Artificial Intelligence in Daily Banking and Finance: Transforming Customer Experience and Operational Excellence

Ida Ayu Agung Paramitaswari; Ida Bagus Swaputra

Authors

Ida Ayu Agung Paramitaswari Finance and Banking Study Program Denpasar Academy of Finance and Banking AKABA, Indonesia Author
Ida Bagus Swaputra Management Study Program, STIMI Handayani Denpasar, Indonesia, Indonesia Author

Keywords:

Artificial Intelligence, Banking Technology, Fraud Detection, Robo-advisors, Financial Services, Machine Learning, Customer Experience

Abstract

Artificial intelligence (AI) has fundamentally transformed the financial services landscape, particularly in daily banking operations and customer interactions. This study examines the current state and emerging applications of AI technologies in the banking sector, focusing on practical implementations that directly impact both financial institutions and individual customers. Through a comprehensive literature review of 95 peer-reviewed articles published between 2022 and 2025, this research identifies key AI technologies including natural language processing, deep learning, graph machine learning, and reinforcement learning that are reshaping banking services. The findings reveal that AI-powered applications such as intelligent chatbots, fraud detection systems, automated credit scoring, and personalized financial advisors have significantly enhanced operational efficiency and customer experience. Specifically, advanced fraud detection systems using graph embeddings achieve F1 scores of 67.1%–73.4%, while explainable AI models for ATM fraud detection demonstrate AUC values of 0.963. However, challenges including data privacy, model explainability, regulatory compliance, and algorithmic bias remain significant barriers to adoption. This research contributes to the understanding of AI's practical applications in banking and provides insights for financial professionals at institutions like Akademi Keuangan dan Perbankan Denpasar to prepare for the AI-driven future of financial services

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