Artificial Intelligence and Bank Soundness: A Done Deal? - Part 1

Ayadurai, C.; Joneidy, S.

Abstract

Banks soundness plays a crucial role in determining economic prosperity. As such, banks are under intense scrutiny to make wise decisions that enhances bank stability. Artificial Intelligence (AI) plays a significant role in changing the way banks operate and service their customers. Banks are becoming more modern and relevant in people’s life as a result. The most significant contribution of AI is it provides a lifeline for bank’s survival. The chapter provides a taxonomy of bank soundness in the face of AI through the lens of CAMELS where C (Capital), A(Asset), M(Management), E(Earnings), L(Liquidity), S(Sensitivity). The taxonomy partitions opportunities from the main strand of CAMELS into distinct categories of 1 (C), 6(A), 17(M), 16 (E), 3(L), 6(S). It is highly evident that banks will soon extinct if they do not embed AI into their operations. As such, AI is a done deal for banks. Yet will AI contribute to bank soundness remains to be seen.

Citation

Ayadurai, C., & Joneidy, S. (2021). Artificial Intelligence and Bank Soundness: A Done Deal? - Part 1. In A. Petrillo (Ed.), Operations Management - Emerging Trend in the Digital Era. intechopen. https://doi.org/10.5772/intechopen.95539

• Online Publication Date: Jan 28, 2021
• Publication Date: Jan 28, 2021
• Deposit Date: Mar 30, 2021
• Publicly Available Date: Mar 31, 2021
• Book Title: Operations Management - Emerging Trend in the Digital Era
• Chapter Number: 13
• DOI: https://doi.org/10.5772/intechopen.95539
• Public URL: https://durham-repository.worktribe.com/output/1648979
• Publisher URL: https://www.intechopen.com/books/operations-management-emerging-trend-in-the-digital-era/artificial-intelligence-and-bank-soundness-a-done-deal-part-1