Exploring artificial intelligence in the South African banking industry

Abstract

The introduction of artificial intelligence in the banking industry in South Africa has influenced how banks should function and how they operate. The digital advancements in the banking industry are implemented for the sole purpose of trying to remain competitive, make profits, efficiency, and better customer services. The implementation of artificial intelligence systems and robots posed more beneficial for banks, for the management, employees and customers. These artificial intelligence systems include chats, algorithms creation, cloud computing and data capturing. Managers are responsible for managing organisations effectively by training and re-skilling employees, and with all these digital advancement changes in the work environment, organisations need effective guidelines and tools. There have been many studies conducted on artificial intelligence in banking internationally, but no extensive research has been done in South Africa regarding this phenomenon. The purpose of this research project was to explore artificial intelligence in the South African banking industry and to gain an understanding regarding the influence artificial intelligence has on the banking industry. The research approach that was followed in this study was qualitative and phenomenological. Semi-structured interviews were conducted with 12 research participants. A purposive sampling method was followed during data collection. A tape recorder was used to capture the data during the interviews. Thematic analysis was employed to analyse and interpret data. The results indicated that artificial intelligence in banks is being used in back (underwriting), middle (anti-fraud) and front offices (conversational banking). It is also evident that artificial intelligence in banking has helped to improve customer service, general banking services, risk management, fraud, cyber security, compliance and physical security. However, unemployment, cyber-attacks and manipulation of data are some of the negative side effects of artificial intelligence in the banking industry. Most research participants

agreed that artificial intelligence benefits the employees and clients, which increases efficiency and profits. Recommendations for future research and practice were made.