EXPLORING THE IMPACT OF ECONOMIC CRISES ON CONSUMER BANKING BEHAVIOR AND LOAN PERFORMANCE
Keywords:
Economic Crisis, Consumer Banking Behavior, Loan Performance, Risk Management, Financial ResilienceAbstract
Background:
Economic crises fundamentally test the resilience of financial systems and significantly transform consumer banking behavior, triggering shifts in attitudes toward risk, borrowing, and savings.
Aims:
This study investigates the multifaceted influence of economic crises on consumer banking behavior and loan performance across different crisis scenarios.
Research Method:
Employing a mixed-methods approach, we analyzed three major crises: the 2008 financial crisis, COVID-19 pandemic, and recent inflationary pressures, using data from banking institutions and in-depth interviews.
Results and Conclusion:
Default rates increased 35% during crises while new loan originations decreased 42%. Consumer savings increased 28%, indicating flight to safety. Behavioral patterns include delayed purchases, preference for adjustable rates, and increased digital banking reliance.
Contribution:
This research contributes empirical evidence of behavioral transmission mechanisms during economic shocks, offering strategic insights for adaptive risk management frameworks and customer communication strategies.
Downloads
References
Ahmed, K., & Zafar, S. (2024). Artificial intelligence in risk assessment: A focus on banking compliance. Compliance and Risk Management Journal.
Bakri, A. A., Hasanah, N., & Lasmiatun, K. M. T. (2024). Financial technology innovation and banking industry transformation: A literature study. Multifinance Journal.
Chan, W., & Wong, K. (2024). Exploring AI's potential in real-time payment processing. Journal of Payment Systems and Strategy.
El Khoury, R. (2024). Technology-driven business innovation: Unleashing the digital advantage. Business Innovations Series. ResearchGate
George, A. S. (2024). Robo-revolution: Exploring the rise of automated financial advising systems and their impacts on management practices. Partners Universal Multidisciplinary Research Journal.
Han, J., & Park, S. (2024). Predictive analytics for customer retention in banking: The role of AI. Journal of Customer Relationship Management.
Lee, S., & Kim, Y. (2024). The impact of AI on fraud detection in financial services. Financial Crime and Technology Journal.
Lin, X., & Luo, Y. (2024). AI-powered decision-making systems in financial planning. Journal of Economic Modeling.
Lopez, R., & Garcia, M. (2024). The impact of artificial intelligence on banking workflows: A case study. Journal of Workflow Automation.
Malik, G., & Aggarwal, S. (2024). Transforming banking operations with artificial intelligence: Insights and applications. Global Journal of Banking Technology.
Mehta, P., & Agarwal, R. (2024). AI-driven strategies for enhancing banking customer experience. Journal of Customer Service Innovation.
Nguyen, T. H. N. (2024). Proceedings of the 4th International Conference on Research in Artificial Intelligence and Digital Transformation. International Research Series. Google Books
O'Connor, L., & Smith, R. (2024). The role of AI in automating back-office banking processes. Journal of Banking Operations.
Patel, R., & Sharma, M. (2024). AI in banking operations: A comparative study of chatbot efficiency. International Journal of Service Automation.
Singh, D., & Kapoor, A. (2024). AI and the future of digital banking: Trends and challenges. Digital Finance Review.
Smith, J., & Davis, P. (2024). AI-driven customer service in banking: A new era of personalization. Journal of Banking Technology.
Taylor, H., & Morgan, L. (2024). AI and big data analytics in banking: Trends and future directions. Journal of Data and Technology.
Wang, H., & Zhang, T. (2024). Automated credit scoring systems: How AI is reshaping lending practices. Journal of Financial Innovation.
Yoon, C., & Choi, D. (2024). AI-enhanced fraud detection models for e-commerce transactions. Journal of Online Banking Security.
Zhang, J., & Liu, H. (2024). Leveraging AI in anti-money laundering operations. Journal of Financial Security.
Downloads
Published
Issue
Section
License
Copyright (c) 2024 Zaenal, Ricky Agusiady, Vilma Dewi Anggraeni (Author)
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
