Digital Revolution in Modern Banking: Systematic Literature Review and Cluster Analysis

This thesis highlights Artificial Intelligence (AI) as a key innovation in driving digitization within the banking sector. It examines the impact of banking digitization on customers' involvement with banking channels, services, and solutions. In the first chapter, Iinvestigate the literature regarding the utilization of AI in the banking sector through a Systematic Literature Review (SLR). In the second chapter, I segment banking customers based on select psychographic traits and examine differences among the clusters regarding their perceptions and reactions towards retail digital banking innovations. I conduct a cluster analysis on a sample of 186 Canadian participants to profile unique customer segments and analyze how they differ in their involvement with retail digital banking innovations. This research provides researchers and financial services practitioners with a holistic overview of digital technologies shaping modern banking, actionable recommendations, and future research directions.