The Use of Artificial Intelligence in Banking Indu
The Use of Artificial Intelligence in Banking Indu
The Use of Artificial Intelligence in Banking Indu
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INTRODUCTION
The fourth industrial revolution, also called Industry 4.0, is a transformation of the economy
and society in combination with intelligent robotics, AI, cloud computing, the Internet of Things
(IoT), and other scientific breakthroughs (Hassoun et al., 2022). To able to stay competitive and
avoid going out of business because of global competition and the problem's growing complexity,
there is a need to adapt to current technology (Kotabe & Helsen, 2022). In Industry 4.0, every work
is involving technology, including accounting, distribution, marketing, supply chain, etc (Fig 1). It
needs a lot of time and effort to work on such big data without an integrated system that helps user
to process the data. Automation can be produced by IoT devices by allowing them to connect with
Intense rivalry exists for products and services in the financial sector [1]. The first ATM, SMS
banking, m-banking, and internet banking all faced rivalry in the past(Dzombo, Kilika, & Maingi,
2017). With the introduction of the Internet in the late 1990s, the realization of financial transactions
began(Machkour & Abriane, 2020). The development of smartphones, however, marks the true
acceleration of access to the Internet(Xie, Zhang, & Zhu, 2017). The creation of new technologies
that are highly regarded in the financial industry is the result of technology advancements(Bisht et
al., 2022). The usage of QRIS payment, internet banking, and virtual account are a few examples
on how information technology enhances transaction process in banking industry(Anderson et al.,
2019).
The most important aspects of this essay are its discussion of how artificial intelligence might
benefit banking industry.
METHODS
The present literature on artificial intelligence (AI) in the banking industry was examined in
this study using a systematic literature review. The research process is ilustrated in Fig 2. The
research conducted a detailed and methodical process to discover, select, and assess relevant
research from a variety of sources, including academic journals, conference proceedings, and other
scholarly publications. Many electronic databases, including Web of Science, Scopus, and Google
Scholar, were utilized to conduct the search.
For the research to be considered, inclusion criteria were established, such as a focus on AI
in the banking industry and publication in English-language journals or conferences. Exclusion
criteria, such as studies that did not fit the inclusion requirements and those that were duplicates or
irrelevant to the topic, were also developed. Following the initial search, a screening procedure was
done to assess the relevancy of each study based on its title, abstract, and keywords. The studies
that met the inclusion requirements were then subjected to a full-text analysis, and their quality was
evaluated using predetermined criteria, such as the relevance of the research issue, the validity of
the methodology employed, and the credibility of the results.
Data extraction was undertaken to collect and evaluate pertinent data from the selected
publications, such as the publication year, the study design, the research question, the
The study assessed the effectiveness of numerous classic AI models, such as logistic regression,
SVM, and MP, in determining credit card eligibility. The model with the highest accuracy, as shown
in Table 2, was logistic regression, with an accuracy of 80.43 percent. SVM and MP followed with
accuracy values that were lower.
CONCLUSION
Industry 4.0 has had a substantial impact on the socioeconomic state of society and has
revolutionized a variety of industries [10]. The financial industry is not an exception; practitioners
and researchers have utilized AI-based technologies to enhance numerous business operations. The
artificial intelligence movement has greatly improved e-finance, as previously manual or statistical
model-based tasks have evolved into more intelligent, autonomous, and predictive ones
The research covered in this paper shows the efficacy of several machine learning algorithms
in the banking sector based on previous research. Wu et al. (2021) reported that logistic regression
was the most efficient approach for assessing credit card eligibility, whereas Le & Viviani (2017)
found that artificial neural networks (ANNs) were the best accurate method for forecasting bank
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