Importance of Chatbots in banking sectors

chatbots in banking

We are living in the digital era, companies are rushing towards using the latest technology to enhance their business. Almost every sector has marked Artificial Intelligence as a digital strategy to grow their business. The banking sector has started using automation and artificial intelligence in the form of chatbots, and this has been the latest wave in the digital trend.

The use of chatbot in all sector has been a revolution and has revolutionized the way of customer engagement. Particularly when we talk about the banking industry, it has changed the entire face of communication and interaction with the customer.

Artificial intelligence is as serving as a boon to the banking industry. The introduction of the chatbot will revolutionize the way we were earlier interacting with the customer visiting and querying regarding the banking business.

Need for CHATBOT in Banking Industry

The involvement of AI in the form of chatbots in banking sectors will change the entire customer experience and will help the sector to meet the pace of changing customer needs and expectations.

Chatbots are a powerful tool, which can be used to automate all the repetitive queries placed from the customer side to solve his query and grievances.  These question if answer manually much time are consuming and has an adverse effect on the industries performance.

Chatbots simplifies that and banks have started using these technologies to simplify their work by making cases of the set of question to enhance the consumer experience.

Advantages of Chatbots in Banking Sector

  1. Chatbot serves as an emerging tool to provide 24×7 customer service support without any human interaction.
  2. It helps to automate the fraud prevention process and with it, we can collect critical information of the potential bank user.
  3. It can be used to provide a mandatory requirement to the consumers visiting and track their engagement.
  4. Add consistency to your brand identity, through the same reply to the same type of question and queries raised.
  5. Allows a smooth flow of information during peak traffic times, assuring a consistent response rate and enhancing user experience.
  6. It serves as a personalized marketing strategy and helps them to measure customer satisfaction.
  7. Chatbots provide a human touch and won’t let your potential customers feel like they are interacting with a bot.
  8. The automation process of customer engagement through chatbots cuts down the break-down cost.
  9. It provides quick response time and improved the consumer experience.
  10. Chatbots provide Better Lead Generation, Qualification and Nurturing.
  11. Chatbots helps banking sector business to pace up with the trends and be present on messaging platforms.

Biggest banks in the world are using chatbots and AI to enhance their business

  • Bank America
  • Capital One
  • American Express
  • DBS Singapore
  • JPMorgan Chase
  • Royal Bank of Scotland

What’s Next with Chatbot Development

The chatbots which we are using currently has limited functionality, and most of them are developed for a limited task, as they fail in handling request which is outside their domain.

There is a great opportunity for banking and financial organization to provide a completely different and advanced recommended experience by applying customer insights.

Contextual decision making can be used to engage in conversational banking where insights are delivered.  

As per PwC, can provide a personal touch to consumer experience and provide a WOW experience to the potential user.

  1. Whenever a customer visits and logs in their account the chatbot can start a conversation with a greeting and then discuss customized offers instead of the push-notification pop-up.
  2. Chatbot can use Natural Language process while having a conversation to give a personal touch to the conversation.
  3. Use of IoT device integrated chatbot technology to communicate through voice.

This type of customer engagement will convert more visitor to loyal customers in a much cost-effective way.

The banking sector has realized the power of Chatbots and Artificial intelligence. They have started digging to reveal its major advantages.  Collectively these advanced technology has the ability to collect insights and apply analytics to serve the potential customer.

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