The Role of Artificial Intelligence in Leveraging Customer Segmentation and Personalized Credit Offerings in Banking

Abstract

This study delves into the transformative potential of artificial intelligence (AI) within the banking sector, focusing on its role in enhancing customer segmentation and facilitating personalized credit offerings. With a sample size of 231, the research aims to investigate, explore, examine, and evaluate various facets of AI integration in banking. Through a comprehensive literature review and empirical analysis, the study elucidates the effectiveness of AI-driven customer segmentation methods in identifying distinct customer segments based on their financial behavior, preferences, and risk profiles.

Furthermore, it assesses the potential for personalized credit offerings enabled by AI-powered predictive analytics, allowing banks to tailor credit solutions to individual customer needs with greater precision. By evaluating best practices for leveraging AI in customer segmentation and credit offerings, the study provides insights into optimizing resource allocation, mitigating credit risks, and fostering deeper customer relationships. Additionally, ethical considerations and challenges associated with AI implementation in banking are addressed, emphasizing the importance of transparency, accountability, and regulatory compliance. Overall, this research contributes to a deeper understanding of how AI can revolutionize customer segmentation and credit offerings in banking, paving the way for a more agile and customer-centric banking ecosystem.