Algorithmic & Architectural Intelligence in Banking: A Theory-Driven Framework and Empirical Evidence from Banking Decision-Makers

Authors

DOI:

https://doi.org/10.54536/ajbmi.v1i1.7063

Keywords:

Algorithmic Intelligence, Banking Decision-Making, Decision Architecture, Governance, Organizational Design

Abstract

The increasing adoption of algorithmic systems in banking institutions has transformed how strategic and behavioral decisions are structured and enacted. While existing studies emphasize the efficiency and predictive advantages of algorithmic intelligence, limited attention has been given to the organizational and institutional conditions through which such systems influence decision outcomes. Addressing this gap, the present study develops and empirically tests a theory-driven framework that examines how algorithmic intelligence and decision architecture jointly shape strategic and behavioral decision outcomes in banking institutions. Grounded in decision architecture theory and institutional theory, the study conceptualizes algorithmic intelligence as an embedded organizational capability whose effects are mediated by decision architecture and conditioned by the banking environment. A quantitative research design was employed, drawing data from senior banking decision-makers in Philippine banks and regulated financial institutions. Data were collected using a structured survey instrument and analyzed through descriptive statistics, regression analysis, and moderation testing to examine the proposed relationships. The findings indicate that algorithmic intelligence significantly influences strategic and behavioral decision outcomes, particularly in terms of credit utilization behavior, interest sensitivity, and repayment discipline. These effects are strengthened when algorithmic systems are embedded within well-defined decision architectures and are more pronounced in digital banking environments characterized by higher automation intensity. The results further underscore the importance of governance and institutional safeguards in moderating the behavioral implications of analytics-driven decision systems. By empirically validating an integrative framework, this study contributes to the literature by advancing a human-centered, architecture-based understanding of algorithmic decision-making in banking. The findings offer theoretical extensions to decision architecture and institutional perspectives and provide practical insights for banking executives and policymakers seeking to design accountable, resilient, and effective algorithmic decision environments.

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Author Biography

  • Christian Anthony R. Flores, La Consolacion University, Philippines

    Dr. Christian Anthony R. Flores is a seasoned business strategist, academic scholar, and licensed professional with over a decade of integrated leadership experience bridging corporate practice and higher education. He holds a Doctorate in Business Administration (DBA), a Master’s degree in Business Administration (MBA), and a Bachelor’s degree in Accountancy (BSA), with a professional trajectory spanning B2B2C and B2C sales, strategic marketing, account management, corporate training, people development, and enterprise operations across both retail and institutional sectors.

    Licensed by the Philippine Professional Regulation Commission (PRC), Dr. Flores upholds nationally recognized standards of ethical and professional competency. He is an Associate Member of the National Research Council of the Philippines (NRCP) under the Department of Science and Technology (DOST), placing him within a government-recognized pool of researchers and subject-matter experts contributing scholarly and policy-relevant knowledge aligned with national development priorities.

    In academia, Dr. Flores serves as a professor and mentor, translating complex theories into actionable, real-world insights for aspiring professionals. His pedagogical approach is shaped by international training, foreign studies, and intercultural experiences, grounding his instruction in a global perspective and equipping learners to navigate the demands of an evolving business and education landscape.

    As a published author and researcher, Dr. Flores has contributed to internationally peer-reviewed scholarly journals, with research outputs indexed in Harvard University Library, Google Scholar, and other global academic repositories. He also serves as an editorial board member and peer reviewer of respected and internationally recognized academic journals and scholarly publications, actively supporting research quality, ethical standards, and academic rigor, alongside authorship of corporate leadership books and professional publications.

    Beyond academia, Dr. Flores is a registered Author, Writer, and Editor with the National Book Development Board (NBDB) of the Philippines. His core expertise includes strategic planning, sales acceleration, marketing optimization, organizational development, governance, and research-driven innovation. Whether leading corporate initiatives, contributing to national research ecosystems, or shaping the next generation of leaders, Dr. Christian Anthony R. Flores remains committed to professional excellence, national relevance, and sustained impact.

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AJBMI, E-Palli Publishers

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Published

2026-10-13

Issue

Vol. 1 No. 1 (2026): American Journal of Business and Management Innovation

Section

Research Articles

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Copyright (c) 2026 Christian Anthony R. Flores (Author)

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

How to Cite

Flores, C. A. R. (2026). Algorithmic & Architectural Intelligence in Banking: A Theory-Driven Framework and Empirical Evidence from Banking Decision-Makers. American Journal of Business and Management Innovation, 1(1), 173-182. https://doi.org/10.54536/ajbmi.v1i1.7063