As Nigerian banks deepen their investments in artificial intelligence (AI) to improve customer service and operational efficiency, new research has shown that customer trust, not just technology, plays the most critical role in shaping how Nigerians respond to AI-driven banking services.
Obinna Nweke, a decision scientist and analyst, will present the findings at the University of Nigeria’s International Conference on Marketplace Digital Transformation, holding virtually on July 17-18. The study, co-authored with Professor Titus Chukwuemezie Okeke of Nnamdi Azikiwe University’s Department of Marketing, is titled “Artificial Intelligence and Predictive Analytics in Marketing: How Machine Learning Algorithms Shape Consumer Behaviour Predictions in the Nigerian Banking Sector.”
The research surveyed 236 banking customers across major digital channels and traditional bank branches.
“Trust is the currency of AI adoption,” Nweke said ahead of his presentation. “When customers trust the system, they respond better to AI, even if they don’t fully understand the backend technologies and algorithms.”
Key Findings
The study evaluated five major factors influencing how AI systems affect customer behaviour: algorithm accuracy, data quality, customer segmentation capabilities, real-time analytics, and trust. While algorithm accuracy and real-time responsiveness showed strong positive influence on customer engagement, traditional backend factors such as data quality had minimal direct impact on perception.
However, trust emerged as a decisive factor. Customers who had higher trust in their banks were more likely to see value in AI applications, particularly in services like fraud alerts, automated support, and personalised recommendations. Interestingly, as trust levels rose, customers became less concerned about technical features like data lineage or segmentation models.
Implications for the Banking Sector
As financial institutions across Nigeria roll out chatbots, AI-driven service agents, and predictive analytics tools, the findings suggest a need to shift focus from just technical upgrades to building transparent and confidence-boosting AI interfaces.
“AI needs to feel human-centric,” Nweke said. “The key is not just building smarter systems, but systems that customers actually believe in.”
Several banks have deployed AI tools for marketing, fraud prevention, and customer insights. Yet, the research suggests customer response hinges more on observable results like speed and relevance than on technical robustness.
The findings have broader implications for banking markets in African and beyond, where similar cultural and economic factors may influence AI adoption patterns. As financial institutions across the continent implement digital transformation strategies, understanding trust dynamics could inform more effective deployment approaches.
Customer Profile
The study’s participants covered major service channels, including mobile apps, internet banking, ATMs, and in-branch banking. Notably, 45.8% of respondents were aged 46 and above, challenging the notion that AI adoption is limited to younger customers. Additionally, 50.8% of those surveyed were self-employed, underscoring the technology’s reach across diverse economic segments.
Conference Details
The University of Nigeria’s international conference, themed “Driving Innovation and Success in a Technology-Driven World,” brings together academics, business leaders, and tech professionals to explore digital transformation across African markets. Professor Samaila Mande of the National Open University will deliver the keynote, with the lead paper by Professor Nkamnebe Anayo of Nnamdi Azikiwe University.
The event will be held online, enabling participation from institutions and professionals across Nigeria and beyond.
About the Researchers
Obinna Nweke holds advanced degrees in artificial intelligence and applied statistics. He has implemented marketing technology solutions for leading Nigerian banks and provided data analytics consulting for major US corporations.
Professor Titus Chukwuemezie Okeke is a Professor of Marketing at Nnamdi Azikiwe University’s Department of Marketing, bringing extensive academic expertise in marketing research and consumer behaviour to the collaborative study.
