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Transforming Banking Customer Service: A Detailed Exploration of AI Adoption with Lessons from European Countries

Author

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  • Maria-Emilia DINCULEANÄ‚

    (University of Craiova)

Abstract

This study explores the transformative impact of artificial intelligence (AI) on customer service in the banking sector, highlighting its role in improving operational efficiency and customer satisfaction. The adoption of AI technologies, particularly conversational agents such as chatbots, has revolutionised customer interactions by providing 24/7 support, automating routine queries and facilitating personalised banking experiences. The research examines critical factors influencing customer adoption of AI-powered services, including website design, brand image and customer satisfaction, as identified through empirical studies in different contexts, including the European banking sector. In addition, the study examines the ethical and regulatory challenges associated with the implementation of AI, highlighting privacy and security concerns and the need for robust regulatory frameworks to protect consumer interests. By examining real-world case studies from Europe and Romania, the research illustrates how different banking models are adapting to AI advances and the varying degrees of success achieved in improving the customer experience. Ultimately, the study provides valuable insights for policymakers and banking institutions on the strategies needed to harness the potential of AI while addressing the challenges it poses. The findings underscore the importance of balancing technological innovation with ethical considerations to ensure that AI serves as a tool to enhance customer relationships and operational practices in the evolving landscape of the banking industry.

Suggested Citation

  • Maria-Emilia DINCULEANÄ‚, 2024. "Transforming Banking Customer Service: A Detailed Exploration of AI Adoption with Lessons from European Countries," Finante - provocarile viitorului (Finance - Challenges of the Future), University of Craiova, Faculty of Economics and Business Administration, vol. 1(26), pages 138-159, November.
    • Handle: RePEc:aio:fpvfcf:v:1:y:2024:i:26:p:138-159
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    File URL: https://feaa.ucv.ro/finance/fisiere/revista/16584483209_DinculeanaM1.pdf
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    References listed on IDEAS

    as
    1. Toni Ahner & Katrin Assenmacher & Peter Hoffmann & Agnese Leonello & Cyril Monnet & Davide Porcellacchia, 2024. "The Economics of Central Bank Digital Currency," International Journal of Central Banking, International Journal of Central Banking, vol. 20(4), pages 221-274, October.
    2. Miguel Ángel Echarte Fernández & Sergio Luis Náñez Alonso & Javier Jorge-Vázquez & Ricardo Francisco Reier Forradellas, 2021. "Central Banks’ Monetary Policy in the Face of the COVID-19 Economic Crisis: Monetary Stimulus and the Emergence of CBDCs," Sustainability, MDPI, vol. 13(8), pages 1-18, April.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Artificial Intelligence (AI); Customer Service; Banking Sector; Customer Satisfaction; Ethical and Regulatory Challenges;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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