The Role of Artificial Intelligence in Advancing Sustainable Banking and Service Efficiency in Nigerian Financial Institutions: An Assessment of Selected Quoted Banks

Abstract

The rapid growth of human reasoning impacts the sustainability and
efficiency of the banking industry globally, including in Nigeria. Many banks
have used technology and creativity to improve service efficiency and revenue
sustainability due to worries about the detrimental effects of human
intelligence. Our research analyses how AI integration influences sustainable
banking and service efficiency in selected Nigerian listed banks. Natural
language processing, machine learning, and predictive analytics are
revolutionising banking. In addition, risk management, fraud detection,
customer service, and operational automation applications create data
privacy, ethical, and regulatory compliance issues, though they are efficient
and cost-effective. According to a cross-sectional study of clients from five
Nigerian deposit money banks: Access Bank Plc, Fidelity Bank Plc, First
Bank Plc, Guarantee Trust Bank Plc, and Zenith Bank Plc, 384 individuals
completed the self-administered questionnaire SAQ. In this study, the
following methods were used: mean, standard deviation, skewness, kurtosis,
Jarque Bera, correlational analysis, and OLS regression. The researchers
observed that AI awareness, application, and effectiveness have an impact on
the service efficiency of a subset of Nigerian quoted deposit money banks.
Finance firms in Nigeria use AI to improve productivity and client happiness
as one suggestion was to automate tedious tasks for bank services. However,
government regulations restrict Nigerian banks' AI usage. To bridge these
gaps, the paper recommends banking AI regulations, infrastructural
development, education, training, and monitoring. The paper also
recommends that Nigerian officials automate identity verification and risk
assessment to speed up procedures. Overall, there should be strong
sustainability, security, and privacy laws to promote economic and social
objectives.