Digitalization in Banking: Navigating the Effects of Automated Decision-Making on Customer Experience

Author:

Gavrila Andreea-Raluca

Abstract

Abstract This study explores the impact of automated decision-making processes on customer experience within the banking industry, set against the backdrop of digital transformation. The objectives are to provide insights into how automated decision processes shape the contemporary banking experience and influence customer perceptions, acknowledging both the positive and negative implications for the evolving nature of banking services in the digital era. The literature review examined the contributions of the cited authors, generating a summary of information categorized into three parts: a comprehensive overview of the banking landscape in the context of digital transformation, brief considerations regarding automated decision-making processes and several insights into customer experience. The research methodology employed a questionnaire, encompassing both close-ended inquires and an open feedback section. The study was conducted for the Romanian banking system and had a sample size of 102 respondents. The gathered data was subsequently correlated and analyzed to evaluate the alignment of customer perception with the opportunities and challenges identified in the specific literature. This paper also tries to widen its relevance by facilitating practical applications of the research findings. Thus, in the result section, key considerations were formulated, targeting a more precise definition of automated decision-making processes in the banking industry, aiming to optimize the experience for the utilizing customers. The conclusion indicates that both strengths and weaknesses of automated decision-making processes in banking industry are of relevance in the perception of customers, as the questionnaire’s responses align in form and extend with the theoretical concepts identified in the relevant literature.

Publisher

Walter de Gruyter GmbH

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