The Role of Artificial Intelligence in Advancing Sustainable Banking and Service Efficiency in Nigerian Financial Institutions: An Assessment of Selected Quoted Banks
Abiodun Thomas Ogundele, Olusola Anthony Ibitoye, Oluwatoyin Olusola Akinterinwa, Abraham Adeniran, Felix Olusegun Ibukun, Temitope Gift Apata · Journal of Sustainable Development Law and Policy (The) · 2025
The rapid growth of human reasoning impacts the sustainability andefficiency of the banking industry globally, including in Nigeria. Many bankshave used technology and creativity to improve service efficiency and revenuesustainability due to worries about the detrimental effects of humanintelligence. Our research analyses how AI integration influences sustainablebanking and service efficiency in selected Nigerian listed banks. Naturallanguage processing, machine learning, and predictive analytics arerevolutionising banking. In addition, risk management, fraud detection,customer service, and operational automation applications create dataprivacy, ethical, and regulatory compliance issues, though they are efficientand cost-effective. According to a cross-sectional study of clients from fiveNigerian deposit money banks: Access Bank Plc, Fidelity Bank Plc, FirstBank Plc, Guarantee Trust Bank Plc, and Zenith Bank Plc, 384 individualscompleted the self-administered questionnaire SAQ. In this study, thefollowing methods were used: mean, standard deviation, skewness, kurtosis,Jarque Bera, correlational analysis, and OLS regression. The researchersobserved that AI awareness, application, and effectiveness have an impact onthe service efficiency of a subset of Nigerian quoted deposit money banks.Finance firms in Nigeria use AI to improve productivity and client happinessas one suggestion was to automate tedious tasks for bank services. However,government regulations restrict Nigerian banks' AI usage. To bridge thesegaps, the paper recommends banking AI regulations, infrastructuraldevelopment, education, training, and monitoring. The paper alsorecommends that Nigerian officials automate identity verification and riskassessment to speed up procedures. Overall, there should be strongsustainability, security, and privacy laws to promote economic and socialobjectives.