Implementation of Fuzzy Delphi Method in Designing AI-Based Social Banking Model for Iranian Cooperative Banks

Subject Areas : Fuzzy Optimization and Modeling Journal

Ramin Khoshchehreh Mohammadi ¹ , Mehrdad Hosseini Shakib ^{2 *} , Mahmood Khodam ³ , Ali Ramezani ⁴

1 - Department of industrial management, Karaj branch, Islamic Azad University, Karaj, Iran
2 - Department of Industrial Management, Karaj Branch, Islamic Azad University, Karaj, Iran
3 - Department of industrial management, Karaj branch, Islamic Azad University, Karaj, Iran
4 - Department of industrial management, Karaj branch, Islamic Azad University, Karaj, Iran

Received: 2024-09-11 Accepted : 2024-12-25 Published : 2024-12-28

Keywords: Social Banking, Artificial Intelligence, Cooperative Bank, Digital Banking Transformation, Social Innovation in Banking, Fuzzy Delphi,

Abstract :

Cooperative banks, due to their socially oriented nature, play a crucial role in the socio-economic development of local communities, with the expansion of new technologies, making them ideal candidates for the implementation of AI-based social banking. Despite extensive literature on social banking and AI applications separately, there is a significant research gap regarding comprehensive models that specifically integrate AI functionalities with social banking principles in cooperative banking contexts. Furthermore, previous studies have not adequately addressed the specific conditions of developing countries such as Iran, especially considering unique challenges such as international sanctions and local economic constraints. This study adopted a two-stage qualitative approach. First, we systematically reviewed 36 academic articles published between 2014 and 2024 using a meta-synthesis methodology to identify initial dimensions and constructs. Second, we used the Fuzzy Delphi method with 15 banking industry experts to validate and localise the model through three rounds of evaluation, using a 0.7 threshold for final component acceptance. The research results led to the identification of 9 main dimensions and 56 components, with defuzzified values ranging from 0.719 to 0.881. The dimensions include AI technology and infrastructure, social development and community empowerment, financial and economic aspects, management and strategy, legal and regulatory framework, banking products and services, customer centricity, risk and security, and sustainability. Quantitative analysis revealed that components such as localisation of AI technologies (0.754), empowerment of female-headed households (0.769), supply chain financing (0.881), sanctions management (0.787), and alternative foreign exchange services (0.822) received the highest expert consensus, reflecting their critical importance in the Iranian banking context.

References:

1. Amiri, M., Hashemi-Tabatabaei, M., Keshavarz-Ghorabaee, M., Antucheviciene, J., Šaparauskas, J., & Keramatpanah, M. (2023). Evaluation of digital banking implementation indicators and models in the context of Industry 4: A fuzzy group MCDM approach. Axioms, 12(6), 516.
2. Amiri, M., Radfar, R., & Faezy Razi, F. (2021). Analyzing the role of social banking in reducing financial conflict between banks and manufacturing enterprises (Case study: Qarz al-Hasna Resalat Bank). Quarterly Studies in Banking Management and Islamic Banking, 6(15), 121-148.
3. Andrikopoulos, A. (2020). Delineating social finance. International Review of Financial Analysis, 70, 101519.
4. Ashta, A., & Herrmann, H. (2021). Artificial intelligence and fintech: An overview of opportunities and risks for banking, investments, and microfinance. Strategic Change, 30(3), 211-222.
5. Castelli, M., Manzoni, L., & Popovič, A. (2016). An artificial intelligence system to predict quality of service in banking organizations. Computational intelligence and neuroscience, 2016(1), 9139380.
6. Chang, P. T., Huang, L. C., & Lin, H. J. (2011). The fuzzy Delphi method via fuzzy statistics and membership function fitting and an application to the human resources. IEEE Transactions on Fuzzy Systems, 8(4), 467-482.
7. de Andreis, F., Comite, U., Gallo, A. M., Andone, D. M., & Ciaschi, G. (2024). Social business, artificial intelligence, and sustainability: An integrated approach for the future. Sustainable Economies, 2(1), 18-18.
8. Farhang, A., Saeidnia, H. R., Vahabzadeh, S., & Mehrani, H. (2020). Presentation of model of social liability of companies in banking industry focusing on the variable of brand attachment and its function in the domain of citizenshi rights (Grounded Theory). MLJ, 14, 147-160.
9. Fourie, L., & Bennett, T. (2019). Super intelligent financial services. Journal of Payments Strategy & Systems, 13(2), 151-164.
10. Gautam, T., Srivastava, A., & Jain, S. (2024). Efficiency evaluation of state cooperative banks employing data envelopment analysis and neural network technique. International Journal of Business Process Integration and Management, 11(3), 179-185.
11. Habibi, A., Jahantigh, F. F., & Sarafrazi, A. (2015). Fuzzy Delphi technique for forecasting and screening items. Asian Journal of Research in Business Economics and Management, 5(2), 130-143.
12. Hermawan, A., & Rahayu, W. P. (2024). Bank Indonesia's CSR: A Model for Social Entrepreneurship Transformation. Journal of Lifestyle and SDGs Review, 4(4), e01925-e01925.
13. Hsieh, T. Y., Lu, S. T., & Tzeng, G. H. (2004). Fuzzy MCDM approach for planning and design tenders selection in public office buildings. International Journal of Project Management, 22(7), 573-584.
14. Iannaci, D., & Gideon, M. J. (2020). Islamic finance and social finance, an opportunity for social enterprises. European Journal of Islamic Finance, 1, 1-12.
15. Jakšič, M., & Marinč, M. (2019). Relationship banking and information technology: The role of artificial intelligence and FinTech. Risk Management, 21(1), 1-18.
16. Jamini, D., Shamsoddini, A., & Jamshidi, A. (2022). Investigating the role of social capital on the performance of rural cooperatives in Fars province. Co-Operation and Agriculture, 11(42), 23-57.
17. Karimi, H., & Mohammadi, P. (2022). A Sustainable Financial Model for the Social Banking Business. Financial Research Journal, 24(4), 480-504.
18. Kaufmann, A., & Gupta, M. M. (1988). Fuzzy Mathematical Models in Engineering and Management Science. North-Holland, Amsterdam.
19. Kil, K., Ciukaj, R., & Chrzanowska, J. (2021). Scoring models and credit risk: The case of cooperative banks in Poland. Risks, 9(7), 132.
20. Korzeb, Z., Niedziółka, P., Szpilko, D., & Torre Gallegos, A. D. L. (2024). A bibliometric analysis of ESG performance in the cooperative banks: From the current status to future directions. Economics and Environment, 89(2), 809.
21. Mahmoodi, A., Khamseh, A., & Hosseini Shakib, M. (2023). The Model of Innovative Social Banking Based on Digital Transformation in Iran's Banking Industry. Transformation Management Journal, 14(Autumn & Winter 2023), 121-149.
22. Musleh Al-Sartawi, A. M. A., Hussainey, K., & Razzaque, A. (2022). The role of artificial intelligence in sustainable finance. Journal of Sustainable Finance & Investment, 1-6. https://doi.org/10.1080/20430795.2022.2057405
23. Nethala, V. J., Pathan, M. F. I., & Sekhar, M. S. C. (2022). A Study on Cooperative Banks in India with Special Reference to Marketing Strategies. Journal of Contemporary Issues in Business and Government, 28(04).
24. Özdemirci, F., Yüksel, S., Dinçer, H., & Eti, S. (2023). An assessment of alternative social banking systems using T-Spherical fuzzy TOP-DEMATEL approach. Decision Analytics Journal, 100184.
25. Patel, B. A., & Patel, R. (2024). Hindrance of Digital E-Banking Services: An Analytical Investigation on Cooperative Banking. Library Progress International, 44(1s), 292-303.
26. Pérez, M. E. S. (2017). SEBI index: Measuring the commitment to the principles of social banking. Contaduría y Administración, 62(4), 1393-1407.
27. Radhakrishna, V., Ravi, H., Elango, S., Divyashree, V., Jaganathan, A., & Ponnusamy, M. (2024). Future of knowledge management in investment banking: Role of personal intelligent assistants. Methodological Innovations, 20597991241287118.
28. Rahman, M., Ming, T. H., Baigh, T. A., & Sarker, M. (2023). Adoption of artificial intelligence in banking services: an empirical analysis. International Journal of Emerging Markets, 18(10), 4270-4300.
29. Rahim, S., Mohamad, Z. Z., Bakar, J. A., Mohsin, F. H., & Isa, N. M. (2018). Artificial intelligence, smart contract and islamic finance. Asian Social Science, 14(2), 145-160.
30. Ravangard, F., Ronaghi, M. H., & Ebrahimi, A. (2023). Digital Banking Challenges in Banking Industry. Journal of International Business Administration, 6(1), 201-225.
31. Rezaei, H. (2022). Designing a Social Banking Model with a Post-Corona Approach. Islamic Economics and Banking, 11(38), 4.
32. Sadok, H., Sakka, F., & El Maknouzi, M. E. H. (2022). Artificial intelligence and bank credit analysis: A review. Cogent Economics & Finance, 10(1), 2023262.
33. Sandelowski, M., & Barroso, J. (2007). Handbook for Synthesizing Qualitative Research. New York: Springer Publishing Company.
34. Sarkar, K. K., & Thapa, R. (2021). From Social and Development Banking to Digital Financial Inclusion: The Journey of Banking in India. Perspectives on Global Development and Technology, 19(5-6), 650-675.
35. Seifollahi, N., & Ebrahimi Kharajo, V. (2022). Investigating social banking in the world for small industries and providing a solution on how to generalize it in Ardabil. Financial Economics, 16(59), 75-104.
36. Shahbazi, M., Hasirchy, A., & Solgi, M. (2020). Designing and Explaining the Social Banking Model in Iran: Identifying Antecedents and Consequences. "Islamic Finance Researches" (IFR), 10(1), 67-110.
37. Stavropoulou, E., Spinthiropoulos, K., Garefalakis, A., Ragazou, K., & Gonidakis, F. (2023). The role of social banking in the success and sustainable business continuity of SSMEs. International Journal of Financial Studies, 11(3), 86-90.
38. Terko, A., Žunić, E., Ðonko, D., & Dželihodžić, A. (2019). Credit scoring model implementation in a microfinance context. In 2019 XXVII International Conference on Information, Communication and Automation Technologies (ICAT).
39. Thongsri, N., & Tripak, O. (2024). Does social banking matter in times of crisis? Evidence from the COVID-19 pandemic: a combined SEM-neural network approach. International Journal of Social Economics, 51(2), 227-247.
40. Velev, D. G., & Zahariev, M. P. (2022). Challenges of Bank Service Digitalization by Artificial Intelligence: The Case of Bulgaria. International Journal of Trade, Economics and Finance, 13(3), 82-86.
41. Venanzi, D., & Matteucci, P. (2022). The largest cooperative banks in Continental Europe: A sustainable model of banking. International Journal of Sustainable Development & World Ecology, 29(1), 84-97.
42. Yadegari Taheri, T., Vakil Alroaia, Y., Faezi Razi, F., & Heydariyeh, S. A. (2023). Modeling the Relationships between Organizational Intelligent Components for the Development of Rural Production Cooperatives. Village and Development, 26(1), 221-249.
43. Zamany, A., Khamseh, A. and Iranbanfard, S. (2023). Technology transfer in the Industry 5.0 era: An integrated model of artificial intelligence and human factors. Innovation Management Journal, 12(4), 111-140.
44. Zamany, A. and Khamseh, A. (2022). Identification of influential dimensions and components of technology transfer with a focus on digital transformation. Journal of Technology Development Management, 10(3), 57-90.