Abstract
This study investigated the impact of Rafaiki as an artificial intelligence of Eco Bank towards banking growth and operations in Nigeria. The study investigated three specific objectives from which three hypotheses were tested. The impact of artificial intelligence on customer satisfaction, quality service delivery and employee efficiency in the Nigerian banking sector was investigated in this study. This research work adopted a descriptive survey research design.
The data generated through a structured questionnaire were analysed using SPSS26. According to the findings of this study, there is a 0.993 estimated coefficient of association between AI and customer satisfaction in Nigerian banking, with a significant value estimate of 0.001. This suggests that, at a 5% level of significance, there is a very strong positive and significant correlation between these two variables. In other words, the usage of artificial intelligence in service delivery accounts for nearly 99% of customer satisfaction in the Nigerian banking sector, holding other variables constant. In the Nigerian banking industry, the strength of the correlation between artificial intelligence and the calibre of service delivery was estimated to be 0.996, with a significant value estimate of 0.007.
This suggests that, at a 5% level of significance, there is a very strong positive and significant correlation between these two variables. Accordingly, based on this empirical assessment, artificial intelligence accounts for around 99.6% of the level of service provided in the Nigerian banking industry. The Nigerian banking industry’s use of artificial intelligence and staff productivity was shown to be correlated at 0.985, with a significant value estimate of 0.002. At a 5% level of significance, this suggests that there is a very strong positive correlation between these two variables. In other words, the usage of artificial intelligence accounts for nearly 98% of staff productivity in the Nigerian banking industry. Based on the empirical and statistical analysis conducted for this study, the researcher concludes that the adoption of automated transactions and artificial intelligence has a significant impact on the quality of service delivery, customer satisfaction, and employee efficiency in the Nigerian banking sector.
CHAPTER ONE
INTRODUCTION
- Background of the Study
Business performance is essential for forecasting, determining, and assessing the rate or amount of growth and results in business organisations. A corporation’s performance, whether financial or otherwise, serves as a benchmark against which business stakeholders can assess the organization’s level of effectiveness, efficiency, total productivity, and profitability. Business-minded stakeholders have observed the influx of sophisticated technologies, mechanisms, and inventions aimed at improving business performance, supplanting business operations concerning human deficiencies, and introducing new ways of doing things, which are embedded in current issues within Artificial Intelligence, to stimulate and augment the performance of a firm. Emerging technologies are said to have great potential to transform the ways of living human lives and the business operating models of companies all over the world. It becomes important to study both the capabilities and limitations of machine intelligence and its potential impact on human life, society and business. (Koopmans et al., 2018).
Though the term “artificial intelligence” is so broad that it is difficult to define simply, it usually refers to a group of modelling techniques that combine one or more of the following: large data sets, unconventional (i.e., unstructured and changing) data, demonstrating complex relationships between variables, opaque (“black box”) models, and models with rapidly changing structures over time (Koopmans et al., 2018). Banks are integrating AI models to improve and accelerate decision-making, which will help them gain income or decrease costs. Customer segmentation, fraud detection, price optimization, compliance monitoring, and loss forecasting are only a few examples of areas where financial institutions have built models using a range of approaches such as clustering algorithms, deep neural networks, and sentiment analysis(Koopmans et al., 2018).
Financial Technology is defined by the Financial Stability Board (2017) as “technologically enabled financial innovations that may lead to new business models, applications, processes, or products with an associated material effect on financial markets and institutions and the provision of financial services. This progress in technology is also fueled by the enormous volume of data from customers and market participants with the automation as well as digitalization of fi Clearly, data explosion is the major enabler (Koopmans et al., 2018).
The potential uses of AI in banking are vast, and we anticipate that they will become increasingly apparent over the coming few years. According to research from the International Data Corporation, businesses will continue to invest heavily in AI solutions over the next years, with a compound annual growth rate of 54.4% expected until the year 2020. (Ramdani, Marliani, & Rahman, 2019). Financial services firms will be able to fundamentally reimagine how they work, how they develop cutting-edge goods and services, and how they improve client experiences thanks to artificial intelligence (Ramdani, Marliani, & Rahman, 2019).
Consequently, Artificial Intelligence (AI) is a byproduct of these developments. According to this notion, companies are very much a part of the technologies and inventions that appear to be the primary force behind a higher standard of living in the modern world today. They are not excluded nor are they in a bubble. The goal of the scientific and technology discipline of artificial intelligence (AI) is to create machines that can think, see, hear, walk, talk, and, intriguingly, feel like humans. The development of computer abilities typically associated with human intelligence, such as reasoning, learning, and problem-solving, is a key focus of artificial intelligence (Ramdani, Marliani, & Rahman, 2019). Regarding the potential existence of intelligent thinking computers, intriguing questions abound. For instance, British AI pioneer Alan Turing suggested a test to determine if robots could reason in 1950. The Turing test states that a computer can show intelligence if a human interviewer who is interacting with an unseen person and an unseen computer is unable to distinguish between the two when given both circumstances (Ramdani, Marliani, & Rahman, 2019).
Intelligent machines and cutting-edge technologies have revolutionised corporate change. These machines are programmed to be able to carry out operations that, until recently, could only be carried out by humans with specialised knowledge, unique skills, and in-depth training. Right now, the modern era and corporate world represent the most fascinating time in human history. Inventions, ideas, and technical advancements are happening now very quickly. Specialized security cameras, robots working in the workplace, self-driving cars, machines conducting business, and many more are gradually becoming commonplace, ushering in some of the technological advancements made possible by the development of artificial intelligence (Farhi, 2017).
Self-driving cars, specialised security cameras, robots working in the workplace, and many other technical improvements made possible by the development of artificial intelligence are progressively becoming ubiquitous (Farhi, 2017).
Research has revealed that technological improvement can interact with labour to raise employment in some sectors and occupations of work while diminishing it in other sectors and occupations. This represents further advancement since the turn of the century (Adeyemi, Ola, & Oyewole, 2018). Although the primary goal of AI was to replace human labour to increase efficiency by reducing labour costs, the emphasis has since changed to greater cooperation between humans and machines (Akkucuk & Teuman, 2019).
Because most CEOs, managers, and employers believe that machines help reduce labour costs and do not demand wage increases, can work long hours, and can perform multiple tasks that the majority of humans cannot possibly do, workers around the world have various points rejected AI out of fear of losing their jobs, with only a small percentage of workers embracing it as a complement to work processes (Brill, Munoz, & Miller, 2019).
- Statement of the Problem
Many businesses have incorporated technology use into their daily operations. The way businesses are conducted has changed as a result of the usage of technology over time, and organisations are now attesting to the usefulness and significance of artificial intelligence in the performance of their operations and job execution. Various scholars have empirically assessed how artificial intelligence affects company success (Castelli, Manzoni, & Popovic, 2020). The focus of these earlier studies is on mixed results, and the dependent variables are financial performance indicators. A lack of literature on the subject is also likely because artificial intelligence is still a relatively new field in this region of the world. Additionally, this research gave attention to robotics, job-related aspects, intelligent algorithms, health and safety concerns, data security, and financial goals. Therefore, there is a need to address a gap that adequately and thoroughly analyses how artificial intelligence influences an organization’s non-financial performance objectives.
1.3Â Â Â Â Â Â The objective of the Study
This study’s main objective is to investigate Rafiki’s inartificial intelligence of Eco Bank towards banking growth and operation in Nigeria. Specific objectives of this study include to:
- Determine whether artificial intelligence enhances customer satisfaction in the Nigerian Banking industry.
- Investigate the effect of artificial intelligence on the quality-of-service delivery for customers in the Nigerian Banking industry.
- Examine the impact of artificial intelligence on employee efficiency in the Nigerian Banking Industry.
- Research Questions
The following research questions came up in this study:
- Does artificial intelligence enhance customer satisfaction in the Nigerian banking industry?
- is there any effect of artificial intelligence on the quality-of-service delivery for customers in the Nigerian Banking industry?
- Does artificial intelligence impact employee efficiency in the Nigerian Banking Industry?
1.5 Research Hypothesis
The research hypotheses for this study are given below:
Null Hypotheses(H0):
- Artificial intelligence does not enhance customer satisfaction in the Nigerian banking industry.
- Artificial intelligence does not have effects on quality service delivery for customers in the Nigerian banking industry.
- Artificial intelligence does not Impact employees’ efficiency and job satisfaction in the Nigerian banking industry.
Alternative Hypotheses(H1):
- Artificial intelligence does not enhance customer satisfaction in the Nigerian banking industry.
- Artificial intelligence does not have effects on quality service delivery for customers in the Nigerian banking industry.
- Artificial intelligence does not Impact employees’ efficiency and job satisfaction in the Nigerian banking industry.
- Significance of the Study
Students and academics in the subject of banking and finance will benefit from the addition of this study’s reviewed material to their existing knowledge. A guide for policy implementation and banking operations would be provided to stakeholders in the Nigerian banking sector by the recommendations made in this report based on the empirical analysis performed. The study’s conclusions will give Nigerian commercial banks guidance on how to use artificial intelligence to enhance service delivery.
- Scope of the Study
This study concentrated on the effects of Eco Bank’s Rafiki artificial intelligence on the development and operation of banking in Nigeria. The report also discusses how artificial intelligence affects consumer happiness in the Nigerian banking sector, how it affects the quality of customer service provided in the Nigerian banking industry, and how it affects employee productivity in the Nigerian banking industry.
- Limitations of the Study
Numerous reasons that ultimately limit the scope of the study’s coverage imposed restrictions on it. First off, it was difficult to find academic research papers from the past that related to the topic of this study both offline and online. The time allotted for this study’s completion also limited the extent to which the research could find the pertinent material and information required for this study’s completion. Some of the participants in this study’s research were unwilling to offer the details required for its analysis.
- Definition of Terms
Artificial intelligence (AI): intelligence—perceiving, synthesizing, and inferring information—demonstrated by machines, as opposed to intelligence displayed by non-human animals and humans.
Employee: a person conducting a business or undertaking (PCB) and is usually hired to perform specific duties which are packaged into a job.
Customer satisfaction: a term frequently used in marketing. It is a measure of how products and services supplied by a company meet or surpass customer expectations.
Efficiency: the often-measurable ability to avoid wasting materials, energy, effort, money, and time in doing something or in producing a desired result. In a more general sense, it is the ability to do things well, successfully, and without waste.
Job performance:  assesses whether a person performs a job well. Job performance studied academically as part of industrial and organizational psychology, also forms a part of human resources management. Performance is an important criterion for organizational outcomes and success.
Quality of service (QoS): the description or measurement of the overall performance of a service, such as a telephony or a computer network, or a cloud computing service, particularly the performance seen by the users of the network.
1.10 Organisations of the Study
There are five chapters in this study, the first of which discusses the background, statement of the research problem, aims, research question, and research hypotheses as well as the study’s significance, scope, and limitations. Chapter 2 contains conceptual, theoretical, and empirical reviews. The study methodology is covered in Chapter 3. This chapter covers the research design, the study’s population, the sample size and methodology, the data collection source and method, the study’s instruments, the data analysis method, and the validity and reliability of the study. Chapter four covers data presentation, data analysis and discussion of findings. Chapter five encompasses the summary, conclusion and recommendations.
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