteristics and making decisions like humans. This paper aims to help banks understand the importance of deriving and processing customer emotions from the unstructured data captured from various omni-channels to develop full-fledged human-centered AI-enabled products and services, with emphasis on practicing a co-development mindset between the key stakeholders (Banks, IT vendors, and Focus Groups). In addition, this paper proposes a framework for banks to adopt and stay competent in the digital transformation journey.