Chatbot

Rise of AI Powered Chatbots in the Banking Industry

With a massive rise in the popularity of instant messengers, businesses are making use of chatbots to offer instant replies to the...

Written by Niel Patel · 5 min read >
chatbot in banking industry

With a massive rise in the popularity of instant messengers, businesses are making use of chatbots to offer instant replies to the queries of customers. Today, we live in a fast-paced world where it will be senseless to expect your customers to wait for hours before your support team finally turn up and resolve the issues users have. Without automation and intelligence, creating a personalized experience is impossible by just using human effort only. Choose the right chatbot development company for banking and finance to get your own chatbot built and take your business to the next level.

Banking is one of the fastest-growing sectors that is embracing technological advances to deliver immersive customer experiences. To attain this, the payments industry has started investing a lot of effort to ease the payment process for customers by introducing chatbot in finance technologyFintech organizations are using AI-enabled conversational interfaces to interact with customers instantly by replicating the patterns of human conversations. Let’s find out how big brands are combining chatbot user engagement with seamless digital payments.

Significance of Conversational AI in Banking

Banking industry can make use of bots to make smart conversations with millions of customers, at a fraction of the cost that would have taken by using human customer agents. Study by Juniper Research states that for every query handled by a chatbot, banks can save not just 4 minutes of human staff’s time, but also leads to $0.70 average cost savings per chatbot interaction by 2022. Banks using AI chatbots have been able to acquire and engage more customers than those who haven’t. Some examples of successful bank bots are Erica by Bank of America, EVA by HDFC Bank, Amex by American Express, etc.

Here are some of the top use cases that explain why using AI bots in Banking is a wise choice-

Increase Leads

The bots meant for lead generation can be embedded on the bank’s website or the app to start interactions with customers, check if they want to proceed with the purchase or analyze their interest scale for the product. The information of these captured ‘leads’ can be transferred to the bank’s sales team for additional follow-ups till the completion of the sale.

Customer Support

Bots are built with the NLP capabilities to handle smart conversations using a wide range of customer support queries coming up from the different types of users. They can be integrated into many customer touchpoints like Facebook, Twitter, etc. where customers will be given direct solutions or redirected to a human agent. Your customer agents no longer need to worry about simple routine queries or FAQs! Get your bank bot built by the top Chatbot Development company.

Gather Feedback

Getting regular feedback from customers and implementing it can be the best way to improve the business goals of any banking organization. The bots that work on the conversational survey format of feedback can be very beneficial and engaging as compared to the long feedback forms used earlier. Record says the use of feedback bots has helped banks in driving phenomenal results.

Top Ways Chatbots are Transforming the Customer Experience in Finance

Undoubtedly, chatbots have come a long way since the evolution of the 1st chatbot, ELIZA that was developed in 1966. Chatbots have transformed many industries and the banking sector is no exception. Bots have become an important part of the banks helping them revolutionize their customer experiences and uplift their services. Conversational bots enabled banks to reach out to their customers faster with instant replies. Here are some of the top ways that define how chatbots revolutionize the banking world-

Financial Tips

Bots can act as a financial advisor by providing budget planning personalized tips or suggestions when customers are about to go over their budgets. This helps in keeping their finances under control enabling them to save money.

Detect Fraud

Bots can be helpful for banks, as they can help to monitor all the daily transactions and check if there is any suspicious or fraudulent activity. Customers will be notified instantly for any such situations.

Assist Customers

Bots can behave like an assistant helping new users to register and providing information on banking services. Whether the user needs to find the nearest bank branch or ATM, make payments or check bank balances, etc., a chatbot can help!

Tailored Marketing

Bankscan use bots to update customers about the newly launched banking service or a product. Also, personalized offers based on users’ life events like birthdays, anniversaries can be sent through bots.

While chatbots take care of all the customer queries related to basic banking services, bank customer agents can keep their focus on top concerns where human intervention is required and attain business goals faster. Though bots can save up-front costs and enhance customer satisfaction, it can never replace banking representatives completely as there are many customers who prefer face-to-face interaction over chat to know about the concerned issues.

Benefits of Chatbots in Banking Industry

Before we proceed further, let’s find out how Chatbot can help the banking sector by improving the customer experience. As the expectations in the banking and finance industry have continuously evolved over the years, banks must keep the focus on areas that enable automation to serve multiple requests simultaneously. The banking firms that have already adopted chatbots in its operations are the ones who have attained maximum customer satisfaction as compared to those without chatbots. The study by Jupiter Research states that the success rate of bot interactions in the banking sector is expected to reach 90% by the year 2022.

Here are some of the best ways that show how banking chatbots improve customer experience

Answer Queries

Banking customers can get their banking related queries resolved instantly through the help of a chatbot. The FAQs like how to block cards during loss, new banking product inquiries, information about loan interest rates, etc. can be answered enabling human agents to save time and efforts.

Help Marketing

Banking chatbot can be a great help to ease the marketing efforts that improve the customer experience and boost brand loyalty. Bots can send relevant notifications while customers visit the bank’s website and help in moving customers through the sales funnel.

Analyze Users’ Sentiments

Some advanced features of chatbot support sentiment analysis where a chatbot can analyze how the customer is feeling through the tone of words they used during the conversation with a bot. This can help in taking more context to conversation helping bot serve customers better by checking it’s the positive or negative sentiment.

Handle Banking Activities

Customers no longer need to go through a long process of customer support call where they must wait before connecting with the agents. The chatbot can handle activities like transferring money from one account to another, pay bills, apply for loans just within a chat window. While some chatbots are only meant for basic questions, others are being integrated with customer accounts via API.

As discussed above, banks and financial institutions must implement AI chatbot applications in their services to avoid huge losses and save efforts of the human agents enabling them to focus on their banking goals.

How Banks Can Add More Value with Tech Advances in the World of AI?

Banks across the globe are using advanced bot solutions powered by technologies like Artificial Intelligence, Machine Learning, etc. to meet the ever-growing customers’ expectations. Listed below are some of the technologies that can impact the development of bots used by banking institutions.

Voice Bots on IVR

Banks are known for making customers wait an average of 10 minutes during working hours to talk with the customer agent, which can be quite frustrating for users in today’s era. With a voice-enabled IVR system, instant access to service can be provided to overcome this issue.

Smart Home Assistants

Imagine linking your home assistants like Alexa, Google Home, etc. with your bank accounts to manage or conduct transactions just through your voice commands! This will not only simplify the transaction process but also saves the time of the customers.

Machine Learning

With the help of machine-learning pattern recognition present in bots, banks can get the benefits of early fraud detection with the capability to identify threats that may be missed by humans or traditional security approaches.

AI & NLP

Bots are already known for handling redundant and simple queries, but some complex interactions may limit automation. That is why the advances of AI and NLP are used to enhance the capability of conversational AI to make bots learn from themselves and evolve with time.

Closing Statement

We know customers have infinite choices to choose from and the margin of difference between the competitors is reducing every day. Exceptional customer experience is the only factor that can make your banking organization stand out in a crowd of competitors. Get in touch with the experts of the reliable AI chatbot solution providerand give a boost by engaging your customers with simplified transactions. It’s time to focus on the chatbot experience and integrate a reliable payment system on the backend to help your customers make their purchase through a quick chat.

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