ISSN: 2225-8329
Open access
The study focuses on one of the main changes brought by AI to the customer relationship management field in the banking industry. By far, it mainly emphasizes the huge potential of AI in forecasting and analyzing the upcoming needs of customers that would result in not only easier financial transactions but also in delivering the services that would flow properly and meet the customer's expectations thus creating a higher level of customer loyalty and satisfaction. Moreover, this study indicates the best practices that banks can implement to improve AI application's effectiveness in customer churn reduction, achieving strategic goals of customer experience improvement, revenue increase and trust reliability reinforcement on banking services, and investing in infrastructure for competitive world with based on survival of the fittest. Under this framework, this research is based on a qualitative approach where it was conducted content analysis of previous research in the field of artificial intelligence in banking to draw new insight and uncover its potential as a strategic tool for nurturing sustainable customer relationship. Moreover, the research adopts a dual perspective that combines dynamic capabilities theory and innovation diffusion theory, to illustrate the use of AI as a tool for a strategic analysis of customer needs and adopt modern technologies to build comprehensive gathered view that combines both strategic and behavioral dimensions of customer relationship management. Consequently, the study concludes that AI is one of the essential innovations required to help the banking sector meet the challenges that the globalized world and competition bring. As a result, this research becomes a source of knowledge that unfolds the advantages of using AI in CRM and in the strategic analysis of customer needs, which records it as a significant referential input for researchers and decision-makers in the banking sector.
Abdallah, A. M. (2021). The impact of artificial intelligence on customer experience in the banking sector. Journal of Banking and Financial Technology, 5(2), 101–117.
Abubakar, A. M., Bala, K., & Shehu, A. (2023). Artificial intelligence and financial inclusion in developing countries: Opportunities and challenges. International Journal of Economics and Financial Issues, 13(2), 45–57.
Adedoyin, F., & Dogan, H. (2025). Human-Centred AI in FinTech: Developing a User Experience (UX) Research Point of View (PoV) Playbook. arXiv preprint arXiv:2506.15325.
Ahmed, Z., & Khan, A. (2024). AI-driven predictive analytics in banking: A framework for strategic decision-making. Journal of Financial Innovation, 6(3), 210–227.
Al-Masry, M. (2022). Artificial intelligence and digital transformation in the banking sector: Evidence from Egypt. Journal of Financial Studies, 18(4), 332–345.
Al-Tayeb, M., & Mersli, J. M. (2022). Artificial intelligence in the banking sector and its multiple applications to banking services. In Proceedings of the International Conference on Big Data and Digital Economy. El Oued University, Algeria.
Alzoubi, M., & Alshurideh, M. (2023). Exploring the role of artificial intelligence in digital banking services: A systematic review. International Journal of Data and Network Science, 7(2), 95–108.
Amin, A., & Rahman, M. (2024). Enhancing customer satisfaction through AI-based chatbots in retail banking. Asian Journal of Business and Technology Studies, 9(1), 22–36.
Ash Booth, A. (2023, March 15). Explainable AI in financial services. HSBC Global Banking and Markets. https://www.gbm.hsbc.com
Bank for International Settlements. (2023). Artificial intelligence and the financial system. BIS Annual Economic Report.
Banna, H., & Alam, M. (2022). The influence of AI on service quality in Islamic banking. Journal of Islamic Marketing, 13(4), 878–896.
Basak, D., & Sen, D. (2024). AI adoption in Indian banking: Opportunities, challenges, and implications. Indian Journal of Finance and Banking, 18(1), 1–16.
Ben Fadhel, N. Z. (2025). Leveraging predictive intelligence to understand banking customer behavior. International Journal of Innovative Research and Scientific Studies, 8(5), 1771–1788. https://doi.org/10.53894/ijirss.v8i5.9273
Chatterjee, S., Rana, N. P., & Dwivedi, Y. K. (2021). The role of AI in customer experience management: A systematic literature review. International Journal of Information Management, 56, 102–105.
Chen, J., & Zhang, Y. (2024). Big data and AI synergy in risk management: A banking perspective. Finance Research Letters, 55, 103–122.
Citi Bank. (2023). AI applications in risk management and compliance. Citi Insights.
Concetto Labs. (2023, March 3). AI in banking – How can banks grow with artificial intelligence? https://www.concettolabs.com/blog/ai-in-banking
Deloitte. (2022). The AI-powered bank of the future: How artificial intelligence is reshaping banking. Deloitte Insights.
Elhaj, A., & Rahman, S. (2023). AI-driven fraud detection in digital banking: A conceptual framework. Journal of Financial Crime, 30(1), 122–139.
European Central Bank. (2023). Artificial intelligence in the banking sector. ECB Occasional Paper Series.
EY Global. (2024). AI in banking and capital markets: Improving risk management and customer engagement. EY Research Report.
Fadhel, A. (2023). AI and automation in financial services: A review of current applications. Arab Journal of Financial Studies, 14(2), 233–250
FSB (Financial Stability Board). (2024). The impact of AI on financial stability. Financial Stability Board Publications.
Google Cloud. (2024). AI and machine learning use cases in banking. Google Cloud Financial Services Report.
HDFC Bank. (2023). Harnessing AI for operational efficiency and customer engagement. HDFC Bank Report.
HSBC. (2023). AI strategy and explainable models in banking. HSBC Global Research.
ICICI Bank. (2023). Zero Touch Credit and AI-based lending models. ICICI Innovations Report.
International Monetary Fund. (2023). Artificial intelligence and the future of finance. IMF Policy Paper.
ISO. (2022). Artificial intelligence—Concepts and terminology (ISO/IEC 22989:2022). International Organization for Standardization
Jagtiani, J., & Lemieux, C. (2019). The roles of alternative data and machine learning in fintech lending: Evidence from the LendingClub consumer platform. Financial Management, 48(4), 1009–1029.
KPMG. (2023). AI and machine learning in banking: Risk and reward. KPMG Financial Services Report.
Kumar, A., & Singh, S. (2024). AI-powered analytics in the Indian banking sector: Challenges and prospects. Journal of Financial Analytics, 9(2), 98–114.
Labib, E. (2024). Artificial intelligence in marketing: Exploring current and future trends. Cogent Business & Management, 11(1), 2348728.
Lazo, M., & Ebardo, R. (2023). Artificial intelligence adoption in the banking industry: Current state and future prospect. Journal of Innovation Management, 11(3), 54–74.
Ledro, C., Nosella, A., & Vinelli, A. (2022). Artificial intelligence in customer relationship management: Literature review and future research directions. Journal of Business & Industrial Marketing, 37(13), 48–63
Liu, D., Fang, H., Tang, Y., Mohd Isa, S., & Tang, J. (2023). Intelligent technology solutions and banking efficiency: The impacts of institutional innovation and consumer participation. SAGE Open, 13(2), 21582440231184205.
Mehdi, M. (2022). The reality of the use of Islamic banks of artificial intelligence applications in digital marketing: The case of Al Salam Bank Algeria as a model. Journal of Economic Dimensions, 12(2), 239–260.
Mejia, N. (2019, October 8). Artificial intelligence at Citibank – current initiatives. Emerj Artificial Intelligence Research. https://emerj.com/ai-at-citi/
Mersli, J. M. R., & Al-Tayeb. (2022, May). Artificial intelligence in the banking sector and its multiple applications to banking services [Paper presented at the International Virtual Conference on Big Data and Digital Economy, El Oued University, Algeria].
Mhlanga, D. (2020). Industry 4.0 in finance: The impact of artificial intelligence (AI) on digital financial inclusion. International Journal of Financial Studies, 8(3), 45.
Noreen, U., Shafique, A., Ahmed, Z., & Ashfaq, M. (2023). Banking 4.0: Artificial intelligence (AI) in banking industry & consumer’s perspective. Sustainability, 15(3682).
Osman, D. (2022, November 22). Statistics and indicators of artificial intelligence and its future prospects. Al-Masry Al-Youm. https://www.almasryalyoum.com/news/details/2748701
Paschen, J., Kietzmann, J., & Kietzmann, T. C. (2019). Artificial intelligence (AI) and its implications for market knowledge in B2B marketing. Journal of Business & Industrial Marketing, 34(7), 1410–1419.
Patel, M. (2023, March 3). AI in banking – How can banks grow with artificial intelligence? Concetto Labs. https://www.concettolabs.com/blog/ai-in-banking
Prabhakar, S., Nalinaksha, I., & Anjaneyulu, V. (2023). Role of AI in enhancing cybersecurity measures to protect sensitive financial data. International Journal of Science and Research Archive, 10(1), 1091–1097. https://doi.org/10.30574/ijsra.2023.10.1.0700
Ragab, A. A. M., & El Behiry, E. (2025). Bank customer churn prediction using machine learning. Journal of Engineering Advances and Technologies for Sustainable Applications, 1(3), 1–8.
Rath, M., & Date, H. (2025). Quantum powered credit risk assessment: A novel approach using hybrid quantum-classical deep neural network for row-type dependent predictive analysis. EPJ Quantum Technology, 12(1), 75.
Ravikumar, T., Murugan, N., Suhashini, J., & Rajesh, R. (2021). Banking on artificial intelligence to bank the unbanked. Annals of the Romanian Society for Cell Biology, 25(5), 129-132.
Satheesh, M. K., Samala, N., & Rodriguez, R. V. (2020). Role of AI-induced chatbot in enhancing customer relationship management in the banking industry. ICTACT Journal on Management Studies, 6(4), 1320–1323.
Shaikh, A. A., Kumar, A., Mishra, A., & Elahi, Y. A. (2024). A study of customer satisfaction in using banking services through artificial intelligence (AI) in India. Public Administration and Policy, 27(2), 167–181.
Shambira, L. (2020). Exploring the adoption of artificial intelligence in the Zimbabwe banking sector. European Journal of Social Sciences Studies, 5(6).
Sheth, J. N., Jain, V., Roy, G., & Chakraborty, A. (2022). AI-driven banking services: The next frontier for a personalised experience in the emerging market. International Journal of Bank Marketing, 40(6), 1248–1271.
Shirvanporzour, A. (2025). Artificial intelligence in banking risk management and anti-money laundering: A comprehensive review. SSRN Electronic Journal. https://ssrn.com/abstract=5161209
Simbolon, N. H., Jati, F. D., & Siahaan, S. B. (2025). Overcoming the challenges of AI adoption in the banking sector: Security, regulation, and infrastructure. International Journal of Applied Finance and Business Studies, 13(1), 86–95.
Smit, J. (2023). A literature review on the impact of artificial intelligence on the future of banking and how to achieve a smooth transition. Open Journal of Business and Management, 12(1), 509–520.
Soocial. (2023). 29 AI in banking statistics to help you plan for 2023. https://www.soocial.com/ai-in-banking-statistics/
Tariq, M. U., Poulin, M., & Abonamah, A. A. (2021). Achieving operational excellence through artificial intelligence: Driving forces and barriers. Frontiers in Psychology, 12, 686624.
Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic Management Journal, 18(7), 509–533.
Thiruma Valavan, A. (2023). AI ethics and bias: Exploratory study on ethical considerations and potential biases in AI decision-making in banking. World Journal of Advanced Research and Reviews, 20(2), 197–206
Todupunuri, A. (2024). The future of conversational AI in banking: A case study on virtual assistants and chatbots. International Research Journal of Economics and Management Studies, 3(10).
Vadapalli, T. K., Kanchi, S., Joglekar, S., Phalke, V., Hareesh, J., & Magar, A. (2025, February). Leveraging artificial intelligence for improved financial decision-making in the Indian mutual fund sector. In 2025 First International Conference on Advances in Computer Science, Electrical, Electronics, and Communication Technologies (CE2CT) (pp. 970–975). IEEE.
V?duva, A. G., Oprea, S. V., Niculae, A. M., Bâra, A., & Andreescu, A. I. (2024). Improving churn detection in the banking sector: A machine learning approach with probability calibration techniques. Electronics, 13(22), 4527.
Viswanathan, P. S. (2025). Artificial intelligence in financial services: A comprehensive analysis of transformative technologies and their impact on modern banking. Technology (IJRCAIT), 8(1)
Von Krogh, G., Ben-Menahem, S. M., & Shrestha, Y. R. (2021). Artificial intelligence in strategizing: Prospects and challenges. Future of Strategic Management, 625–646.
Wah, J. N. K. (2025). AI-powered wealth management: Transforming financial literacy and personalized investments through robo-advisors. Chinese Science Bulletin, 70(2), 4401–4420.
World Bank. (2024). Artificial intelligence and the future of banking in emerging markets. World Bank Policy Report.
Yams, N. B., Richardson, V., Shubina, G. E., Albrecht, S., & Gillblad, D. (2020). Integrated AI and innovation management: The beginning of a beautiful friendship. Technology Innovation Management Review, 10(11)
Zaman, S. U., Ansari, M. A., Alam, S. H., & Iqbal, R. F. (2024). Role of customer loyalty in online banking services through artificial intelligence (AI). Review Journal of Social Psychology & Social Works, 2(2), 342–360.
Zhang, L., & Li, H. (2023). AI and financial forecasting: A review of modern techniques. Journal of Computational Finance, 27(1), 77–95.
Zhao, X., & Chen, L. (2024). Explainable artificial intelligence in finance: Transparency and trust in automated decision-making. Journal of Financial Technology, 9(3), 215–234
Zhou, M. (2023). Applications of artificial intelligence in modern banking. International Journal of Banking Technology, 5(2), 33–52.
Zhu, Y., & Peng, C. (2023). Integrating AI and big data for customer insights in financial services. Journal of Business Research, 158, 113–127.
Zhu, Z., & Li, M. (2024). AI-enabled strategic analysis in digital banking transformation. Asia-Pacific Journal of Financial Studies, 53(1), 22–47.
Zins, A., & Weill, L. (2016). The determinants of financial inclusion in Africa. Review of Development Finance, 6(1), 46–57
Zouari, S., & Abdelhedi, M. (2024). AI-based decision systems for improving customer engagement in digital banking. Arab Economic and Business Journal, 19(3), 221–235.
Zouiten, R., & Messaoud, R. (2023). Machine learning algorithms for credit risk assessment in the banking industry. International Journal of Finance, 17(4), 122–137.
Zyed, N., & Ali, S. (2024). The rise of intelligent automation in financial services. Journal of Economic Perspectives, 12(2), 199–214
Abed, H., Zakariyah, H., & Al-Shaghdari, F. (2025). Usages of Artificial Intelligence in Forecasting and Strategic Analysis of Customer Needs in the Banking Sector. International Journal of Academic Research in Accounting, Finance and Management Sciences, 15(4), 120–137.
Copyright: © 2025 The Author(s)
Published by HRMARS (www.hrmars.com)
This article is published under the Creative Commons Attribution (CC BY 4.0) license. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this license may be seen at: http://creativecommons.org/licences/by/4.0/legalcode