BUILDING TRUST IN AI-POWERED BANKING IN NIGERIA: A COMPARATIVE ANALYSIS OF USER PERCEPTION AND ACCEPTANCE OVER THE COMMERCIAL BANKING

ABSTRACT:

AI in banking is a rapidly growing area, and understanding user perception is crucial, especially in a developing market like Nigeria. The focus on it’s embrace over the commercial banking is particularly important, as trust is a significant barrier to the adoption of new technologies, especially in financial sectors. The surge in adoption of AI-Powered banking systems in Nigeria, particularly between late 2022 and early 2023, coincided with the nation's push for a cashless policy, a period marked by significant frustration with traditional commercial banks, potentially accelerating the embrace of these emerging digital alternatives by citizens seeking more seamless and reliable financial services amidst the challenges posed by conventional institutions. The methodology of this study involves A/B testing and quantitative analysis of four hundred and seventy six (476) data samples, which were collected using google form, and the result indicates a significant shift in Nigerians bank users toward trusting and adopting AI-Powered banking over traditional commercial banking.

Keywords: AI-Powered banking, A/B Testing, Commercial banking, Exploratory Data Analysis (EDA)