Machine learning and artificial intelligence are gradually taking over many different businesses. A chatbot is the technology that is thought to be most popular right now. Chatbots play a critical role whenever automation is required, be it in a major corporation or a young startup, and the banking industry is no exception.
With automation, the banking industry is gradually moving toward self-service in order to meet the needs and expectations of customers who are tech aware. Consequently, integrating chatbots into the financial sector is a fantastic development that will significantly reduce the whole banking task.
Due to their busy schedules, customers are hesitant to wait in long lines to conduct financial transactions. They therefore favor online banking, chatbot banking, and smartphone banking. Customers can easily complete any financial transaction via text or voice with the aid of a chatbot for banking. Moreover, chatbots have greatly increased customer satisfaction.
Chatbots and AI in the Banking Industry: What They Do
In the past few years, the banking industry has moved toward using digital tools. Everything is becoming digital, whether it’s a small business or a big bank. When more people use digital channels, customers also have higher expectations of how the banks will treat them. Chatbots with artificial intelligence are well-equipped to improve the customer experience through digital channels of communication.
As the pandemic continues, chatbots are helping community and regional banks stay in business and do well. When the pandemic started, people had to wait a long time in call centers because no one saw this coming. Also, some customers were worried about their finances because of furloughs and layoffs. So, it became hard to make enough money to pay the mortgage.
Along with a high number of calls, many financial institutions have trouble finding enough staff in the call center because of the need for social distance. Also, the sudden increase in Coronavirus made it hard for the FinTech industry to get their employees set up to take calls from home.
To deal with all of these problems, many companies have started using chatbots in banking to help customers and improve customer service. Banks now use chatbots to automate and take care of simple, routine questions, while keeping people on hand to help customers with more complicated problems.
Few Ways Chatbots Can Be Used and Their Benefits in Banking
How often do you go to the bank branch to do your banking these days? Surely, “not very often” would be the right answer. So now you need to think about what the bank has to do with chatbots. Well, the answer is pretty simple: to make services run automatically. As you can see, services these days are pretty slow and sometimes even annoying because people are more likely to make mistakes and misunderstand than chatbots.
So, in this case, a conversational AI chatbot can help you give great customer service because it’s always on, never forgets anything, never gets sick, and never stops working. Installing an AI chatbot in a bank can help with daily tasks and make the customer experience better in the digital banking sector.
These are a few examples of chatbot use cases:
- Financial Transfer
Chatbots can be used by users to track financial activities, set up or cancel payments, and pay invoices. Moreover, chatbots can charge prepaid cards or pay off credit card obligations.
- Respond to Simple Questions
Chatbots can respond to a number of basic inquiries about customer accounts or financial services. Chatbots, for instance, can respond to inquiries like “How do I apply for a credit card?”
- Delivers Timely Reminders and Alerts
The majority of banks utilize chatbots to provide their clients with timely reminders and ongoing account updates. Customers frequently receive reminders about upcoming bill payments, loan offers that are still available, and other things. All of these reminders aim to keep clients informed of all the things that can help them and stick with them.
- Verify the Account Balance
Consumers can request information about their account balances under their names from chatbots. Customers may receive alerts from chatbots if their account balance is in danger of dropping below the average.
- Offers full account information
Users may inquire about account information other than account balances, such as money transfer limitations, card reward points, and information on recurring bills and expenses. Also, one can retrieve their account information and make adjustments, including altering their current address or phone number.
- Immediate Location Tracking
The responses to user queries may differ depending on region. For instance, a user might inquire, “Where is the closest bank branch?” The chatbot will respond in this case based on the user’s location. Moreover, chatbots can use mobile GPS to track the user’s location and deliver accurate responses each and every time.
- Solve Serious Difficulties Early
In the banking sector, chatbots can assist consumers with urgent, non-complex issues. Unlocking or locking cards, resetting, checking bank statements, and performing financial transfers are some of these problems. Customers can complete the entire transaction using an AI chatbot instead of holding on the phone.
The advantages of chatbots in the banking sector
1.Improved Customer Service
Many chatbots use NLP, or natural language processing, to analyze client demands and give appropriate responses or solutions. With chatbots providing customer support 24 hours a day, seven days a week, the wait for a client’s real-time solution is diminished.
According to Juniper Research, the operational cost reductions associated with the use of chatbots in banking will reach $7,3 billion by 2023, up from an expected $209 million in 2019. In addition to offering immediate customer service, chatbots also provide 24/7 support, which boosts customer satisfaction.
Chatbots provide 24/7 support in addition to quick client service, hence enhancing customer satisfaction.
- Customize Consumer Experience
Almost 63 percent of clients demand individualized attention. With client data, chatbots are significantly more effective in this regard at offering tailored service to each customer (after taking consumer consent to access their data).
To sum up, 2023 will be the year when people start to use chatbots. Chatbots are being used in a wide range of fields, such as healthcare, real estate, and many others. With so many different types of chatbots on the market, it can be hard to figure out which ones have the best features.
Since banking is one industry that improves the customer journey and experience at all stages, it is already way ahead of the curve when it comes to adopting Conversational AI solutions. AI-powered chatbots and voice bots have made it much easier for banks to interact with customers at all stages of the customer life cycle. In the future, they will be even better at interacting with customers in a way that feels more human.