Enhancing Perceived Operational Efficiency in Retail Lending through Artificial Intelligence : Evidence from Digital-Native Bank Customers

This study explores how Artificial Intelligence (AI) tools influence the operational efficiency of retail lending in commercial banks in Chennai. It focuses on four AI features: Automated Credit Scoring, AI-Powered Customer Support, Intelligent Loan Processing Systems, and Fraud Detection and Risk Analytics. Using a quantitative approach, data was collected from 200 digital-native customers who had availed retail loans, through a structured questionnaire and convenience sampling. Statistical analyses including regression and correlation were used to assess the impact of AI on operational efficiency. The results show that Automated Credit Scoring, AI Customer Support, and Intelligent Loan Processing significantly improve operational efficiency, while Fraud Detection had no notable impact. The findings help bridge the gap in regional, customer- centric research on AI in banking and provide valuable insights for banks aiming to improve service speed, accuracy, and customer satisfaction through AI-driven lending processes.