AI helps banks to achieve different objectives
According to (Ajayi-Nifise, et al. 2024), the significance of digital transformation for banks lies it their ability to empower significant improvement in their business results. This is based on financial performance, augmenting the customer experience, streamlining the operations, and creating new business modes (Bueno et al. 2024). Digitalization is about adopting breakthrough technologies to transform their conventional business practices (Ajayi-Nifise, et al. 2024). Furthermore, digitalization has caused many risks for banks, which are related to security and trust. Trust, privacy, and other perceived risks are essential to consider, as they shape the perception of the customers. With the use of AI and digital tools, banks can enhance their digital banking experience, including: perceived value, speed of the service, service quality, service customization, functional quality, employee-customer relationship, brand trust, digital banking innovation, security and perceived usability by the customer (Windasari, et al. 2022). This helps to enhance customer trust, and personalization process, strengthen relationships with stakeholders, and reduce hidden costs. Also, AI helps to create value for stakeholders, by offering features of transparency, trust, security, and privacy (Jameaba, 2024).
Digital Skills and Capabilities Development
Digital transformation helps in fulfilling the managerial tasks and objectives, but also create managerial challenges. For this, it is essential to acquire digital skills and capabilities. Because, the digital transformation process needs the upgradation of resources, including: technology and people, both (Porfírio, et al. 2024). The digitalization process requires the financial sectors and banks to adopt financial technologies, which implies new skills and competencies, to meet the challenges of new technological changes and transformation (Mosteanu, 2020). In this context, the role of HR is crucial, as it identifies skill gaps in the existing workforce and plans effective training programs, especially in the context of digital upskilling (Ajayi-Nifise, et al. 2024). Moreover, to reduce the digital skill gap, the Federal financial bank needs significant investments to make its digital transformation effective and successful (Mosteanu, 2020).
